Key Highlights

  • Philip Morris International (NYSE:PM) raised its quarterly dividend 8.8% to USD 1.60 on Wednesday, October 21, 2026, as adjusted EPS rose 5.4% to USD 2.36 and the adjusted operating margin widened to 44.7%.
  • Abbott Laboratories (NYSE:ABT) grew adjusted EPS 9.2% to USD 1.42 on 7.0% comparable sales growth, while GAAP EPS fell to USD 0.53 after USD 841 million of amortisation and legal settlements.
  • Rollins (NYSE:ROL) grew revenue 6.2% to USD 1,089.7 million, but its operating margin fell 140 basis points to 20.5% as residential customer acquisition "remained under pressure".
  • WD-40 Company (NASDAQ:WDFC) grew fiscal fourth-quarter sales 8% yet missed with USD 1.06 of diluted EPS as gross margin fell to 52.8%, which management believes was the low point.

Philip Morris International (NYSE:PM): price on flat volumes

Philip Morris International (NYSE:PM), which sells Marlboro cigarettes outside the US alongside IQOS heated tobacco and ZYN nicotine pouches, reported third-quarter results on Wednesday, October 21, 2026 and raised its quarterly dividend 8.8% to USD 1.60 per share. Adjusted diluted EPS rose 5.4% to USD 2.36, against the consensus estimate of USD 2.32, while reported diluted EPS fell 4.9% to USD 2.12, mainly on a non-cash fair value adjustment on equity security investments. Net revenues rose 5.5% to USD 11.44 billion, or 7.1% organically.

This is the clearest pricing story of the four. International Combustibles revenue rose 6.5% to USD 6.7 billion on flat cigarette volumes of 158.0 billion units, so pricing did the work, and segment gross profit grew 8.6% at a 68.5% margin. The adjusted operating income margin widened to 44.7% from 43.1%, and the company expects operating cash flow of about USD 13.5 billion in 2026 at prevailing exchange rates. The annualised USD 6.40 dividend equals about 76% to 77% of 2026 adjusted EPS guidance of USD 8.29 to USD 8.44, on simple arithmetic, and the forecast assumes no share repurchases. The risk is that combustible pricing meets resistance, while International Smoke-Free revenue rose only 0.7% reported, or 3.4% organically.

Abbott Laboratories (NYSE:ABT): comparable growth under acquisition accounting

Abbott Laboratories (NYSE:ABT), a diversified healthcare group spanning medical devices, diagnostics, nutrition and branded generic drugs, reported third-quarter results at 7:30 a.m. ET on Wednesday, October 21, 2026. Adjusted diluted EPS rose 9.2% to USD 1.42, against the consensus estimate of USD 1.41, while GAAP diluted EPS fell to USD 0.53 from USD 0.94. Sales grew 14.5% to USD 13.01 billion, or 7.0% on a comparable basis. Amortisation of intangible assets, a non-cash charge on acquired products and technology, doubled to USD 841 million from USD 420 million.

For Abbott, the defensive signal is the breadth of comparable growth. Electrophysiology, which treats heart rhythm disorders, grew 15.5% comparable to USD 873 million, Cancer Diagnostics, the former Exact Sciences, grew 13.8% to USD 968 million and Established Pharmaceuticals in key emerging markets rose 10.9%. Specified items comprised USD 841 million of amortisation, about USD 670 million of legal settlements and USD 178 million of other net expenses before tax, and the gap between GAAP and adjusted net earnings was about USD 1.56 billion on simple arithmetic. The risks are uneven growth, with Neuromodulation down 1.1% comparable, and reported profit well below adjusted figures, since Abbott gives no GAAP EPS guidance. It reaffirmed its 2026 adjusted EPS range of USD 5.50 to USD 5.55 and guides the fourth quarter at USD 1.62 to USD 1.67.

Rollins (NYSE:ROL): revenue growth without margin

Rollins (NYSE:ROL), the Atlanta-based pest control group behind Orkin, reported third-quarter results at 4:05 p.m. ET on Wednesday, October 21, 2026. Revenue rose 6.2% to USD 1,089.7 million, with organic growth of 4.4%, but operating income fell 1.0% to USD 222.9 million and the operating margin fell to 20.5% from 21.9%. Adjusted EPS was USD 0.34 against USD 0.35 a year earlier, matching the consensus estimate of USD 0.34, and GAAP EPS was USD 0.33. Buybacks rose to USD 120.1 million in the quarter from USD 3.7 million, taking the 2026 total to USD 162.9 million against USD 18.6 million a year earlier.

The squeeze shows how route density can drive profit. Pest control technicians run set routes, so revenue added to an existing route earns a high incremental margin, while slower customer additions leave labour and vehicle costs spread over fewer jobs. Residential, the largest line at USD 499.7 million, grew only 2.3% organically, and chief executive Jerry Gahlhoff said residential customer acquisition "remained under pressure", while commercial grew 6.6% organically. Gross margin fell to 53.5% from 54.4%. Operating cash flow of USD 241.9 million included USD 63 million from the timing of a tax refund, and Rollins gives no quantitative guidance.

WD-40 Company (NASDAQ:WDFC): a margin low it expects to reverse

WD-40 Company (NASDAQ:WDFC), the San Diego-based maker of WD-40 Multi-Use Product and other maintenance products, reported fiscal fourth-quarter 2026 results on Wednesday, October 21, 2026. Net sales rose 8% to USD 176.8 million, or 7% in constant currency, but gross margin fell to 52.8% from 54.7% and net income dropped 32% to USD 14.4 million. Diluted EPS fell to USD 1.06 from USD 1.56, against the consensus estimate of USD 1.13. Full-year gross margin still reached 55.3%, against 55.1% a year earlier.

Gross margin is the main profit lever, because advertising and other operating costs are planned largely as a share of sales. On simple arithmetic, the 1.9 point fall removed about USD 3.4 million of gross profit in the quarter. Chief executive Steve Brass said the company believes the fiscal fourth quarter of 2026 "marked the low point for gross margin", a view based on current information rather than a firm commitment. Fiscal 2027 guidance calls for gross margin of 54.0% to 55.5%, net sales growth of 4% to 7% and diluted EPS of USD 6.40 to USD 6.70. A new USD 100 million buyback programme has been effective since Tuesday, September 1, 2026.

Where Things Stand

The answer is that the four defensive franchises split on whether price or volume carried the quarter. Philip Morris International (NYSE:PM) widened its adjusted operating margin to 44.7% on flat cigarette volumes, the clearest pricing power in the group, and funded an 8.8% dividend rise. Abbott Laboratories (NYSE:ABT) grew adjusted EPS 9.2% on 7.0% comparable sales, while amortisation and legal settlements cut GAAP EPS to USD 0.53. Rollins (NYSE:ROL) grew revenue 6.2% but lost 140 basis points of operating margin as residential customer acquisition slowed, and WD-40 Company (NASDAQ:WDFC) guides a recovery from a 52.8% gross margin it believes was the low.

The next catalysts are the Rollins call at 8:30 a.m. ET on Thursday, October 22, 2026, the WD-40 Company dividend payment on Friday, October 30, the Abbott dividend payment on Monday, November 16 and the close of fiscal 2026 at Philip Morris International on Thursday, December 31, 2026. Dividends and guidance are not guaranteed, and this is not investment advice.