Hershey zaznamenal ve 2. čtvrtletí růst tržeb v segmentu North America Salty Snacks o 22,9 % na 387,8 mil. USD, ale růst omezila omezená nabídka. Retail takeaway v USA stoupl o 6,5 %.
Key Takeaways Hershey's salty snacks sales rose 22.9% in Q2, but supply constraints limited organic growth. Retail takeaway climbed 6.5%, led by Dot's, Reese's Filled Pretzels and variety multipacks.Automation is helping operations, with added capacity and a more optimized network expected in 2027. The Hershey Company (HSY - Free Report) is seeing solid demand across its North America Salty Snacks portfolio, but supply constraints limited its ability to fully convert that demand into sales in the second quarter of 2026. The pressure was most evident in multipacks and Dot’s pretzels, where strong consumer interest outpaced available supply.
U.S. salty snacks retail takeaway, excluding LesserEvil, increased 6.5% during the 12 weeks ended June 28, 2026, led by Dot’s, Reese’s Filled Pretzels and variety multipacks. However, organic constant-currency net sales jumped only 0.6% in the quarter, as supply limitations and the planned reduction in private-label sales caused sales growth to trail retail takeaway.
North America Salty Snacks net sales rose 22.9% year over year to $387.8 million in the second quarter. The LesserEvil acquisition contributed approximately 22 percentage points to the increase. Organic constant-currency volume grew about 4%, but came in below expectations as innovation and velocity gains were partly offset by execution challenges involving multipacks and Dot’s pretzels. Net price realization was an approximately 3-point headwind due to higher trade investment in new item launches.
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Hershey has increased investment in automation and capacity to address these constraints. Automation is beginning to help operations, while additional capacity is expected to come online in 2027. The company indicated that the growing pains around Dot’s are largely behind it. Still, the supply chain is not fully optimized, and elevated freight and logistics costs are expected to persist as Hershey uses spot freight to maintain service.
The key issue now is how quickly supply execution improves against strong retail demand. Hershey expects modest margin improvement in Salty Snacks during the second half as it captures demand and optimizes the supply chain. A more fully optimized network is expected in 2027, making capacity ramp-up and logistics normalization key factors to watch as the segment works to better align shipments with consumer demand.
The Zacks Rank #3 (Hold) stock has dipped 1.9% over the past three months compared with the industry’s decline of 2.1%.
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The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings per share (EPS) calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
Darling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
Laird Superfood, Inc. (LSF - Free Report) is a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products. LSF currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS suggests growth of 188.2% and 104 %, respectively, from the year-ago figures. LSF delivered an earnings surprise of 100% in the last reported quarter.
Allianz Asset Management ve 2. čtvrtletí snížila svůj podíl v Hershey o 72,6 % a prodala 55 711 akcií. Po prodeji držela 21 020 akcií v hodnotě 3,688 milionu USD.
Allianz Asset Management GmbH lowered its holdings in Hershey Company (The) (NYSE:HSY – Free Report) by 72.6% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 21,020 shares of the company’s stock after selling 55,711 shares during the period. Allianz Asset Management GmbH’s holdings in Hershey were worth $3,688,000 at the end of the most recent quarter.
Other institutional investors also recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Hershey by 6.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,310 shares of the company’s stock valued at $2,618,000 after buying an additional 937 shares during the period. EverSource Wealth Advisors LLC boosted its position in shares of Hershey by 20.2% in the second quarter. EverSource Wealth Advisors LLC now owns 697 shares of the company’s stock valued at $116,000 after acquiring an additional 117 shares during the period. Gamco Investors INC. ET AL purchased a new position in Hershey during the second quarter valued at approximately $267,000. Bank of Nova Scotia grew its stake in Hershey by 4.5% during the second quarter. Bank of Nova Scotia now owns 17,927 shares of the company’s stock valued at $2,975,000 after acquiring an additional 769 shares in the last quarter. Finally, Daiwa Securities Group Inc. increased its holdings in Hershey by 5.4% during the 2nd quarter. Daiwa Securities Group Inc. now owns 22,247 shares of the company’s stock worth $3,692,000 after acquiring an additional 1,149 shares during the period. 57.96% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth Several analysts have issued reports on HSY shares. Mizuho lowered their target price on shares of Hershey from $195.00 to $185.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 20th. Piper Sandler decreased their price target on shares of Hershey from $249.00 to $200.00 and set an “overweight” rating on the stock in a report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $191.00 price objective on shares of Hershey in a research report on Friday, July 31st. Weiss Ratings raised Hershey from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, July 31st. Finally, UBS Group boosted their target price on Hershey from $190.00 to $198.00 and gave the stock a “neutral” rating in a research report on Friday, July 31st. Seven research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $204.78.
Check Out Our Latest Research Report on Hershey Hershey Price Performance HSY stock opened at $173.25 on Wednesday. The firm has a 50 day simple moving average of $178.76 and a two-hundred day simple moving average of $191.86. The stock has a market cap of $34.81 billion, a PE ratio of 23.67, a P/E/G ratio of 1.37 and a beta of 0.11. Hershey Company has a one year low of $161.43 and a one year high of $239.48. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.18 and a quick ratio of 0.66.
Hershey (NYSE:HSY – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.43 by $0.47. The company had revenue of $2.79 billion during the quarter, compared to the consensus estimate of $2.63 billion. Hershey had a net margin of 12.24% and a return on equity of 31.92%. The firm’s revenue was up 6.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.21 EPS. Hershey has set its FY 2026 guidance at 8.360-8.520 EPS. On average, analysts predict that Hershey Company will post 8.49 EPS for the current fiscal year.
Hershey Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be issued a $1.452 dividend. This represents a $5.81 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date is Friday, August 14th. Hershey’s dividend payout ratio is presently 79.37%.
Insider Activity at Hershey In other news, CFO Steven Voskuil sold 1,500 shares of the stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $170.00, for a total transaction of $255,000.00. Following the transaction, the chief financial officer directly owned 53,195 shares in the company, valued at approximately $9,043,150. This represents a 2.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.08% of the company’s stock.
Hershey Profile (Free Report)
The Hershey Company (NYSE: HSY) is a leading North American chocolatier and snack manufacturer headquartered in Hershey, Pennsylvania. The company develops, produces and markets a wide range of confectionery and snack products for retail, foodservice and international customers. Hershey’s business spans manufacturing, branded product marketing, packaging and distribution across grocery, convenience, mass merchant and e-commerce channels.
Hershey’s product portfolio centers on chocolate and sugar confectionery, including core brands such as Hershey’s, Reese’s, Hershey’s Kisses and Twizzlers, alongside non-chocolate snacks and confectionery brands.
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Hershey jmenovala interního veterána Davea Hulayse finančním ředitelem s okamžitou platností. Nahrazuje Stevea Voskuila, který přechází na strategické projekty a odchází do důchodu na začátku roku 2027.
Hershey (HSY.N) on Wednesday named insider and industry veteran Dave Hulays as its finance chief, as the Reese's chocolates maker navigates a tough macroeconomic environment while benefiting from robust demand and higher prices.
Hulays, who joined Hershey in 2012, takes charge from Steve Voskuil with immediate effect.
Here are some details:
Hulays, age 54, joined Hershey as VP Finance of Canada and since has taken broader financial leadership responsibilities across the company, including the U.S. and International businesses.
Before joining Hershey, Hulays spent nearly 15 years at Procter & Gamble (PG.N) in a range of commercial, supply chain and global business development roles.
The company said outgoing-CFO Voskuil, who has led Hershey's finance organization for the past seven years, will move into the role of SVP, Strategic Projects, focused on initiatives for the CEO and board. Voskuil also announced his intent to retire in early 2027.
Hershey, which beat second-quarter sales and profit estimates in July, has added more salty snacks such as popcorn, cheese puffs and pretzels to its Halloween range to attract health-conscious consumers.
Hershey ve 2. čtvrtletí zvýšil upravený EPS o 57 % na 1,90 USD a tržby o 6,6 % na 2 787,3 mil. USD. Marže vzrostly, ale růst dál táhne hlavně zdražování při poklesu objemů.
Key Takeaways Hershey's Q2 adjusted EPS rose 57% as sales climbed 6.6%, while gross and operating margins expanded. Hershey's organic sales rose 3.6% as 12 points of pricing offset an 8-point volume decline. Hershey trades at 19.95X forward earnings, above its sub-industry and Consumer Staples sector. The Hershey Company (HSY - Free Report) delivered a much stronger second quarter, with earnings and margins rebounding as pricing, lower commodity costs and productivity improved profitability. Management also narrowed its 2026 sales and adjusted earnings outlook toward the upper end of prior ranges.
The trade-off is that organic growth still depended heavily on price increases while volumes fell, and the stock continues to command a premium to its sub-industry. The investment case therefore hinges on whether the recovery is strong enough to justify that premium while execution risks remain.
HSY’s Earnings Rebound Strengthens the Bull CaseHershey posted second-quarter adjusted earnings of $1.90 per share, up 57% year over year and above the Zacks Consensus Estimate of $1.45. Net sales increased 6.6% to $2,787.3 million, also exceeding the consensus mark of $2,649 million.
Profitability improved sharply. Adjusted gross margin expanded 350 basis points to 41.6%, while adjusted operating margin rose 450 basis points to 20.2%. Pricing, lower net commodity costs and productivity savings more than offset higher logistics expenses and unfavorable mix.
