Hershey (NYSE: HSY) lifts 2026 outlook after big Q2 profit gain
Rhea-AI Filing Summary
The Hershey Company reported second-quarter 2026 net sales of $2,787.3 million, up 6.6%, with organic, constant currency net sales up 3.6%. Pricing added about 12 points while volume declined about 8 points. Reported net income rose to $457.7 million, or $2.26 per diluted share, an increase of 629.0%, and non-GAAP diluted EPS was $1.90, up 57.0% versus the prior year period.
Reported gross margin expanded to 45.3% from 30.5%, and non-GAAP gross margin improved to 41.6%. Operating profit increased 233.3% to $642.6 million, with non-GAAP operating profit up 37.3% to $563.5 million. For the first six months of 2026, net sales were $5,891.5 million, up 8.7%, and non-GAAP diluted EPS was $4.25, up 28.4%. The company raised and narrowed its 2026 outlook, now targeting 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 diluted EPS of $8.36–$8.52 versus $6.31 in 2025.
Positive
- Second-quarter 2026 non-GAAP diluted EPS increased 57.0% to $1.90, while reported EPS rose 629.0% to $2.26, reflecting stronger profitability and margin expansion.
- Reported gross margin expanded to 45.3% from 30.5% and non-GAAP operating margin rose to 20.2%, indicating significant improvement in cost structure and pricing power.
- The company raised and narrowed its 2026 outlook, guiding adjusted diluted EPS to $8.36–$8.52 versus $6.31 in 2025, with net sales growth of 4.5%–5% and organic growth of 3%–3.5%.
Negative
- None.
Filing Explained
The July 30 filing updates Hershey’s outlook and reports June 28 cash, debt, and equity balances; it describes financial results, not a holder-ownership transaction.
Under the supplied definition, Form 8-K reports specified material events within four business days; this filing furnishes the company’s second-quarter results and updated 2026 outlook.
The filing’s holder-relevant structural effect is disclosure of financial condition: as of
The balance sheet separately reported short-term debt of
The updated 2026 outlook excludes potential future tariff rebates and includes expected capital expenditures of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Net Sales: $2,787.3 million
Q2 2026 Reported Net Income: $457.7 million
Q2 2026 Non-GAAP EPS - Diluted: $1.90
+5 more
8 metrics
Q2 2026 Net Sales
$2,787.3 million
Consolidated net sales for the second quarter of 2026, up 6.6%
Q2 2026 Reported Net Income
$457.7 million
Second-quarter 2026 reported net income, up 629.0% vs Q2 2025
Q2 2026 Non-GAAP EPS - Diluted
$1.90
Adjusted diluted EPS for Q2 2026, an increase of 57.0%
Six-Month 2026 Net Sales
$5,891.5 million
Net sales for the six months ended June 28, 2026, up 8.7%
Q2 2026 Gross Margin
45.3%
As reported gross margin in Q2 2026 vs 30.5% in Q2 2025
2026 Adjusted EPS Guidance
$8.36 - $8.52
Projected 2026 adjusted EPS – diluted vs $6.31 in 2025
2026 Net Sales Growth Outlook
4.5% to 5%
Full-year 2026 net sales growth guidance range
Capital Expenditures 2026 Outlook
$425 million to $475 million
Expected 2026 capital expenditures range
Key Terms
organic, constant currency net sales, derivative mark-to-market (gains) losses, business realignment activities, Advancing Agility & Automation Initiative, +1 more
5 terms
organic, constant currency net sales financial
"Organic, constant currency net sales increased 3.6%, driven by net price realization"
A measure of revenue that shows how much a company’s existing business sold, after removing the effects of acquisitions, divestitures or one‑off changes and also stripping out gains or losses caused by foreign exchange rates. Think of it as comparing the same garden’s harvest from one season to the next without adding new plots or blaming different weather — it reveals the true underlying sales trend investors use to judge organic demand and operational performance.
derivative mark-to-market (gains) losses financial
"Derivative Mark-to-Market (Gains) Losses $ (102.9) $ 200.7"
business realignment activities financial
"Business realignment activities related primarily to severance and employee benefit costs"
Business realignment activities are planned changes a company makes to how it operates—such as reorganizing teams, closing or selling divisions, shifting product focus, cutting costs or changing where it invests—intended to improve efficiency or adapt to new conditions. For investors, these moves matter because they can change future profits, cash flow and risk: like rearranging a house to make it more livable, the goal is better performance, but the short-term disruption and costs can affect share value.
