PMNEUTRAL

PM Gross Margin Analysis

68.4%

Higher than 82% of Consumer Defensive sector peers

Updated 36h 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 68.4% means Philip Morris retains over two-thirds of sales before other expenses.

Sector Performance

82th percentile

68.4%

Sector Median

52.2%

Sector Avg

50.4%

Prior Period

68.1%(Jun 2026)

→ Stable

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Deep Analysis

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

This is well above the consumer defensive sector median of 52.2%, placing the company in the 82nd percentile among peers. The trend is largely undetermined because year-over-year change is not available, but the quarter-over-quarter change is a positive 0.4%, improving from 68.1% to 68.4%. High and slightly rising gross margins imply the company can charge premium prices or manage production costs effectively, which lowers near-term earnings risk. This combination of a high level and a small positive quarterly shift supports the NEUTRAL verdict: strong profitability is balanced against other factors that keep the overall view cautious.

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 82th 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%), PG (49.5%), CELH (48.3%), BUD (56.6%).

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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.