Companies /Consumer Defensive

Hershey Company

NYSE: HSY Confectioners
$181.32
▼ $4.03 (−2.17%) today
Markets closed · 2:26am ET

Q2 2026 Earnings

Reported Jul 30, 2026, 6:48am ET · SEC source
$1.90
Beat +33.09%
EPS · est. $1.43
$2.8B
Beat +5.82%
Revenue · est. $2.6B
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%−2%0+2%Jul 30Jul 31report 6:48am ETearnings+1.5%−4.8%
−4%−2%0+2%Jul 30Jul 31earnings+1.5%−4.8%
HSY −4.8%S&P 500 +1.5%
−3%0+3%Jul 30Jul 31report 6:48am ETearnings+2.7%−4.8%
−3%0+3%Jul 30Jul 31earnings+2.7%−4.8%
HSY −4.8%NASDAQ +2.7%
−3%0+3%+6%Jul 29Aug 6report 6:48am ETearnings+4.9%+1.6%
−3%0+3%+6%Jul 29Aug 6earnings+4.9%+1.6%
HSY +1.6%S&P 500 +4.9%
−4%0+4%+8%Jul 29Aug 6report 6:48am ETearnings+7.2%+1.6%
−4%0+4%+8%Jul 29Aug 6earnings+7.2%+1.6%
HSY +1.6%NASDAQ +7.2%
−3.63%
Day of report
−1.23%
Next session
+3.27%
One week

Did HSY Beat Earnings? Q2 2026 Results

Hershey delivered a standout second quarter, posting adjusted EPS of $1.90 against a Wall Street consensus of $1.43, a beat of 33.09% that extended the chocolate maker's streak of exceeding EPS estimates to four consecutive quarters. Revenue climbed 6.6% year over year to $2.79 billion, clearing the $2.63 billion consensus by 5.82%, as aggressive pricing actions across all segments proved to be the dominant growth lever, contributing roughly 12 points to organic growth even as volume softened amid expected price elasticity. Gross margin expansion was equally striking, with adjusted gross margin rising 350 basis points to 41.6%, reflecting lower net commodity costs and supply chain productivity savings. Concerns heading into the print had centered on Hershey's ability to sustain pricing power without further volume erosion, and while those tensions remain real, the company narrowed its full-year outlook with increased confidence, now guiding for net sales growth of 4.5% to 5% and adjusted EPS of $8.36 to $8.52, implying growth of 32.5% to 35% over 2025's $6.31 base.

Key Takeaways
  • Net price realization of approximately 12 points drove organic growth across all segments
  • Lower net commodity costs improved margins
  • Supply chain productivity and Advancing Agility & Automation Initiative savings
  • LesserEvil acquisition contributed approximately 2.7 percentage points to total company growth
  • Derivative mark-to-market gains of $102.9 million in Q2 2026 versus losses of $200.7 million in Q2 2025
  • Adjusted gross margin expanded 350 basis points to 41.6%
  • Adjusted operating profit margin expanded 450 basis points to 20.2%

“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.”

Hershey CEO, on the earnings call

Forward Guidance & Outlook

Hershey narrowed its 2026 full-year outlook. Net sales growth is now expected at 4.5% to 5% (prior: 4% to 5%), with approximately 150 basis points from the LesserEvil acquisition. Organic net sales growth is expected at 3% to 3.5% (prior: 2.5% to 3.5%). Reported EPS growth is projected at 82% to 89% (prior: 79% to 89%). Adjusted EPS growth is projected at 32.5% to 35% (prior: 30% to 35%), implying adjusted EPS of $8.36 to $8.52 versus $6.31 in 2025. The outlook does not include potential future tariff rebates. The company expects an effective tax rate of 25% to 27%, interest expense of $200 million to $210 million, capital expenditures of $425 million to $475 million, and Advancing Agility & Automation Initiative savings of approximately $100 million.

HSY YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$800.0M$1.6B$2.4B$2.6B$2.8BRevenue$796.3M$1.3BGross Profit$192.8M$642.6MOperating Income$62.7M$457.7MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

HSY Revenue by Segment

North America Confectionery$2.2B+4.2%
North America Salty Snacks$387.8M+22.9%
International$225.9M+5.7%

Figures from SEC filings and company reports. Not investment advice.