PMNEUTRAL

PM Gross Margin Analysis

68.4%

Higher than 71% of Consumer Defensive sector peers

Updated 855h ago·SEC filings & market data

Key Takeaway

Gross margin measures the share of revenue left after covering the direct costs of making a product, and Philip Morris's 68.4% means it retains over two-thirds of each sales dollar before other expenses.

Sector Performance

71th percentile

68.4%

Sector Median

52.2%

Sector Avg

48.4%

Prior Period

68.1%(Jun 2026)

→ Stable

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Deep Analysis

That figure stands well above the Consumer Defensive sector median of 52.2%, placing the company at the 71st percentile among peers, so it is more profitable per unit than most comparable firms. However, year-over-year and quarter-over-quarter changes are both N/A, and no historical trend is available beyond the current 68.4%, preventing any assessment of whether this edge is widening or eroding. The pairing of a high level with an unknown trajectory suggests investors cannot yet bank on improvement, only on a currently strong cost position. This supports the NEUTRAL verdict: the margin level argues for quality, but the absence of trend data leaves no basis for a more bullish or bearish call.

Frequently Asked Questions

What does the Gross Margin tell investors about PM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does PM's Gross Margin compare to its sector?

PM's Gross Margin of 68.4% compares to a Consumer Defensive sector median of 52.2%, placing it in the 71th percentile.

Who are PM's closest peers by Gross Margin?

The closest Consumer Defensive peers by Gross Margin include: KDP (52.8%), ABEV (51.6%), MO (71.3%), CPB (27.5%), WMT (26.1%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.