Shares of Philip Morris International (PM) surged 5.02% in pre-market trading on Tuesday, following the company's impressive third-quarter earnings report and an upward revision of its annual profit forecast. The tobacco giant's strong performance was largely driven by the continued success of its smoke-free products segment.

Philip Morris reported adjusted earnings per share of $2.24 for the third quarter, significantly beating the analyst consensus estimate of $2.09. This represents a 17.28% increase from the same period last year. The company's net revenues rose by 7.8% to $10.845 billion, surpassing the expected $10.686 billion.

The company's smoke-free business continued to show robust growth, now accounting for 41% of total net revenues, up 2.9 percentage points year-over-year. Smoke-free product shipment volumes increased by 16.6%, while net revenues from this segment grew by 17.7%. In light of these strong results, Philip Morris raised its full-year adjusted EPS guidance to a range of $7.46 to $7.56, up from its previous forecast of $7.43 to $7.56.

Investors are responding positively to Philip Morris's successful transition towards smoke-free products and its ability to exceed growth targets. The company stated it is "on track to exceed 2024-26 growth targets," signaling continued optimism for its long-term performance in the evolving tobacco industry landscape.