Investing.com -- Philip Morris International Inc.'s (NYSE: PM) third-quarter results were posted before the open today, with the company topping consensus expectations. However, shares are down around 2.5% premarket.

Adjusted earnings per share of $2.36 surpassed the analyst estimate of $2.30, while revenue of $11.4 billion exceeded the consensus of $11.32 billion. Revenue increased 5.5% from the prior-year quarter, driven by growth in both smoke-free and combustible products.

The company maintained its full-year adjusted EPS forecast range of $8.29 to $8.44, representing growth of 9.9% to 11.9% compared to 2025. The midpoint of $8.37 aligns with the company's previous guidance.

However, Philip Morris noted a greater likelihood of organic operating income growth landing in the middle or lower half of its 7% to 9% forecast range, citing cost impacts from ongoing geopolitical tensions and increased U.S. growth investments. Shares fell 2.5% following the results.

"We delivered another excellent quarter, with growing total volumes, double-digit organic operating income growth and robust margin expansion," said Jacek Olczak, Group CEO.

The company's smoke-free products accounted for more than 40% of total net revenues in the quarter, with shipments increasing 2.7%. IQOS heat-not-burn units grew 1.5% to 41.5 billion units, while e-vapor product VEEV surged 61.6%. In the U.S., ZYN nicotine pouch shipments rose 4.2% to 3.2 billion pouches, though the segment's operating income declined 3.3% on a reported basis due to increased marketing investments.

The combustible segment showed resilience with flat cigarette volumes and net revenue growth of 6.5%, driven by 8.9% pricing. Philip Morris noted energy-related inflation created incremental cost pressures in the quarter, with expectations for a slightly higher impact in the fourth quarter.

The company increased its regular quarterly dividend by 8.8% to $1.60 per share.

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