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Hershey’s Growth Outlook Still Depends on PricingOrganic, constant-currency sales rose 3.6% in the second quarter as roughly 12 points of net price realization offset an 8-point volume decline. North America Confectionery volume fell about 10 points as higher prices affected demand.
Management said elasticity increased slightly but remained somewhat better than its full-year expectations. Hershey now expects 2026 net sales growth of 4.5%-5%, organic sales growth of 3%-3.5% and adjusted earnings growth of 32.5%-35%, leaving volume response central to the outlook.
HSY Trades at a Premium to Its Confectionery PeersHSY trades at 19.95X forward 12-month earnings compared with 16.33X for its Zacks sub-industry and 17.49X for the Zacks Consumer Staples sector. The multiple remains below its five-year median of 25.02X but above the five-year low of 18.03X.
Mondelez International, Inc. (MDLZ - Free Report) is another global snacking company whose core business includes chocolate, with brands such as Cadbury Dairy Milk, Milka and Toblerone. Tootsie Roll Industries, Inc. (TR - Free Report) operates solely in confectionery, with brands including Tootsie Roll, DOTS and Junior Mints. These alternatives add context to Hershey’s valuation while its volume trends remain pressured.
Hershey’s Salty Snacks Add Growth and Execution RiskNorth America Salty Snacks sales increased 22.9% to $387.8 million, but the LesserEvil acquisition contributed about 22 percentage points. Organic, constant-currency sales rose just 0.6%, even as retail takeaway excluding LesserEvil increased 6.5%.
Execution remains the offset. Supply constraints affected multipacks and Dot’s pretzels, while segment income declined 5.9% to $62.6 million. The segment margin contracted 500 basis points to 16.1%, reflecting higher logistics costs, lower net price realization, increased consumer marketing and unfavorable mix.
Image Source: Zacks Investment Research
HSY’s Ratings Point to Selective OptimismFor now, Hershey’s profile supports patience rather than a clear buy signal. HSY carries a Zacks Rank #3 (Hold), a rating that can support holding a stock while the strongest purchase emphasis in the Zacks framework is generally reserved for Rank #1 and #2 stocks paired with favorable Style Scores. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HSY has a VGM Score of B, Growth Score of A, Value Score of C and Momentum Score of C. The Growth Score and VGM Score are favorable grades, while the Value and Momentum readings sit below the A and B grades favored by the Style Score framework. Together, the ratings leave room for selective optimism without removing the valuation and execution questions.
Beacon Pointe Advisors ve 2. čtvrtletí koupila nový podíl v Hershey za zhruba 13,416 milionu USD. Hershey zároveň oznámila zisk na akcii 1,90 USD a tržby 2,79 miliardy USD, obojí nad odhady.
Beacon Pointe Advisors LLC bought a new stake in shares of Hershey Company (The) (NYSE:HSY – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 76,464 shares of the company’s stock, valued at approximately $13,416,000.
Other institutional investors and hedge funds have also made changes to their positions in the company. Rakuten Investment Management Inc. acquired a new position in shares of Hershey in the 2nd quarter worth approximately $4,431,000. RB Capital Management LLC purchased a new position in shares of Hershey during the second quarter valued at $1,105,000. Glenview Trust Co acquired a new position in shares of Hershey in the 2nd quarter valued at about $974,000. Empowered Funds LLC acquired a new stake in shares of Hershey during the 2nd quarter valued at $5,539,000. Finally, United Capital Financial Advisors LLC purchased a new position in Hershey in the second quarter valued at about $702,000. 57.96% of the stock is currently owned by institutional investors.
Insider Activity In related news, CFO Steven E. Voskuil sold 1,500 shares of the stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $170.00, for a total transaction of $255,000.00. Following the completion of the sale, the chief financial officer directly owned 53,195 shares of the company’s stock, valued at approximately $9,043,150. This represents a 2.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.08% of the stock is owned by company insiders.
Hershey Trading Down 1.1% NYSE HSY opened at $179.34 on Friday. The stock has a 50-day simple moving average of $179.18 and a 200 day simple moving average of $194.54. The company has a market capitalization of $36.03 billion, a PE ratio of 24.50, a P/E/G ratio of 1.10 and a beta of 0.11. The company has a current ratio of 1.18, a quick ratio of 0.66 and a debt-to-equity ratio of 1.03. Hershey Company has a 12 month low of $161.43 and a 12 month high of $239.48. Hershey (NYSE:HSY – Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.43 by $0.47. The firm had revenue of $2.79 billion for the quarter, compared to analysts’ expectations of $2.63 billion. Hershey had a return on equity of 31.92% and a net margin of 12.24%.The company’s revenue was up 6.6% compared to the same quarter last year. During the same quarter last year, the business earned $1.21 earnings per share. Hershey has set its FY 2026 guidance at 8.360-8.520 EPS. Research analysts forecast that Hershey Company will post 8.49 EPS for the current year.
Hershey Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be paid a $1.452 dividend. This represents a $5.81 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Friday, August 14th. Hershey’s payout ratio is presently 79.37%.
Analyst Ratings Changes HSY has been the subject of several analyst reports. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $201.00 price objective on shares of Hershey in a research note on Friday, July 31st. Royal Bank Of Canada reduced their target price on shares of Hershey from $212.00 to $206.00 and set a “sector perform” rating for the company in a research note on Friday, August 21st. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $191.00 price objective on shares of Hershey in a research note on Friday, July 31st. Weiss Ratings raised Hershey from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, July 31st. Finally, Jefferies Financial Group set a $190.00 price objective on Hershey in a research report on Thursday, July 16th. Seven equities research analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $204.78.
View Our Latest Report on Hershey
About Hershey (Free Report)
The Hershey Company (NYSE: HSY) is a leading North American chocolatier and snack manufacturer headquartered in Hershey, Pennsylvania. The company develops, produces and markets a wide range of confectionery and snack products for retail, foodservice and international customers. Hershey’s business spans manufacturing, branded product marketing, packaging and distribution across grocery, convenience, mass merchant and e-commerce channels.
Hershey’s product portfolio centers on chocolate and sugar confectionery, including core brands such as Hershey’s, Reese’s, Hershey’s Kisses and Twizzlers, alongside non-chocolate snacks and confectionery brands.
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Hershey rozšiřuje halloweenskou nabídku o slané snacky, jako jsou popcorn, cheese puffs a preclíky, aby oslovil zákazníky, kteří se stravují zdravěji. Čokoláda ale zůstává jeho hlavní volbou na Halloween. Hershey také uvádí, že jeho Zero Sugar portfolio vzrostlo od roku 2020 do 2025 asi 4,3násobně.
Item 1 of 2 People wearing costumes go trick-or-treating by a decorated house on Halloween night in Pasadena, California, U.S., October 31, 2024. REUTERS/Mario Anzuoni/File Photo
[1/2]People wearing costumes go trick-or-treating by a decorated house on Halloween night in Pasadena, California, U.S., October 31, 2024. REUTERS/Mario Anzuoni/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesHershey expands Halloween range with popcorn, cheese puffs and pretzelsWeight-loss drugs are among factors driving healthier consumer habitsHershey says Zero Sugar portfolio has quadrupled in size from about five years agoIndividually wrapped, portion-controlled treats help keep confectionery relevant, Hershey saysLONDON, Aug 19 (Reuters) - Halloween trick-or-treating could be less sugary than usual this year as consumers look for healthier snacks and candy companies such as Hershey (HSY.N), opens new tab, the United States' biggest chocolate-maker, adapt their product offerings.
Fuelled by GLP-1 weight-loss drugs and a growing focus on health, eating habits are changing, leading the makers of sweet and salty snacks to adjust their portfolios to offer more protein, smaller-sized products and fewer calories.
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In the run-up to Halloween on October 31, which can account for nearly a fifth of annual confectionery retail sales, Hershey has added more salty snacks such as popcorn, cheese puffs and pretzels to its trick-or-treat offering, which its research has found U.S. consumers begin stocking up on months in advance.
"Certainly, the Lesser Evil brand and our salty snacks brands broadly, Skinny Pop and Pirate's Booty, having a greater presence in Halloween is in response to the (healthy eating) dynamic," Dan Mohnshine, Hershey's vice president for demand creation, strategy and innovation, told Reuters.
But he said chocolate was still the Halloween snack of choice.
"When it comes to GLP-1s, we've seen pretty strong resilience in the chocolate category here in the U.S.," he said.
Without giving precise figures, he said early-season sales of snack-size bags of chocolates and sweets had risen in double-digits versus a year ago.
Sugar-free versions, sweetened with sugar alcohols rather than conventional sugar, are also a growth area.
U.S. dollar sales in Hershey's Zero Sugar candy, mint and gum business grew around 4.3 times from 2020 through 2025, Mohnshine said.
AI-DRIVEN INNOVATION AND THE 'TRUNK-OR-TREAT' TRENDAccording to Hershey's "Unwrapping Halloween" report, published in partnership with data intelligence firm Morning Consult this month, three of the five biggest-selling U.S. candies at Halloween are Hershey's products and two-thirds of parents have already bought Halloween treats in the summer.
Further research from the National Confectioners Association found that in 2024, Americans spent $7.4 billion on treats, accounting for 18% of all confectionery retail sales that year.
Given the amount at stake, Hershey is using artificial intelligence to speed up product development.
"We've removed about three months from the typical timeframe it takes to go from consumer insight to approved concept," Mohnshine said. "As a result, our innovation pipeline over the last nine months has expanded 75%."
