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Philip Morris International Inc. (NYSE:PM) on Tuesday reported stronger-than-expected third-quarter results, driven by solid sales and resilient demand for its smoke-free products. Philip Morris reported quarterly adjusted earnings of $2.24 per share, exceeding analyst expectations of $2.09 and marking a 17.28% increase from $1.91 a year earlier. Revenue for the quarter came in at $10.85 billion, beating the consensus estimate of $10.69 billion, and rising 9.42% from $9.91 billion in the same period last year. Also Read: Philip Morris Just Raised Its Dividend Again Smoke-Free Portfolio Growth Philip Morris said its smoke-free business contributed 41% of total net revenues, up 2.9 percentage points from the same quarter last year. The segment also accounted for more than 42% of the company’s total gross profit, marking an increase of 2.5 percentage points from a year earlier. The company noted that its IQOS brand continues to strengthen its position as the second-largest nicotine brand in the markets where it operates, gaining 0.9 percentage points in combined cigarette and heated tobacco unit (HTU) industry share to reach 9.1%. IQOS continues to drive heat-not-burn growth globally, while VEEV e-vapor and ZYN oral nicotine pouches see strong international expansion. In the U.S., ZYN grew 39% as supply normalized. In the e-vapor segment, Philip Morris’s VEEV brand continued to deliver strong and increasingly profitable growth, expanding its availability to 46 markets. Dividend Increase and Liquidity Additionally, the company increased its regular quarterly dividend by 8.9% to $1.47 per share, or an annualized $5.88 per share. Philip Morris reported cash and cash equivalents of $4.04 billion as of September 30, 2025. Management Commentary “Our global smoke-free portfolio is outgrowing the industry by a clear margin, driving positive total volumes, strong top-line growth and impressive margin expansion,” CEO Jacek Olczak said. Philip Morris CFO Emmanuel Babeau said in the earnings call that Zyn saw unusually high profitability during supply shortages. The company plans to normalize promotional activity, though promotions will remain higher than in the first half. Outlook On the back of its performance, Philip Morris raised its full-year 2025 guidance. The adjusted earnings guidance was raised slightly to $7.46-$7.56 per share, versus the prior $7.43-$7.56 per share range and the consensus forecast of $7.53 per share. The company expects total international industry volumes for cigarettes and heated tobacco units (HTUs), excluding China and the U.S., to decline by about 1% in 2025. Growth in smoke-free product volumes assumes a 10% to 12% rise in adjusted HTU in-market sales, along with U.S. nicotine pouch shipment growth in the second half of the year broadly in line with retail offtake trends, excluding trade inventory effects. Philip Morris also forecasts organic net revenue growth of around 6% to 8%, and organic operating income growth of 10% to 11.5%, reflecting continued investment in the U.S. market. Price Action: Philip Morris stock initially climbed after the company beat third-quarter EPS and sales estimates and raised its fiscal 2025 guidance, but it later gave up gains. At last check Tuesday, shares were trading lower by 6.16% to $148.33. Read Next: General Motors Sees Brighter Road Ahead As CEO Eyes EV Profitability And Tariff Relief Photo via Shutterstock
