Hershey Reports Second-Quarter 2026 Financial Results

Rhea-AI Summary

Hershey (NYSE: HSY) reported second-quarter 2026 net sales of $2,787.3 million, up 6.6%, with organic, constant currency growth of 3.6%. Reported net income was $457.7 million or $2.26 per diluted share, up 629.0%, and adjusted EPS rose 57.0% to $1.90. For the first six months of 2026, net sales grew 8.7% to $5,891.5 million and adjusted EPS increased 28.4% to $4.25.

Reported gross margin expanded to 45.3% and adjusted gross margin to 41.6%. Hershey narrowed and slightly raised its 2026 outlook, guiding to net sales growth of 4.5%–5%, organic net sales growth of 3%–3.5%, reported EPS growth of 82%–89%, and adjusted EPS growth of 32.5%–35%, implying adjusted EPS of $8.36–$8.52.

Positive

• Q2 2026 net sales up 6.6% to $2,787.3 million
• Q2 2026 adjusted EPS up 57.0% to $1.90
• Reported gross margin up 1,480 bps to 45.3%; adjusted up 350 bps to 41.6%
• Adjusted operating profit up 37.3% with margin +450 bps to 20.2%
• Full-year 2026 guidance tightened with net sales growth now 4.5%–5%
• Adjusted EPS growth guidance raised to 32.5%–35%, or $8.36–$8.52

Negative

• Total Q2 organic volume declined about 8 percentage points
• North America Confectionery volume down about 10 points on elasticity and shipment variability
• North America Salty Snacks segment income down 5.9%; margin -500 bps to 16.1%
• International segment reported a $5.1 million loss with a -2.3% margin

News Explained

Hershey’s sales recovery is price-led and uneven: confectionery profit improved, but salty-snacks margin fell and international was loss-making.

Hershey has reported results for the second quarter ended June 28, 2026 and updated its 2026 outlook; the added operating detail shows reported sales growth combining price realization and the LesserEvil acquisition with lower volume. On the company’s total-company bridge, organic constant-currency sales rose 3.6%, with approximately 12 points from price realization and approximately 8 points of volume decline; LesserEvil added 2.7 points to reported growth.

Segment results were uneven: North America Confectionery income rose 40.1% to $705.8 million, with a 32.5% margin, while North America Salty Snacks income fell 5.9% to $62.6 million, with a 16.1% margin; International posted a $5.1 million loss and a (2.3%) margin. These figures show different operating directions across Hershey’s businesses rather than a uniform improvement.

The current outlook excludes potential future tariff rebates, while projected adjusted EPS excludes commodity-derivative mark-to-market gains or losses that are reflected when the related inventory is sold.

Market Context

Recent insider activity was classified as Net Selling. That platform context adds a governance and o...

Analysis

Recent insider activity was classified as Net Selling. That platform context adds a governance and ownership signal to this earnings report; investors can watch whether operating improvements offset volume, competition, and execution risks.

Key Figures

Q2 net sales: $2,787.3 million Reported net income: $457.7 million Reported diluted EPS: $2.26 per share +5 more

8 metrics

Q2 net sales $2,787.3 million Second quarter 2026; increased 6.6%

Reported net income $457.7 million Second quarter 2026; increased 629.0%

Reported diluted EPS $2.26 per share Second quarter 2026; increased 629.0%

Adjusted diluted EPS $1.90 Second quarter 2026; increased 57.0%

Net sales growth outlook 4.5% to 5% 2026 current guidance; prior guidance was 4% to 5%

Organic net sales growth outlook 3% to 3.5% 2026 current guidance; prior guidance was 2.5% to 3.5%

Reported EPS growth outlook 82% to 89% 2026 current guidance; prior guidance was 79% to 89%

Adjusted EPS growth outlook 32.5% to 35% 2026 current guidance; prior guidance was 30% to 35%

Previous Earnings Reports

5 past events · Latest: Apr 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 30	first-quarter earnings	Positive	-1.8%	Sales and earnings increased while full-year guidance was reaffirmed.
Feb 05	fourth-quarter earnings	Negative	+9.0%	Quarterly net income declined despite the company providing its 2026 outlook.
Oct 30	third-quarter earnings	Negative	-2.4%	Reported and adjusted earnings declined despite higher sales and raised guidance.
Jul 30	second-quarter earnings	Negative	+1.4%	Earnings declined as higher commodity costs pressured margins and full-year outlook.
May 01	first-quarter earnings	Negative	-0.0%	Sales, net income, adjusted EPS, and international results declined year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Hershey's earnings announcements showed mixed market alignment, with positive reported results sometimes followed by declines and weaker results sometimes followed by gains.

Key Terms

constant currency, mark-to-market, gaap, non-gaap

4 terms

constant currency financial

"Organic, constant currency net sales increased 3.6%."

