Philip Morris International Inc

Strong Q3 + “best-in-class” momentum; profit & EPS beat - Net revenues: +$7.1% organic (+$5.5% in dollars) to $11.4B. - Operating income: > $5B adjusted operating income for the first time; adjusted OI margin close to 45% (≈ +10.5% organic OI / +9.6% in dollars). - Adjusted diluted EPS: $2.36, +6% excluding currency to a record quarterly level (growth also reduced by prior-year low tax comparison and FX).

Volume/shipments: smoke-free strong; combustibles resilient; mix helps margins - Total shipments: +0.6% in Q3 (outperforming a broadly stable industry). - Smoke-free shipments: +2.7% in Q3; +6.4% year-to-date, with Q3 benefiting from IQOS and growth acceleration in E-vapor. - IQOS HTUs: 41.5B units in Q3 (+6.7% YTD). - Oral smoke-free: +1.8% Q3 (supported by new U.S. variants + ZYN international + Swedish snus). - ZYN: U.S. Q3 shipments +4% (+13% excluding Sept. 2025 promotions); international acceleration. - E-vapor (VEEV): shipments +62% in Q3 (step-up; strong in Europe). - Combustibles: Cigarettes flat in Q3 vs industry -1.1%; pricing up, with some benefit from distribution-term restructuring.

Full-year outlook tempered by costs & U.S. investment—management guides to mid/lower range - Net revenues: still +5% to +7% organic; confidence that performance could be middle/upper portion due to stronger Q4 international smoke-free. - Operating income (organic): +7% to +9%, but guidance implies geopolitical cost pressure and heavy U.S. reinvestment weigh in H2. - Adjusted diluted EPS (currency neutral): $8.29–$8.44, ~+10% to +12% in dollar terms; management expects delivery more likely midpoint/lower half. - Key drag quantified: about ~0.5 percentage point cost impact from geopolitical inflation (Middle East/energy/shipping) + ~0.5 point from Ukraine disruptions (product destruction/supply-chain impacts), i.e., ~1 point combined growth headwind.