AI also identifies "trunk-or-treat" parties as a growing trend. They began in COVID lockdowns and are still favoured by communities and families who gather with their cars to exchange treats.
Mohnshine is expecting them to be more popular than ever this year and says the Reese's maker is at the ready with its expanded range of small, individually wrapped pieces that he said are "the key to remaining relevant".
Reporting by Alexander Marrow; editing by Barbara Lewis
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Benjamin Edwards Inc. ve 2. čtvrtletí zvýšila svůj podíl v Hershey o 9,9 % na 38 869 akcií v hodnotě 6,82 mil. USD. Společnost zároveň oznámila čtvrtletní dividendu ve výši 1,452 USD na akcii.
Benjamin Edwards Inc. increased its position in Hershey Company (The) (NYSE:HSY – Free Report) by 9.9% during the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 38,869 shares of the company’s stock after buying an additional 3,493 shares during the period. Benjamin Edwards Inc.’s holdings in Hershey were worth $6,821,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Hershey by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 19,067,235 shares of the company’s stock valued at $3,469,855,000 after purchasing an additional 191,671 shares in the last quarter. Capital International Investors raised its holdings in Hershey by 1.9% during the fourth quarter. Capital International Investors now owns 9,106,431 shares of the company’s stock valued at $1,657,189,000 after buying an additional 169,660 shares in the last quarter. State Street Corp lifted its position in shares of Hershey by 1.8% in the third quarter. State Street Corp now owns 7,253,041 shares of the company’s stock worth $1,356,681,000 after buying an additional 128,982 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Hershey by 2.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 5,315,653 shares of the company’s stock worth $967,343,000 after buying an additional 124,464 shares during the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of Hershey by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 4,831,101 shares of the company’s stock worth $876,434,000 after acquiring an additional 104,024 shares in the last quarter. Institutional investors own 57.96% of the company’s stock.
Hershey Stock Up 0.9% NYSE HSY opened at $185.97 on Friday. Hershey Company has a twelve month low of $161.43 and a twelve month high of $239.48. The stock has a market cap of $37.37 billion, a PE ratio of 25.41, a PEG ratio of 1.12 and a beta of 0.11. The firm has a 50-day simple moving average of $177.65 and a 200 day simple moving average of $195.79. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.66 and a current ratio of 1.18.
Hershey (NYSE:HSY – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.43 by $0.47. The firm had revenue of $2.79 billion for the quarter, compared to analyst estimates of $2.63 billion. Hershey had a net margin of 12.24% and a return on equity of 31.92%. The business’s revenue for the quarter was up 6.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.21 EPS. Hershey has set its FY 2026 guidance at 8.360-8.520 EPS. On average, research analysts forecast that Hershey Company will post 8.49 EPS for the current year.
Hershey Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be paid a $1.452 dividend. The ex-dividend date is Friday, August 14th. This represents a $5.81 dividend on an annualized basis and a dividend yield of 3.1%. Hershey’s payout ratio is 79.37%.
Analysts Set New Price Targets A number of research analysts have recently commented on HSY shares. Mizuho lowered their price objective on Hershey from $195.00 to $185.00 and set a “neutral” rating on the stock in a report on Wednesday, May 20th. UBS Group upped their target price on Hershey from $190.00 to $198.00 and gave the stock a “neutral” rating in a research report on Friday, July 31st. Bank of America lowered their price target on Hershey from $220.00 to $200.00 and set a “neutral” rating on the stock in a report on Thursday, June 25th. Jefferies Financial Group set a $190.00 price target on shares of Hershey in a research report on Thursday, July 16th. Finally, The Goldman Sachs Group set a $240.00 price objective on shares of Hershey in a research note on Friday, May 1st. Seven equities research analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $203.61.
View Our Latest Stock Analysis on HSY
Insider Activity at Hershey In related news, CFO Steven E. Voskuil sold 1,500 shares of the stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $170.00, for a total transaction of $255,000.00. Following the sale, the chief financial officer directly owned 53,195 shares in the company, valued at $9,043,150. This represents a 2.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.08% of the stock is owned by insiders.
Hershey Company Profile (Free Report)
The Hershey Company (NYSE: HSY) is a leading North American chocolatier and snack manufacturer headquartered in Hershey, Pennsylvania. The company develops, produces and markets a wide range of confectionery and snack products for retail, foodservice and international customers. Hershey’s business spans manufacturing, branded product marketing, packaging and distribution across grocery, convenience, mass merchant and e-commerce channels.
Hershey’s product portfolio centers on chocolate and sugar confectionery, including core brands such as Hershey’s, Reese’s, Hershey’s Kisses and Twizzlers, alongside non-chocolate snacks and confectionery brands.
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Hershey čeká ve druhé polovině roku 2026 růst díky inovacím, merchandisingu a sezónní poptávce včetně Halloweenu. Firma zároveň snížila celoroční výhled hrubé marže na zlepšení těsně pod 400 bazických bodů.
MarketBeat Week in Review – 06/29 - 07/03Hershey NYSE: HSY executives said the company expects growth in the second half of 2026 despite tougher comparisons, continued consumer pressure and supply-chain costs in its salty-snacks business.
During the company’s second-quarter earnings Q&A session, President and CEO Kirk Tanner said Hershey is positioned to deliver growth in the back half through innovation, merchandising programs and seasonal demand, including Halloween. However, he noted that the company will be lapping the prior-year success of its Oreo Reese’s innovation, which remains a strong performer but creates a difficult comparison.
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Hershey Stock May Be Near a Sweet Spot as Cocoa Pressure Eases“We really like our position in the second half to deliver growth,” Tanner said, adding that the company expects growth on both a one-year and two-year basis. He cited planned launches including Hershey’s n’ Creme products, programs tied to an upcoming Hershey movie and a “robust Halloween” plan supported by customer orders.
Shipments, Consumption and Second-Half Cadence Chief Financial Officer Steve Voskuil said reported U.S. confection retail consumption growth of about 3% in the first half understated underlying demand by roughly two percentage points. The difference reflected growth in non-measured channels, particularly food service, as well as the timing of Easter shipments.
Campbell's Soup Stock: Deep Value and a 7% Dividend YieldVoskuil said retail inventory replenishment after the April transition to new pack prices added another percentage point of growth. He expects the gap between consumption and shipments to narrow in the second half.
Hershey also shipped a little more than one percentage point of third-quarter merchandising programs during the second quarter, Tanner said. That timing was somewhat ahead of expectations, but the effect is expected to be largely offset by an additional shipping day in the fourth quarter.
For North America Confectionery, Voskuil said the company expects organic net sales growth in both the third and fourth quarters, although everyday confection retail sales could be negative in some periods. Seasonal performance is expected to be strong, he said.
The third quarter is expected to produce the strongest year-over-year earnings growth of the year because Hershey will lap its highest cocoa costs and the full impact of tariffs from the prior-year period, according to Voskuil. He said third- and fourth-quarter absolute EPS are expected to be relatively close.
2027 Framework and Cocoa Outlook Management reaffirmed that its longer-term framework remains achievable based on current conditions. Tanner clarified that the company’s 2% to 4% organic net sales growth range applies to North America Confectionery as a long-term algorithm. For 2027, a shorter Easter season would make 2% the starting point for that segment, with salty snacks and international operations expected to add to enterprise growth.
“Nothing we see today, commodities or otherwise, would cause us to move away from that framework,” Tanner said.
Voskuil said Hershey has good visibility into cocoa cost deflation in 2027, though he did not quantify the expected magnitude. He said the company has multiple tools to navigate commodity volatility, including hedging, pricing, productivity initiatives and investments.
Tanner said recent concern about potential El Niño effects has influenced cocoa prices, but management does not expect prices to remain at current levels over the long term. He pointed to healthier inventories, diversified supply, greater industry agility and encouraging 2026 and 2027 West African crop data after a slow start. “There is plenty of cocoa supply globally,” he said.
Management also said it does not view cocoa deflation as the sole driver of future margin recovery. Voskuil cited top-line growth, innovation, volume restoration, retailer partnerships, technology investments and productivity savings as additional levers.
Salty-Snack Supply Chain and Margin Pressure Hershey said demand for Dot’s pretzels has been strong, though the business experienced supply-chain challenges as it worked to keep up with demand. Tanner said the company had already increased spending on automation and capacity, with additional capacity scheduled to come online in 2027. Automation is expected to begin helping in the near term.
Voskuil said the supply-chain issues pressured salty-snack margins during the quarter through higher spot freight use, logistics costs and limited volume throughput. Hershey expects modest margin improvement during the second half as it captures demand and further optimizes its supply chain, though elevated freight and logistics costs are expected to persist for some time.
The company slightly reduced its full-year gross-margin outlook to just below a 400-basis-point improvement. Tanner said commodity benefits should be more meaningful in the second half, while strong productivity performance should partly offset the salty-snack challenges.
Dot’s was not a major component of Hershey’s Fourth of July execution, Tanner said, and its supply constraints did not materially affect the event. He expects the brand to have greater visibility in future salty-snack occasions, including fall football programming.
Innovation, Pricing and International Operations Tanner said innovation is the primary driver of year-to-date share dynamics in confectionery, while pricing gaps and elasticities have tracked largely as expected. Hershey plans to invest in trade during the second half to support innovation and merchandising programs.