Advancing Agility & Automation Initiative financial
"we commenced the Advancing Agility & Automation Initiative to improve supply chain"
non-GAAP EPS - Diluted financial
"Non-GAAP EPS - Diluted $ 1.90 $ 1.21 $ 4.25 $ 3.31"
Earnings Snapshot
Q2 2026 net sales: $2,787.3 million · Guidance included
Quarter and six months ended June 28, 2026
Q2 2026 net sales
$2,787.3 million
increase of 6.6% vs second quarter ended June 29, 2025
Q2 2026 reported EPS – diluted
$2.26
increase of 629.0% vs second quarter ended June 29, 2025
Q2 2026 non-GAAP EPS – diluted
$1.90
increase of 57.0% vs second quarter ended June 29, 2025
Six months 2026 net sales
$5,891.5 million
increase of 8.7% vs six months ended June 29, 2025
Six months 2026 non-GAAP EPS – diluted
$4.25
increase of 28.4% vs six months ended June 29, 2025
Guidance
For 2026, the company expects net sales growth of 4.5% to 5%, organic net sales growth of 3% to 3.5%, reported EPS growth of 82% to 89%, adjusted EPS growth of 32.5% to 35%, and adjusted EPS – diluted of $8.36 to $8.52.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did The Hershey Company (HSY) perform in Q2 2026?
The Hershey Company reported Q2 2026 net sales of $2,787.3 million, up 6.6%, and reported net income of $457.7 million. Diluted EPS was $2.26, up 629.0%, while non-GAAP diluted EPS rose 57.0% to $1.90 versus Q2 2025.
What were The Hershey Company (HSY) results for the first six months of 2026?
For the first six months of 2026, Hershey generated net sales of $5,891.5 million, an 8.7% increase. Reported net income was $892.8 million, with diluted EPS of $4.39. Non-GAAP diluted EPS was $4.25, up 28.4% versus the six months ended June 29, 2025.
How did margins change for The Hershey Company (HSY) in Q2 2026?
In Q2 2026, Hershey’s reported gross margin improved to 45.3% from 30.5%, and non-GAAP gross margin rose to 41.6%. Reported operating margin increased to 23.1% from 7.4%, while non-GAAP operating margin expanded to 20.2% from 15.7%.
What 2026 guidance did The Hershey Company (HSY) provide?
Hershey now expects 2026 net sales growth of 4.5%–5% and organic net sales growth of 3%–3.5%. It guides reported EPS growth of 82%–89% and adjusted EPS growth of 32.5%–35%, implying adjusted diluted EPS of $8.36–$8.52.
How did The Hershey Company (HSY) segments perform in Q2 2026?
In Q2 2026, North America Confectionery net sales rose 4.2% to $2,173.6 million with segment margin at 32.5%. North America Salty Snacks net sales increased 22.9% to $387.8 million, while International net sales grew 5.7% to $225.9 million with a segment margin of (2.3)%.
What cost and investment plans did The Hershey Company (HSY) outline for 2026?
For 2026, Hershey expects an effective tax rate of 25%–27%, interest expense of $200–$210 million, and capital expenditures of $425–$475 million. It also targets approximately $100 million in savings from its Advancing Agility & Automation Initiative.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
THE HERSHEY CO MPANY
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices)
(Zip Code)
(717 ) 534-4200
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging Growth Company | ||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||
| Item 2.02. | Results of Operations and Financial Condition. | |||||||
On July 30, 2026, The Hershey Company (the “Company”) announced sales and earnings information for the second quarter ended June 28, 2026. A copy of the Company’s press release is furnished hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits. | |||||||||||||
| (d) | Exhibits. | |||||||||||||
| Exhibit Number | Description | |||||||||||||
99.1 | The Hershey Company Press Release dated July 30, 2026 | |||||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE HERSHEY COMPANY | ||||||||||||||
Date: July 30, 2026 | By: | /s/ Steven E. Voskuil | ||||||||||||
| Steven E. Voskuil Senior Vice President, Chief Financial Officer | ||||||||||||||
Exhibit 99.1
| FINANCIAL CONTACT: | MEDIA CONTACT: | |||||||||||||
| Anoori Naughton | Allison Kleinfelter | |||||||||||||
| anaughton@hersheys.com | akleinfelter@hersheys.com | |||||||||||||
Hershey Reports Second-Quarter 2026 Financial Results
HERSHEY, Pa., July 30, 2026 - 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
1
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.
2
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.
3
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.
4
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.
5
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.
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.
3 The 12-week period ending July 19, 2026 excludes the impact of the Easter shift.
6
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.
7
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.
8
| 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.
9
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).
10
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.
11
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.
12
| 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 | % | ||||||||||||||||||||||||
13
| 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 | % | |||||||||||||||||||||
14
| 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 | |||||||
15