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

mark-to-market financial

"derivative mark-to-market gains"

"Mark-to-market" is a method of valuing assets or investments based on their current market price, rather than their original cost or value. It helps investors see the most up-to-date worth of their holdings, much like checking the latest price of a stock before deciding to buy or sell. This approach ensures that financial statements reflect real-time value, providing a clearer picture of overall financial health.

gaap financial

"calculated in accordance with U.S. generally accepted accounting principles (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"The Company refers to these income measures as "adjusted" or "non-GAAP""

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HERSHEY, Pa., July 30, 2026 /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).

NM - not meaningful

 

			Three Months Ended				Six Months Ended
			June 28, 2026		June 29, 2025		June 28, 2026		June 29, 2025
Segment income as a percent of net sales:
North America Confectionery			32.5 %		24.2 %		32.1 %		27.4 %
North America Salty Snacks			16.1 %		21.1 %		13.1 %		18.3 %
International			(2.3) %		9.3 %		2.1 %		11.0 %

 

The Hershey Company
Consolidated Balance Sheets
as of June 28, 2026 and December 31, 2025
(in thousands of dollars)
Assets	June 28, 2026		December 31, 2025
	(unaudited)
Cash and cash equivalents	$                791,213		$                925,859
Accounts receivable - trade, net	907,368		729,547
Inventories	1,743,318		1,429,254
Prepaid expenses and other	514,342		504,239
Total current assets	3,956,241		3,588,899
Property, plant and equipment, net	3,475,714		3,529,608
Goodwill	2,985,609		2,996,005
Other intangibles	2,425,103		2,475,698
Other non-current assets	1,102,688		1,123,285
Deferred income taxes	27,697		27,802
Total assets	$             13,973,052		$             13,741,297
Liabilities and Stockholders' Equity
Accounts payable	$              1,400,822		$              1,255,701
Accrued liabilities	966,336		970,597
Accrued income taxes	59,601		63,725
Short-term debt	421,545		218,546
Current portion of long-term debt	504,167		503,327
Total current liabilities	3,352,471		3,011,896
Long-term debt	4,684,968		4,681,194
Other long-term liabilities	652,135		731,917
Deferred income taxes	720,788		679,540
Total liabilities	9,410,362		9,104,547
Total stockholders' equity	4,562,690		4,636,750
Total liabilities and stockholders' equity	$             13,973,052		$             13,741,297

 

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SOURCE The Hershey Company

FAQ

How did Hershey (HSY) perform in Q2 2026?

Hershey reported Q2 2026 net sales of $2,787.3 million, up 6.6%, and adjusted EPS of $1.90, up 57.0%. According to Hershey, growth was driven by net price realization, margin expansion and contributions from the LesserEvil acquisition despite lower volumes.

What is Hershey's updated full-year 2026 earnings guidance for HSY stock?

Hershey now expects reported EPS growth of 82%–89% and adjusted EPS growth of 32.5%–35% for 2026. According to Hershey, this implies adjusted EPS of $8.36–$8.52, excluding potential future tariff rebates and certain mark-to-market impacts.

What net sales growth does Hershey forecast for 2026 (HSY)?

Hershey projects 2026 net sales growth of 4.5%–5% and organic net sales growth of 3%–3.5%. According to Hershey, the net sales outlook includes about a 150-basis-point benefit from the 2025 LesserEvil acquisition, with continued pricing and productivity support.

How did Hershey's margins change in Q2 2026?

Hershey’s reported gross margin reached 45.3%, up 1,480 basis points, and adjusted gross margin rose to 41.6%, up 350 basis points. According to Hershey, gains reflected net price realization, lower net commodity costs and productivity savings, partly offset by higher logistics costs.

What were the Q2 2026 results for Hershey's North America Confectionery segment?

North America Confectionery net sales grew 4.2% to $2,173.6 million, entirely from pricing, with volume down about 10 points. According to Hershey, segment income increased 40.1% and margin improved 830 basis points to 32.5%, supported by lower commodity costs and productivity.

How did Hershey's North America Salty Snacks business perform in Q2 2026?

North America Salty Snacks net sales rose 22.9% to $387.8 million, largely from the LesserEvil acquisition, while organic growth was 0.6%. According to Hershey, segment income fell 5.9% and margin declined 500 basis points to 16.1% due to costs and higher marketing.

What were Hershey's first-half 2026 results and trends for HSY investors?

For the first six months of 2026, Hershey’s net sales were $5,891.5 million, up 8.7%, with organic growth of 5.8%. According to Hershey, reported EPS reached $4.39 and adjusted EPS $4.25, up 28.4%, reflecting pricing, margin improvement and productivity initiatives.