The company expects volume trends to improve over time as commodity inflation moderates and pricing elasticities normalize. Tanner said Hershey expects early signs of improvement in its core Hershey’s brand portfolio, as well as momentum for Jolly Rancher and premium brands such as Cadbury.
In salty snacks, Tanner said Hershey has taken a disciplined approach to pricing and considers its brands, including SkinnyPop, Dot’s Pretzels and LesserEvil, to be positioned competitively despite their premium positioning.
Internationally, Voskuil highlighted Brazil, the United Kingdom and India as particularly strong markets in the first half, while noting that macroeconomic conditions remain challenging in Mexico. Higher cocoa, logistics and freight costs have pressured international margins, he said. Hershey expects optimization work in the second half to weigh on margins temporarily but support longer-term profitability.
On capital allocation, Voskuil said the company has no additional share repurchases planned for the second half at this time. He said Hershey continues to prioritize organic investments and potential acquisitions, while remaining opportunistic with its authorization to repurchase shares.
About Hershey (NYSE:HSY)The Hershey Company NYSE: HSY is a leading North American chocolatier and snack manufacturer headquartered in Hershey, Pennsylvania. The company develops, produces and markets a wide range of confectionery and snack products for retail, foodservice and international customers. Hershey's business spans manufacturing, branded product marketing, packaging and distribution across grocery, convenience, mass merchant and e-commerce channels.
Hershey's product portfolio centers on chocolate and sugar confectionery, including core brands such as Hershey's, Reese's, Hershey's Kisses and Twizzlers, alongside non-chocolate snacks and confectionery brands.
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Hershey ve 2. čtvrtletí zvýšil tržby o 6,6 % na 2,787 mld. USD a čistý zisk vyskočil na 457,7 mil. USD. Zároveň zúžil celoroční výhled růstu tržeb i zisku.
, /PRNewswire/ -- The Hershey Company (NYSE: HSY) today announced net sales and earnings for the second quarter ended June 28, 2026 and updated its 2026 sales and earnings outlook.
"We delivered a strong first half, with reported net sales up 8.7%, organic net sales up 5.8% and meaningful earnings recovery. We enter the second half with momentum, compelling growth plans, and increased investment behind our brands, merchandising, and innovation. With cost visibility and operating flexibility, we are well positioned to navigate dynamic markets and deliver on our full-year financial commitments," said Kirk Tanner, The Hershey Company President and Chief Executive Officer.
Second-Quarter 2026 Financial Results Summary1
Consolidated net sales of $2,787.3 million, an increase of 6.6%. Organic, constant currency net sales increased 3.6%. Reported net income of $457.7 million, or $2.26 per share-diluted, an increase of 629.0%. Adjusted earnings per share-diluted of $1.90, an increase of 57.0%. Six Months Ended 2026 Financial Results Summary2
Consolidated net sales of $5,891.5 million, an increase of 8.7%. Organic, constant currency net sales increased 5.8%. Reported net income of $892.8 million, or $4.39 per share-diluted, an increase of 211.3%. Adjusted earnings per share-diluted of $4.25, an increase of 28.4%. 1 All comparisons for the second quarter of 2026 are with respect to the second quarter ended June 29, 2025
2 All comparisons for the six months ended 2026 are with respect to the six months ended June 29, 2025
2026 Full-Year Financial Outlook
The Company is narrowing its net sales growth, organic net sales growth, reported earnings per share and adjusted earnings per share outlook for the year. This outlook does not include potential future tariff rebates.
2026 Full-Year Outlook
Prior Guidance
Current Guidance
Net sales growth*
4% to 5%
4.5% to 5%
Organic net sales growth
2.5% to 3.5%
3% to 3.5%
Reported earnings per share growth
79% to 89%
82% to 89%
Adjusted earnings per share growth
30% to 35%
32.5% to 35%
*Reflects an approximately 150 basis point benefit from the 2025 acquisition of LesserEvil
The Company also expects:
A reported and adjusted effective tax rate in the range of approximately 25% to 27%; Other expense, which primarily reflects periodic benefit costs relating to pension and other post-retirement benefit plans, of approximately $10 million; Interest expense of approximately $200 million to $210 million; Capital expenditures in the range of approximately $425 million to $475 million; and Advancing Agility & Automation Initiative savings of approximately $100 million. Below is a reconciliation of current projected 2026 and full-year 2025 earnings per share-diluted calculated in accordance with U.S. generally accepted accounting principles (GAAP) to non-GAAP adjusted earnings per share-diluted:
2026 (Projected)
2025
Reported EPS – Diluted
$7.89 - $8.17
$4.34
Derivative Mark-to-Market Losses
—
$2.08
Business Realignment Activities
0.30 - 0.35
$0.29
Acquisition and Integration-Related Activities
0.18 - 0.25
$0.20
Long-Lived Asset Impairment Charges
—
$0.03
Tax Effect of All Adjustments Reflected Above
$(0.13)
$(0.63)
Adjusted EPS – Diluted
$8.36 - $8.52
$6.31
Adjusted 2026 projected earnings per share-diluted, as presented above, does not include the impact of mark-to-market gains and losses on our commodity derivative contracts that are reflected within corporate unallocated expense in segment results until the related inventory is sold since we are not able to forecast the impact of the market changes.
Second-Quarter 2026 Components of Net Sales Growth
A reconciliation between reported net sales growth rates and organic, constant currency net sales growth rates, along with the contribution from net price realization and volume, is provided below:
Three Months Ended June 28, 2026
Percentage
Change as
Reported
Impact of
Foreign
Currency
Exchange
Percentage
Change on
Constant
Currency
Basis
Impact of
Acquisition
Percentage
Change on
Organic
Constant
Currency
Basis
Organic
Price
(Rounded)*
Organic
Volume/Mix
(Rounded)*
North America Confectionery
4.2 %
— %
4.2 %
— %
4.2 %
14 %
(10) %
North America Salty Snacks
22.9 %
— %
22.9 %
22.3 %
0.6 %
(3) %
4 %
International
5.7 %
3.6 %
2.1 %
— %
2.1 %
10 %
(8) %
Total Company
6.6 %
0.3 %
6.3 %
2.7 %
3.6 %
12 %
(8) %
*Percentage changes may not compute directly as shown due to rounding of amounts presented above.
Six Months Ended June 28, 2026
Percentage
Change as
Reported
Impact of
Foreign
Currency
Exchange
Percentage
Change on
Constant
Currency
Basis
Impact of
Acquisition
Percentage
Change on
Organic
Constant
Currency
Basis
Organic
Price
(Rounded)*
Organic
Volume/Mix
(Rounded)*
North America Confectionery
6.3 %
0.1 %
6.2 %
— %
6.2 %
13 %
(7) %
North America Salty Snacks
24.4 %
— %
24.4 %
21.4 %
3.0 %
(1) %
4 %
International
11.1 %
5.3 %
5.8 %
— %
5.8 %
11 %
(5) %
Total Company
8.7 %
0.6 %
8.1 %
2.3 %
5.8 %
11 %
(5) %
*Percentage changes may not compute directly as shown due to rounding of amounts presented above.
The Company presents certain percentage changes in net sales on a constant currency basis, which excludes the impact of foreign currency exchange. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rates in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in the average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.
Second-Quarter 2026 Consolidated Results
Consolidated net sales increased 6.6% to $2,787.3 million in the second quarter of 2026. Organic, constant currency net sales increased 3.6%, driven by net price realization of approximately 12 points. Volume declined approximately 8 points primarily reflecting elasticity impacts in North America Confectionery and International, partially offset by growth in North America Salty Snacks. The impact of the LesserEvil acquisition was a 2.7 point benefit, while the foreign exchange benefit was 0.3 points in the second quarter.
Reported gross margin was 45.3% in the second quarter of 2026, compared to 30.5% in the second quarter of 2025, an increase of 1,480 basis points. The reported gross margin increase was driven by net price realization, derivative mark-to-market gains, lower net commodity costs, and productivity program savings, which more than offset higher logistic expenses and unfavorable mix. Adjusted gross margin was 41.6% in the second quarter of 2026, an increase of 350 basis points compared to the second quarter of 2025, driven by net price realization, lower net commodity costs, and productivity program savings, which more than offset higher logistic expenses and unfavorable mix.
Selling, marketing and administrative expenses increased 2.9% in the second quarter of 2026 versus the second quarter of 2025. Selling, marketing and administrative expenses, excluding advertising and related consumer marketing, increased 6.0% versus the second quarter of 2025, driven by higher capability and technology investments, partially offset by lower incentive compensation. Advertising and related consumer marketing expenses decreased 3.3% in the second quarter of 2026 versus the same period last year, primarily due to efficiencies and timing of non-working media investment in North America Confectionery.
Second quarter 2026 reported operating profit was $642.6 million, an increase of 233.3% versus the second quarter of 2025, resulting in a reported operating profit margin of 23.1%, an increase of 1,570 basis points versus the prior year period. Adjusted operating profit of $563.5 million increased 37.3% versus the second quarter of 2025. Adjusted operating profit margin of 20.2% increased 450 basis points versus the second quarter of 2025. The reported operating profit margin increase reflects favorable derivative mark-to-market gains. Reported and adjusted operating profit margin increases reflect net price realization, lower net commodity costs, and productivity program savings which more than offset higher logistic expenses and capability and technology investments.
