Hershey Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.67%.
Did HSY Beat Earnings? Q2 2025 Results
Hershey posted a decisive Q2 2025 beat on both the top and bottom lines, with adjusted EPS of $1.21 clearing the $1.00 consensus by 20.42% and revenue of $2.61 billion topping estimates by 3.61%, though the headline numbers demand careful context. The 26.0% year-over-year revenue surge was largely a timing artifact, as the prior-year quarter had been suppressed by planned inventory reductions tied to an ERP system implementation, with Easter's later calendar placement and early Halloween shipments providing additional lift; on a first-half basis, sales growth was a far more modest 1.70%. Beneath the revenue strength, cocoa-driven commodity inflation hammered profitability, compressing adjusted gross margin by 510 basis points and pushing full-year adjusted EPS guidance to $5.81 to $6.00, a 36% to 38% decline, worse than prior mid-30s% expectations. With the company separately notifying retailers of low double-digit price increases on core chocolate products to offset persistent cocoa cost pressures, the path to margin recovery remains a central concern heading into the second half.
- Lap of planned inventory reductions from Q2 2024 ERP system implementation driving volume recovery
- Later Easter timing in 2025 versus 2024 shifted seasonal sales into Q2
- Earlier shipment of Halloween seasonal orders versus prior year
- Net price realization of approximately 5 points across segments
- Supply chain productivity and Advancing Agility & Automation Initiative savings
- Strong seasonal consumption and CMG share gains of 90 basis points
“We are pleased with our second-quarter results and the momentum we are seeing in our business. Investments in our brands and impactful innovation, coupled with effective execution, are driving solid sales and share gains across both our U.S. confection and salty snacking business.”
Hershey CEO, on the earnings call
Forward Guidance & Outlook
Hershey maintained its full-year 2025 net sales growth outlook of at least 2% but worsened its earnings expectations. Adjusted EPS is now projected at $5.81 to $6.00, representing a decline of 36% to 38% (previously down mid-30s% range). Reported EPS is expected to decline approximately 50% (previously down high-40% range). Full-year tariff expense is estimated at $170 to $180 million. The company expects an adjusted effective tax rate of approximately 24%, interest expense of approximately $200 million, and capital expenditures of $425 to $450 million. Advancing Agility & Automation Initiative savings are now targeted at approximately $150 million, up from $125 million previously. Guidance excludes the proposed acquisition of LesserEvil.
HSY YoY Financials
HSY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.