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Hershey

Hershey (HSY) Q2 2026 Earnings

Reported Jul 30, 2026 at 6:48 AM ET · SEC Source

Q2 26 EPS

$1.90

BEAT +33.09%

Est. $1.43

Q2 26 Revenue

$2.79B

BEAT +5.82%

Est. $2.63B

vs S&P Since Q2 26

-4.5%

TRAILING MARKET

HSY -0.3% vs S&P +4.2%

Market Reaction

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 … Read more 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%

HSY 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.

24/7 Wall St

HSY YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

HSY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“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.”

— Kirk Tanner, Q2 2026 Earnings Press Release

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