The reported effective tax rate in the second quarter of 2026 was 22.2%, a decrease of 3,570 basis points versus the second quarter of 2025. The reported effective tax rate decrease was driven by the impact of commodity hedges on foreign rate differentials and a one-time increase in tax reserves in the prior year period. The adjusted effective tax rate was 24.2%, a decrease of 860 basis points versus the second quarter of 2025. The adjusted effective tax rate for the second quarter of 2026 reflects a one-time increase in tax reserves in the prior year period.
The Company's second-quarter 2026 results, as prepared in accordance with GAAP, included items negatively impacting comparability of $79.1 million, or $0.36 per share-diluted. For the second quarter of 2025, items positively impacting comparability totaled $217.7 million, or $0.90 per share-diluted.
The following table presents a summary of items impacting comparability in each of the second quarter and six-months ended 2026 and 2025 periods (see Appendix I for additional information):
Pre-Tax (millions)
Earnings Per Share-Diluted
Three Months Ended
Three Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Derivative Mark-to-Market (Gains) Losses
$ (102.9)
$ 200.7
$ (0.52)
$ 0.98
Business Realignment Activities
8.4
15.1
0.04
0.07
Acquisition and Integration-Related Activities
15.4
1.9
0.08
0.01
Tax Effect of All Adjustments Reflected Above
—
—
0.04
(0.16)
$ (79.1)
$ 217.7
$ (0.36)
$ 0.90
Totals may not compute directly as shown due to rounding of amounts presented above.
Pre-Tax (millions)
Earnings Per Share-Diluted
Six Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Derivative Mark-to-Market (Gains) Losses
$ (72.7)
$ 412.2
$ (0.37)
$ 2.04
Business Realignment Activities
21.7
41.0
0.11
0.20
Acquisition and Integration-Related Activities
17.7
3.5
0.09
0.02
Tax Effect of All Adjustments Reflected Above
—
—
0.03
(0.36)
$ (33.3)
$ 456.6
$ (0.14)
$ 1.90
Totals may not compute directly as shown due to rounding of amounts presented above.
The following are comments about segment performance for the second quarter of 2026 versus the prior year period. See the schedule of supplementary information within this press release for additional information on segment net sales and profit.
North America Confectionery
Hershey's North America Confectionery segment net sales were $2,173.6 million in the second quarter of 2026, an increase of 4.2% versus the same period last year. Organic, constant currency net sales increased 4.2%, driven by approximately 14 points of net price realization. Volume declined approximately 10 points reflecting price elasticity and normal quarter-to-quarter shipment variability, partially offset by retailer inventory replenishment.
Hershey's U.S. candy, mint and gum (CMG) retail takeaway for the 12-week period ended July 19, 20263 in the multi-outlet plus convenience store channels (MULO+ w/ Convenience) increased 3.7%. For this period, Hershey's CMG share declined compared to the prior year due to increased competitive innovation.
The North America Confectionery segment reported segment income of $705.8 million in the second quarter of 2026, an increase of 40.1% versus the prior year period, resulting in a segment margin of 32.5% in the quarter, an increase of 830 basis points. The segment income and segment margin increases were driven by net price realization, lower net commodity costs, and supply chain productivity and transformation program savings, partially offset by higher logistic expenses.
3 The 12-week period ending July 19, 2026 excludes the impact of the Easter shift.
North America Salty Snacks
Hershey's North America Salty Snacks segment net sales were $387.8 million in the second quarter of 2026, an increase of 22.9% versus the same period last year. The acquisition of LesserEvil contributed approximately 22 percentage points to segment growth in the second quarter of 2026. Organic, constant currency net sales increased 0.6%. Volume increased approximately 4 points, below expectations, as strong innovation and velocity gains were partly offset by execution challenges on multipacks and Dot's pretzels. Net price realization was an approximate 3 point headwind due to higher trade investment behind new item launches.
Hershey's U.S. salty snacks retail takeaway for the 12-week period ended June 28, 2026 in MULO+ w/ Convenience, excluding LesserEvil, increased 6.5% versus the prior year period. This led to further gains in salty snack market share. Organic, constant currency net sales trailed retail takeaway due to supply limitations and the planned reduction of sales to private label customers.
North America Salty Snacks segment income was $62.6 million in the second quarter of 2026, a decrease of 5.9% versus the second quarter of 2025, driven by higher logistic costs, lower net price realization, increased consumer marketing investments, and unfavorable mix, which more than offset benefits from supply chain productivity and higher volume. This resulted in a segment margin of 16.1%, a decrease of 500 basis points versus the prior year period.
International
Second quarter 2026 net sales for Hershey's International segment increased 5.7% versus the same period last year to $225.9 million. Organic, constant currency net sales increased 2.1%. Price realization was approximately 10 points, driven by strategic pricing actions across key markets. Volume decreased approximately 8%, reflecting the impact of price elasticity and the depletion of inventory shipped in the first quarter of 2026 to mitigate geopolitical risk, partially offset by stronger-than-planned demand in Brazil and the UK.
International segment loss was $5.1 million in the second quarter of 2026, a decrease of $24.9 million versus the prior year period driven by increased raw material and manufacturing costs and higher advertising investment, partially offset by net price realization and supply chain productivity and transformation program savings. This resulted in a segment margin of (2.3)%, a decrease of 1,160 basis points versus the prior year period.
Unallocated Corporate Expense
Hershey's unallocated corporate expense in the second quarter of 2026 was $199.7 million, an increase of $20.1 million, or 11.2%, versus the same period of 2025. The year-over-year increase was primarily driven by continued investments in capabilities and technology which more than offset reduced incentive compensation.
Live Webcast
At approximately 7:00 a.m. (Eastern time) today, Hershey will post a pre-recorded management discussion of its second-quarter 2026 results and business update to its website at www.thehersheycompany.com/investors. In addition, at 8:30 a.m. (Eastern time) today, the Company will host a live question and answer session with investors and financial analysts. Details to access this call are available on the Company's website.
Note: In this release, for the second quarter of 2026, Hershey references income measures that are not in accordance with GAAP because they exclude certain items impacting comparability, including gains and losses associated with mark-to-market commodity derivatives, business realignment activities and acquisition and integration-related activities. The Company refers to these income measures as "adjusted" or "non-GAAP" financial measures throughout this release. These non-GAAP financial measures are used in evaluating results of operations for internal purposes and are not intended to replace the presentation of financial results in accordance with GAAP. Rather, the Company believes exclusion of such items provides additional information to investors to facilitate the comparison of past and present operations. A reconciliation of the non-GAAP financial measures referenced in this release to their nearest comparable GAAP financial measures as presented in the Consolidated Statements of Income is provided below.
Reconciliation of Certain Non-GAAP Financial Measures
Consolidated results
Three Months Ended
Six Months Ended
In thousands except per share data
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Reported gross profit
$ 1,263,308
$ 796,273
$ 2,486,039
$ 1,740,540
Derivative mark-to-market (gains) losses
(102,907)
200,727
(72,723)
412,181
Non-GAAP gross profit
$ 1,160,401
$ 997,000
$ 2,413,316
$ 2,152,721
Reported operating profit
$ 642,641
$ 192,811
$ 1,283,334
$ 562,032
Derivative mark-to-market losses
(102,907)
200,727
(72,723)
412,181
Business realignment activities
8,362
15,139
21,718
40,992
Acquisition and integration-related activities
15,419
1,880
17,680
3,465
Non-GAAP operating profit
$ 563,515
$ 410,557
$ 1,250,009
$ 1,018,670
Reported provision for income taxes
$ 130,615
$ 86,393
$ 288,205
$ 185,844
Derivative mark-to-market (gains) losses*
(13,230)
29,754
(15,047)
60,885
Business realignment activities*
2,135
3,808
5,443
9,986
Acquisition and integration-related activities*
3,746
448
4,295
826
Non-GAAP provision for income taxes
$ 123,266
$ 120,403
$ 282,896
$ 257,541
Reported net income
$ 457,665
$ 62,719
$ 892,770
$ 286,922
Derivative mark-to-market (gains) losses
(89,677)
170,974
(57,677)
351,297
Business realignment activities
6,227
11,330
16,276
31,005
Acquisition and integration-related activities
11,673
1,432
13,385
2,639
Non-GAAP net income
$ 385,888
$ 246,455
$ 864,754
$ 671,863
Reported EPS - Diluted
$ 2.26
$ 0.31
$ 4.39
$ 1.41
Derivative mark-to-market (gains) losses
(0.52)
0.98
(0.37)
2.04
Business realignment activities
0.04
0.07
0.11
0.20
Acquisition and integration-related activities
0.08
0.01
0.09
0.02
Tax effect of all adjustments reflected above**
0.04
(0.16)
0.03
(0.36)
Non-GAAP EPS - Diluted
$ 1.90
$ 1.21
$ 4.25
$ 3.31
* The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the Company's quarterly effective tax rate, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
** Adjustments reported above are reported on a pre-tax basis before the tax effect described in the reconciliation above for non-GAAP provision for income taxes.
In the assessment of our results, we review and discuss the following financial metrics that are derived from the reported and non-GAAP financial measures presented above:
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
As reported gross margin
45.3 %
30.5 %
42.2 %
32.1 %
Non-GAAP gross margin (1)
41.6 %
38.1 %
41.0 %
39.7 %
As reported operating profit margin
23.1 %
7.4 %
21.8 %
10.4 %
Non-GAAP operating profit margin (2)
20.2 %
15.7 %
21.2 %
18.8 %
As reported effective tax rate
22.2 %
57.9 %
24.4 %
39.3 %
Non-GAAP effective tax rate (3)
24.2 %
32.8 %
24.7 %
27.7 %
(1)
Calculated as non-GAAP gross profit as a percentage of net sales for each period presented.
