Philip Morris 3Q Profit Falls, Despite Higher Sales

By Connor Hart

Philip Morris International reported higher revenue in the latest quarter, though profit fell as the company faced inflationary pressures and stepped up its investments

The tobacco company on Wednesday posted quarterly earnings of $2.12 a share, down from $2.23 a share the year prior.

Stripping out one-time items, earnings came in at $2.36 a share. Analysts polled by FactSet expected adjusted earnings of $2.30 a share.

Net revenues increased 5.5% to $11.4 billion, compared with Wall Street models for $11.32 billion.

Overall shipments ticked up 0.6%, driven by a 2.7% increase in smoke-free products..

Sales across Philip Morris' smoke-free business, which includes vapes and Zyn nicotine pouches, were up 4.1%. The unit accounted for more than 40% of the company's total net revenues in the recent quarter.

In the U.S., total Zyn shipments climbed 4.2% to 3.2 billion pouches. Philip Morris attributed the increase in part to recent product launches, such as new flavors and variants, and said it plans to further increase investments to support the brand in the current quarter.

Sales across the company's combustibles unit, meanwhile, increased 6.4%.

For the year, Philip Morris now expects earnings of $7.11 to $7.26 a share, or $8.29 to $8.44 a share on an adjusted basis. The company last month guided for earnings of $7.28 to $7.42 a share, or $8.35 to $8.50 a share on an adjusted basis.

Analysts are looking for earnings of $7.79 a share, as well as adjusted earnings of $8.40 a share.

Shares fell 2.5%, to $195, in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

October 21, 2026 07:49 ET (11:49 GMT)