09:06 AM EST, 02/06/2026 (MT Newswires) -- Philip Morris International's ( PM ) fourth-quarter revenue fell short of market estimates, but the tobacco company issued an upbeat full-year earnings outlook.

The cigarette and vape maker on Friday posted revenue of $10.36 billion for the December quarter, up from $9.71 billion the year before, but below the consensus on FactSet for $10.38 billion. On an organic basis, sales rose 3.7%. Adjusted earnings inclined to $1.70 per share from $1.55, in line with the Street's view.

The stock declined 2.3% in the most recent premarket activity.

For 2026, the company anticipates adjusted EPS to come in between $8.38 and $8.53, representing annual growth of 11% to 13%. The average analyst estimate on FactSet is currently for non-GAAP EPS of $8.34. Net revenue is pegged to increase by 5% to 7% on an organic basis.

The guidance assumes an international industry volume decline of around 2% for cigarettes and heated tobacco units, or HTUs, excluding the US and China, according to Philip Morris ( PM ). The company forecasts smoke-free product shipment volume to grow by a high-single-digit and cigarette shipment volume to decline by roughly 3%, including the impact of weaker industry volume in India and Mexico, and the ongoing recovery of its Turkish business.

"With another strong performance expected in 2026, we are on track to outperform our 2024-2026 growth algorithm," Chief Executive Jacek Olczak said in a statement. "This again demonstrates our ability to create sustainable value for our shareholders as we renew our growth targets for 2026-2028."

For the period between 2026 and 2028, Philip Morris ( PM ) is targeting compound annual growth of 9% to 11% for adjusted EPS, excluding currency. The company also expects net revenue to rise by 6% to 8% on an organic basis in the period, with smoke-free product volume to increase by high-single-digit to low-teens, driving overall shipment volume gains.

Smoke-free net revenue and gross profit climbed by 12% each in the fourth quarter. Combustible revenue and gross profit accelerated by 3.2% and 5.5%, respectively.

Philip Morris' ( PM ) total shipment volume edged up 0.1% to 193.8 billion units, led by a 91% surge in electronic vapor products. Cigarette shipment volume decreased 2.2% to 149.4 billion units, while heated tobacco volume advanced 7.5% to 38.4 billion units.

For the ongoing quarter, the company expects adjusted EPS of $1.80 to $1.85, including a foreign-exchange tailwind of $0.14 at current rates. The Street is looking for $1.89.