(2)
Calculated as non-GAAP operating profit as a percentage of net sales for each period presented.
(3)
Calculated as non-GAAP provision for income taxes as a percentage of non-GAAP income before taxes (calculated as non-GAAP operating profit minus non-GAAP interest expense, net plus or minus non-GAAP other (income) expense, net).
Appendix I
Details of the charges included in GAAP results, as summarized in the press release (above), are as follows:
Derivative mark-to-market (gains) losses: The mark-to-market (gains) losses on commodity derivatives are recorded as unallocated and excluded from adjusted results until such time as the related inventory is sold, at which time the corresponding (gains) losses are reclassified from unallocated to segment income. Since we often purchase commodity contracts to price inventory requirements in future years, we make this adjustment to facilitate the year-over-year comparison of cost of sales on a basis that matches the derivative gains and losses with the underlying economic exposure being hedged for the period.
Business realignment activities: We periodically undertake restructuring and cost reduction activities as part of ongoing efforts to enhance long-term profitability. During the first quarter of 2024, we commenced the Advancing Agility & Automation Initiative to improve supply chain and manufacturing-related spend, optimize selling, general and administrative expenses, leverage new technology and business models to further simplify and automate processes, and generate long-term savings. During the three- and six-months ended 2026 and 2025, business realignment charges related primarily to severance and employee benefit costs, as well as other third-party costs related to this program.
Acquisition and integration-related activities: During the three- and six-months ended 2026, we incurred costs related to the integration of the acquisition of LesserEvil, LLC into our North America Salty Snacks segment, as well as costs related to the integration of the Sour Strips brand from Actual Candy, LLC into our North America Confectionery segment, including contingent consideration remeasurement adjustments. During the three- and six-months ended 2025, we incurred costs related to the acquisition of the Sour Strips brand from Actual Candy, LLC into our North America Confectionery segment.
Tax effect of all adjustments: This line item reflects the aggregate tax effect of all pre-tax adjustments reflected in the preceding line items of the applicable table. The tax effect for each adjustment is determined by calculating the tax impact of the adjustment on the Company's effective tax rate for the period presented, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to our 2026 Full-year Financial Outlook and other statements regarding our business outlook and financial performance. Many of these forward-looking statements can be identified by the use of words such as "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "strategy," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would," among others. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the Company's securities. Factors that could cause results to differ materially include, but are not limited to: disruptions or inefficiencies in our supply chain due to the loss or disruption of essential manufacturing or supply elements or other factors; issues, concerns or regulatory changes related to the quality and safety of our products, ingredients or packaging, human and workplace rights, and other environmental, social or governance matters; changes in raw material and other costs, along with the availability of adequate supplies of raw materials and the Company's ability to successfully hedge against volatility in raw material pricing; the Company's ability to successfully execute business continuity plans to address changes in consumer preferences and the broader economic and operating environment; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws, regulations and policies, including taxes and tariffs; political, economic, and/or financial market conditions, including with respect to inflation, rising interest rates, slower growth or recession, evolving priorities of the U.S. administration, and other events beyond our control such as the impacts on the business arising from international conflicts and geopolitical tensions; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure and that of our customers and partners (including our suppliers); our ability to hire, engage and retain a talented global workforce, our ability to realize expected cost savings and operating efficiencies associated with strategic initiatives or restructuring programs; complications with the design, implementation or usage of our new enterprise resource planning system, including the ability to support post-implementation efforts and maintain enhancements, new features or modifications; and such other matters as discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our other filings with the U.S. Securities and Exchange Commission from time to time. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
The Hershey Company
Consolidated Statements of Income
for the periods ended June 28, 2026 and June 29, 2025
(unaudited) (in thousands except percentages and per share amounts)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Net sales
$ 2,787,306
$ 2,614,718
$ 5,891,473
$ 5,420,137
Cost of sales
1,523,998
1,818,445
3,405,434
3,679,597
Gross profit
1,263,308
796,273
2,486,039
1,740,540
Selling, marketing and administrative expense
620,552
603,207
1,196,592
1,161,879
Business realignment costs
115
255
6,113
16,629
Operating profit
642,641
192,811
1,283,334
562,032
Interest expense, net
49,963
46,035
99,781
90,657
Other (income) expense, net
4,398
(2,336)
2,578
(1,391)
Income before income taxes
588,280
149,112
1,180,975
472,766
Provision for income taxes
130,615
86,393
288,205
185,844
Net income
$ 457,665
$ 62,719
$ 892,770
$ 286,922
Net income per share
- Basic
- Common
$ 2.32
$ 0.32
$ 4.52
$ 1.45
- Diluted
- Common
$ 2.26
$ 0.31
$ 4.39
$ 1.41
- Basic
- Class B
$ 2.11
$ 0.29
$ 4.10
$ 1.31
Shares outstanding
- Basic
- Common
147,573
148,247
148,001
148,175
- Diluted
- Common
202,745
203,188
203,249
203,168
- Basic
- Class B
54,614
54,614
54,614
54,614
Key margins:
Gross margin
45.3 %
30.5 %
42.2 %
32.1 %
Operating profit margin
23.1 %
7.4 %
21.8 %
10.4 %
Net margin
16.4 %
2.4 %
15.2 %
5.3 %
The Hershey Company
Supplementary Information – Segment Results
for the periods ended June 28, 2026 and June 29, 2025
(unaudited) (in thousands except percentages)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
% Change
June 28, 2026
June 29, 2025
% Change
Net sales:
North America Confectionery
$ 2,173,570
$ 2,085,468
4.2 %
$ 4,663,488
$ 4,385,608
6.3 %
North America Salty Snacks
387,845
315,519
22.9 %
737,915
593,317
24.4 %
International
225,891
213,731
5.7 %
490,070
441,212
11.1 %
Total
$ 2,787,306
$ 2,614,718
6.6 %
$ 5,891,473
$ 5,420,137
8.7 %
Segment income (loss):
North America Confectionery
$ 705,785
$ 503,929
40.1 %
$ 1,498,163
$ 1,200,303
24.8 %
North America Salty Snacks
62,578
66,480
(5.9) %
96,880
108,333
(10.6) %
International
(5,145)
19,795
(126.0) %
10,114
48,521
(79.2) %
Total segment income
763,218
590,204
29.3 %
1,605,157
1,357,157
18.3 %
Unallocated corporate expense (1)
199,703
179,647
11.2 %
355,148
338,487
4.9 %
Unallocated mark-to-market (gains) losses on commodity derivatives (2)
(102,907)
200,727
(151.3) %
(72,723)
412,181
(117.6) %
Costs associated with business realignment initiatives
8,362
15,139
(44.8) %
21,718
40,992
(47.0) %
Acquisition and integration-related activities
15,419
1,880
NM
17,680
3,465
NM
Operating profit
642,641
192,811
233.3 %
1,283,334
562,032
128.3 %
Interest expense, net
49,963
46,035
8.5 %
99,781
90,657
10.1 %
Other (income) expense, net
4,398
(2,336)
NM
2,578
(1,391)
NM
Income before income taxes
$ 588,280
$ 149,112
294.5 %
$ 1,180,975
$ 472,766
149.8 %
(1) Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based compensation expense and (d) other gains or losses that are not integral to segment performance.
(2) Net (gains) losses on mark-to-market valuation of commodity derivative positions recognized in unallocated derivative losses (gains).
Analytici čekají, že Hershey vykáže zisk 1,45 USD na akcii, což je meziročně o 19,8 % více, a tržby 2,65 miliardy USD. Odhad EPS byl za posledních 30 dní snížen o 1,1 %.
Wall Street analysts expect Hershey (HSY - Free Report) to post quarterly earnings of $1.45 per share in its upcoming report, which indicates a year-over-year increase of 19.8%. Revenues are expected to be $2.65 billion, up 1.3% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Hershey metrics that are commonly monitored and projected by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Net Sales- North America Salty Snacks' of $370.37 million. The estimate points to a change of +17.4% from the year-ago quarter.
Analysts forecast 'Net Sales- North America' to reach $2.42 billion. The estimate suggests a change of +0.7% year over year.
Based on the collective assessment of analysts, 'Net Sales- International' should arrive at $213.65 million. The estimate suggests a change of 0% year over year.
The average prediction of analysts places 'Net Sales- North America Confectionery' at $2.05 billion. The estimate indicates a year-over-year change of -1.9%.
Analysts expect 'Segment Income (loss)- North America Confectionery' to come in at $572.76 million. Compared to the present estimate, the company reported $503.93 million in the same quarter last year.
The combined assessment of analysts suggests that 'Segment Income (loss)- North America Salty Snacks' will likely reach $71.36 million. The estimate is in contrast to the year-ago figure of $66.48 million.
The consensus among analysts is that 'Segment income (loss)- International' will reach $13.15 million. Compared to the present estimate, the company reported $19.80 million in the same quarter last year.
According to the collective judgment of analysts, 'Segment income (loss)- North America' should come in at $644.12 million. The estimate is in contrast to the year-ago figure of $570.41 million.
View all Key Company Metrics for Hershey here>>>
Over the past month, shares of Hershey have returned -0.8% versus the Zacks S&P 500 composite's +1.7% change. Currently, HSY carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Hershey is expected to report Q2 sales of $2.7 billion, up nearly 1.3% from last year.HSY expects confection demand, snack growth and innovation to support quarterly performance.Hershey anticipates pricing and productivity gains to improve margins despite temporary headwinds. The Hershey Company (HSY - Free Report) is likely to witness top-line growth when it reports second-quarter 2026 earnings on July 30, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $2.7 billion, indicating growth of almost 1.3% from the prior-year quarter’s reported figure.
The consensus mark for earnings has been revised downward by 1 cent over the past seven days to $1.45 per share, which, however, implies a 19.8% increase from the figure reported in the year-ago quarter.
HSY has a trailing four-quarter earnings surprise of 19%, on average. In the last reported quarter, the company’s bottom line topped the Zacks Consensus Estimate by 14.6%.
Factors Likely to Influence HSY’s Upcoming ResultsHershey’s second-quarter performance is likely to have benefited from continued strength in its core confection business, supported by resilient consumer demand and sustained investments in media, merchandising and innovation. Management entered the quarter expecting spring shelf resets, increased shelf facings, optimized shelf placement and a refreshed price-pack architecture to improve retail velocity. Seasonal programs such as S'mores and Summer Sweets, along with innovation including Reese's OREO in the take-home aisle, also likely supported consumer demand and strengthened marketplace execution.
Another factor likely to have supported the quarter is the continued momentum in Hershey's expanding snacking portfolio. At its last earnings call, management projected meaningful distribution growth for core salty snack products, continued expansion of Dot's Snack Mix and increased brand-building efforts for Pirate's Booty through updated media and packaging initiatives. The company also continued investing in innovation across confection, refreshment, protein and salty snacks, while brands such as LesserEvil, Dot's Pretzels and Reese's Filled Pretzels continued to build on strong consumer momentum, providing additional support for overall business performance. The Zacks Consensus Estimate indicates a 17.1% increase in revenues of North America Salty Snacks for the quarter under review.
Profitability is likely to have improved during the second quarter. Management expected a meaningful recovery in gross margin to begin in the second quarter as pricing actions, productivity initiatives and transformation savings increasingly offset commodity cost pressures. The company planned to step up advertising and consumer marketing investments following timing-related shifts in the prior quarter while continuing to invest in technology and organizational capabilities. Management guided for second-quarter adjusted earnings per share to increase at least 15% year over year, driven by improved pricing relative to commodity costs despite higher business reinvestment.
However, the quarter might have faced several temporary headwinds. Management had indicated that shipment timing benefits recognized in the first quarter would reverse in the second quarter. The favorable impact of Easter timing and inventory stocking in the Middle East and the Asia Pacific is expected to unwind. The company continued to monitor consumer spending pressure, evolving health and wellness trends, SNAP program changes and broader macroeconomic uncertainty, all of which might have tempered demand and weighed on quarterly performance.
Earnings Whispers for HSYOur proven model does not conclusively predict an earnings beat for Hershey this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Hershey carries a Zacks Rank #3 and has an Earnings ESP of -3.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are three companies worth considering, as our model shows that these have the right combination to beat on earnings this time around:
The Vita Coco Company, Inc. (COCO - Free Report) currently has an Earnings ESP of +2.11% and a Zacks Rank of 1. The consensus estimate for the quarterly revenues is pinned at $205.9 million, which indicates 12.9% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco’s upcoming quarter’s EPS is pegged at 51 cents, which implies 27.5% growth year over year. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
Primo Brands Corporation (PRMB - Free Report) currently has an Earnings ESP of +16.51% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pegged at $1.76 billion, which indicates a surge of 1.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Primo Brands’ upcoming quarter’s EPS is pegged at 34 cents, which implies a 5.6% decrease year over year. PRMB delivered a trailing four-quarter earnings surprise of 1.4%, on average.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.42 billion, which indicates a decline of 14.5% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings per share of 59 cents implies an increase of 13.5% from the figure reported in the year-ago quarter. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.
Hershey mění Halloween na několik mikrosezón a začíná s ním už v létě, aby podpořila prodej Reese's a dalších značek. Firma zároveň nasazuje AI do marketingu i prodeje v prodejnách.
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Hershey is leaning into the "trunk or treat" trend, which often takes place long before Halloween. Hershey Stacy Taffet, Hershey's chief growth and marketing officer, has already entered her spooky season.
The Reese's and Jolly Rancher parent is conjuring up a new Halloween playbook, carving the holiday into distinct micro-seasons that start months before October 31, Taffet exclusively told CMO Insider.
A Morning Consult survey commissioned by Hershey in July found that 67% of US parents had bought Halloween candy or snacks during the summer in recent years. Almost half (49%) of parents polled were familiar with the term "Summerween."
With consumers celebrating Halloween early, CMOs face a challenge in building excitement without peaking too soon.
Taffet said Hershey has shifted from treating Halloween as "one long extended season" to a more occasion-led approach, with different brands and products promoted at different points.
Summer is about cueing the season with Reese's assorted Halloween shapes and marketing that centers on rituals like pumpkin carving and fall lattes.
"We'll use more parts of the portfolio that are either for individual consumption or for sharing in small groups as a way to say, 'Let's get excited, the season's coming,'" Taffet said.
As fall approaches, Hershey plans to lean into the "trunk or treating" trend, where families gather in parking lots for children to collect candy from car trunks.
When October nears, activity will ramp up, including a partnership with Amazon to deliver ready-to-go large trick-or-treat bowls and a bigger push for non-chocolate brands, such as its Pirate's Booty salty snacks.
Halloween is a high-stakes moment for Hershey. Last year, Hershey CEO Kirk Tanner said its Halloween sales performance had been disappointing, citing warmer weather among other factors. Retailers were also discounting candy at the time, following price hikes driven by higher cocoa prices.
Tanner said on last October's earnings call that there were opportunities to "go to school" on consumer insights to improve for Halloween 2026, such as evaluating new pack types, price points, and the product mix.
Behind the scenes, Taffet, who joined the company in April 2025, has been reconfiguring her department to handle moments like these.
"The biggest thing I've been focused on is really breaking down functional silos," so the company can more quickly react to consumer trends, Taffet said.
Within the growth office, the marketing, insights, innovation, and research and development teams now function together.
Hershey recently introduced a new marketing mix model — a method that determines the impact of individual marketing channels on sales — enabled by AI.
Taffet said AI and automation tools are making it easier for Hershey to flag celebrities and influencers who are already talking about its brands and reach out about potential partnerships. It has also deployed AI tools to its retail sales force to strengthen merchandising.
"Our retail team will go to a store manager and, using an augmented reality tool and analytics powered by AI, say, 'If you put the KitKat display over here by the checkout, your sales are going to go up by X%,'" Taffet said.
Taffet said Hershey is also aware that many people are financially stretched, and is introducing new product formats at lower prices.
"If they only have $20 to spend on getting their kid excited about Halloween, it could be a costume, it could be decorations, it could be Reese's Shapes, and we want to make sure that we're top of mind to delight people in that season," she said.
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Lara O'Reilly You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Lara O'Reilly is the anchor of the CMO Insider newsletter.She is a senior correspondent who has covered the digital advertising, marketing, and media industries since 2010. Her current beat includes big tech companies like Alphabet, and Meta, and adtech firms, agencies, publishers, the creator economy, and CMOs.Lara has previously worked as a reporter and executive producer at titles including The Wall Street Journal, Digiday, Yahoo Finance, and Marketing Week. She was previously Business Insider's senior global advertising editor from 2014 to 2017.Lara was named "Digital Journalist of the Year" by the London Press Club in 2016.Lara is a regular guest on TV and radio and has appeared on outlets such as the BBC, NPR, SiriusXM's Wharton Business Daily, and CTV Television Network. She also frequently speaks on stage at major events such as Web Summit, IFA, VivaTech, Advertising Week, and Cannes Lions.To get in touch with Lara O'Reilly, email [email protected] or contact her on Signal at @loreilly.71Check out Insider's source guide for tips on sharing information securely.Read some of Lara's recent work below:
Inside Amazon's plan to clobber rivals The Trade Desk and Google in a key area of advertisingMeet Cindy Rose, the former lawyer and top Microsoft exec set to become CEO of ad giant WPPHow X CEO Linda Yaccarino went from Elon Musk's fixer to out of a job in 2 yearsInside the political reckoning shaking up the ad industryMeet the 'reclusive' tech billionaire making an audacious bid to buy TikTokTop marketers are under a ton of pressure. They told me how they're trying to make themselves recession-proof.Big Tech workers got too used to perks. The pampering is over. Halloween
Hershey má ve 2. čtvrtletí začít obnovovat marže, protože odezní drahé kakaové zásoby. Jefferies ale zůstává na „Hold“ kvůli slabé poptávce a poklesu objemů.
Hershey Company (NYSE:HSY, XETRA:HSY) is expected to begin recovering margins in the second quarter as higher-cost cocoa inventory from last year cycles through, but Jefferies maintained a ‘Hold’ rating, citing continued weakness in consumer demand and limited evidence of a recovery in sales volumes.
Jefferies wrote that the second quarter "should be the first with meaningful year-over-year gross margin expansion," forecasting roughly 300 basis points of improvement as peak-cost inventory laps.
While cocoa prices have risen from February lows in recent weeks, the firm noted they remain well below year-ago levels and are unlikely to disrupt the near-term margin outlook because much of the company's cocoa exposure is hedged.
The firm expects shipment timing to weigh on reported results after around two percentage points of sales were pulled forward into the first quarter. As a result, it forecasts a modest decline in second-quarter organic sales despite continued pricing strength.
Jefferies expects pricing to contribute around 11 percentage points of growth in the quarter, more than offset by lower volumes. It forecasts Hershey's volumes to decline about 12% in the second quarter, noting that U.S. tracked chocolate dollar sales fell roughly 4% over the latest 12 weeks while chocolate volumes dropped nearly 19% amid continued consumer sensitivity to higher prices.
The analysts noted that competitor Mars has posted volume gains in four of the past six months, while Hershey plans to respond with increased product innovation. The company's salty snacks business, including LesserEvil and Dot's, is also expected to provide some support.
Looking to the second half of the year, Jefferies expects new marketing campaigns and product launches to support performance, including the America 250 program, a Thanksgiving film promotion, and new Reese's products. However, the firm wrote that it views 2027 as "a measured recovery rather than a snapback."
Jefferies slightly lowered its second-quarter revenue estimate to reflect softer tracked demand while leaving its full-year earnings forecast unchanged.
The firm increased its price target to $190, implying upside from current levels of $175, stating that it remains cautious "given the unresolved volume question and a valuation that already reflects the improved cost backdrop."
This is a fair market value price provided by Massive. Learn more.
52-Week Range$160.07▼
$239.48Dividend Yield3.23%
P/E Ratio33.51
Price Target$217.50
After a sweet run-up in its stock back in February, Hershey NYSE: HSY is now trading 3.8% below its year-start price.
But while the share price is lingering, the company’s picture has changed. Having overcome soaring cocoa costs with remarkable pricing power, easing commodity pressures, and the proven strength of its brands, the company is positioning itself for a potential margin recovery.
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Most analysts rate it a Hold, with a 20% upside, as a balance of pricing and demand continues. Yet with a proven loyalty from customers and an alignment of new products, the company appears well-positioned if the market follows current trends.
Hershey's Pricing Power Is Paying OffWhat hurt the company recently was a well-known event. Cocoa prices surged to historic highs in late 2024 and 2025, squeezing the margins of every chocolate maker in the world. Hershey saw its net income drop from $797 million in the fourth quarter of 2024 to $224 million the next three months in 2025 and to $63 million the quarter after that.
For Hershey, which generated annual sales of $11.7 billion last year and holds a market capitalization of around $36 billion, the shock also arrived at an awkward moment. The company was already pursuing a broader portfolio reorganization. It was pushing harder into salty snacks, including Dot's Homestyle Pretzels. LesserEvil, and SkinnyPop, as well as protein products, such as Fulfil bars in North America.
Sales and Earnings Rebound Despite Higher CostsWhen cocoa prices soared, the story for Hershey shifted from long-term growth to short-term damage control. As a result, the company leaned into its pricing power. By the end of last year, organic price realization, or the benefit from price increases, rose 6% in the fourth quarter of 2025, then accelerated to 10% in the first quarter of 2026. Consumers might have grumbled, but they kept buying.
The first-quarter 2026 results told the broader story. Consolidated net sales reached $3.1 billion, up 10.6% from $2.8 billion a year earlier. Adjusted earnings per share came in at $2.35, an increase of 12.4%, and well above analyst estimates, compared with $2.09 in the prior-year period. Reported net income was $435 million, or $2.13 per share, from $1.10 a year earlier.
Operating results were also sharply higher. The first quarter’s reported operating profit rose 73.5% to $640.7 million, while the profit margin hit 20.6%, up 7.4 points from last year. The company said an increase in sales and prices helped offset higher commodity and tariff-related costs.
Looking ahead, management reaffirmed its full-year guidance of 4% to 5% net sales growth and 30% to 35% adjusted earnings per share (EPS) growth. The full-year adjusted EPS is projected to come in the range of $8.20 to $8.52 compared with $6.31 in 2025.
Lower Cocoa Prices Could Boost MarginsThe success of its salty snacks was evident in North America, which reported $2.5 billion in net sales. That segment recorded an acquisition-led 26% year-over-year increase, while North American confectionery products recorded an 8.3% increase.
The cost picture is improving, but not resolved. In the previous quarter, the gross margin fell 17 percentage points to 37% as cocoa prices remained high. Even in the first three months of 2026, adjusted gross margin rose to 40.4%, but was still down 80 basis points year over year due to elevated commodity and tariff-related costs.
The encouraging development is that cocoa prices have fallen dramatically from their late-2024 and early-2025 highs, which were well above $10,000 per metric ton. Having fallen below $4,000 earlier this year, the commodity is currently trading at nearly $5,000.
ONE Hershey Aims to Drive Long-Term GrowthBeyond cocoa, the company is making other structural moves.
In March, the company announced the unification of its sweet, salty, and protein brand portfolios under an integrated operating model called ONE Hershey. The company hopes that by having its products under a single umbrella, it can more effectively align strategy, cross-selling, brand messaging, in-store performance, and innovation.
The initiative also comes at a time of top management changes. A new president and CEO took over last August, and more recently, a new president of U.S. operations was appointed to oversee the integrated businesses.
Analysts See Upside But Remain CautiousOverall MarketRank™97th Percentile
Analyst RatingHold
Upside/Downside21.7% Upside
Short Interest LevelHealthy
Dividend StrengthStrong
News Sentiment0.79 Insider TradingSelling Shares
Proj. Earnings Growth17.04%
See Full Analysis
The financial picture around the stock reflects the tension between the business quality and the cost environment.
Over the past 52 weeks, Hershey has traded between $160 to nearly $240 per share. At current levels around $175 per share, its price/earnings ratio of over 33 is not cheap, and the consensus among 23 analysts is that the stock is currently a Hold. Sixteen analysts recommend a Hold, and seven recommend a Buy.
With an average 12-month price target of $217.50, the current upside on the stock is above 20%. The highest price target is $260 and the lowest is $185, suggesting genuine uncertainty about the pace of margin recovery.
Hershey also carries a sizable quarterly dividend of $1.45 per share for a yield above 3%. The company has raised its dividend for 15 consecutive years,
The Next Few Quarters Could Be CriticalWhether the momentum that Hershey has created continues will soon be seen in its second-quarter earnings.
The question is whether its pricing power has held and how much lower cocoa costs will help. New management will also help set direction.
For investors, Hershey presents a choice between patience and precision. Hershey is a category-leading company with a storied brand in the consumer staples sector. It has proven pricing power, a 15-year dividend growth streak, and a commodity headwind that appears to be easing. The next quarter or two should show if the trajectory continues.
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Hershey v severoamerických slaných snackech zvýšil čisté tržby o 26 % na 350,1 mil. USD. K růstu přispěl hlavně LesserEvil, ale organické tržby vzrostly také o 5,6 %.
Key Takeaways Hershey's North America Salty Snacks net sales rose 26% year over year to $350.1 million.LesserEvil added 20.4 percentage points to growth, while organic constant-currency sales rose 5.6%.Dot's Pretzels, Reese's Filled Pretzels and Dot's Snack Mix helped lift retail sales and share. The Hershey Company (HSY - Free Report) started 2026 on a strong note in salty snacks, with first-quarter results highlighting growth across both acquired and legacy brands. North America Salty Snacks net sales increased 26% year over year to $350.1 million, reflecting continued consumer demand and successful innovation across the portfolio.
The LesserEvil acquisition contributed approximately 20.4 percentage points to segment growth, while organic constant-currency net sales jumped 5.6%, driven by volume growth of more than five points and roughly flat pricing. Growth extended beyond the acquisition. U.S. salty snacks retail takeaway, excluding LesserEvil, rose 9.8% for the 12-week period ended March 29, 2026, while retail sales increased nearly 10%, contributing to an almost 25-basis-point share gain.
Several brands played a meaningful role in the quarter's performance. Dot’s Pretzels posted a 13% year-over-year increase in retail sales, while Reese’s Filled Pretzels added 130 basis points to pretzel category share. Dot’s Snack Mix also gained traction quickly, capturing more than 200 basis points of snack mix market share during the quarter.
LesserEvil remained a standout contributor, with retail sales surging more than 65%, supported by expanded distribution, and strong trial and repeat purchases. The company plans to further support the brand through additional distribution gains, adjacent category expansion and brand-building investments.
Taken together, the quarter's results point to broad-based strength across Hershey's salty snacks portfolio. While LesserEvil provided a meaningful boost, gains in retail takeaway, market share and brand performance indicate that growth is being supported by multiple drivers across the segment.
HSY Stock Price Performance, Valuation & EstimatesShares of this Zacks Rank #3 (Hold) company have risen 7% over the past year against the industry’s decline of 0.1%.
HSY Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, Hershey trades at a forward price-to-earnings ratio of 19.62, above the industry’s average of 15.28.
HSY’s Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Hershey’s current fiscal-year sales and earnings per share suggests year-over-year growth of 5.1% and 33.9%, respectively.
Better Ranked Stocks to ConsiderThe Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) is a leading beverage company best known for its Vita Coco brand, with a portfolio that also includes hydration, energy and protein-based beverages. COCO sports a Zacks Rank #1.
The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings calls for year-over-year growth of 21.4% and 47.9%, respectively. COCO delivered a trailing four-quarter earnings surprise of 11.7%, on average.
Darling Ingredients Inc. (DAR - Free Report) is a global leader in converting food waste and animal by-products into sustainable ingredients and renewable energy products. DAR currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales and earnings suggests a year-over-year increase of 12.3% and 588.2%, respectively. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
