Hershey Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did HSY Beat Earnings? Q3 2025 Results
Hershey posted a stronger-than-expected third quarter, with adjusted EPS of $1.30 beating the $1.06 consensus by 22.21%, even as that figure represented a steep 44.4% decline from a year ago, underscoring the tension at the heart of the company's current story. Revenue of $3.18 billion rose 6.5% year-over-year and edged past the $3.12 billion consensus by 2.13%, powered by roughly 6 points of net price realization across its portfolio. The gains, however, were significantly offset by commodity and tariff pressures that compressed reported gross margin by 870 basis points to 32.6%, with an estimated $160 million to $170 million in full-year tariff expense weighing heavily on profitability. A standout bright spot was the North America Salty Snacks segment, where SkinnyPop and Dot's Homestyle Pretzels drove 10% sales growth. Looking ahead, Hershey raised its full-year net sales growth outlook to approximately 3% and narrowed adjusted EPS guidance to $5.90 to $6.00, signaling cautious confidence despite a projected 36% to 37% annual earnings decline.
- Net price realization of approximately 6 points drove organic constant currency net sales growth of 6.2%
- North America Salty Snacks volume increased approximately 11 points driven by promotional programming, innovation, and media investments
- Strong innovation and growth in core confectionery brands partially offset price elasticity impact
- International segment benefited from double-digit growth in Brazil and favorable shipment timing in Europe and Mexico
- Advancing Agility & Automation Initiative expected to deliver approximately $150 million in savings
“Third quarter results surpassed expectations, as strong innovation, strategic brand investments, and market leading execution drove momentum across business segments. Based on our results year-to-date, we are raising our full year outlook for net sales and earnings per share.”
Hershey CEO, on the earnings call
Forward Guidance & Outlook
Hershey raised its full-year 2025 outlook. Net sales growth guidance was increased to approximately 3% (from prior guidance of 'up at least 2%'), including an approximate 40 basis point benefit from the Sour Strips acquisition and an approximate 30 basis point headwind from foreign currency. Reported EPS is now projected to decline 48% to 50% (previously down ~50%), equating to $5.48 to $5.72. Adjusted EPS guidance was narrowed to the upper half of the prior range at $5.90 to $6.00, representing a decline of 36% to 37% (prior range was down 36% to 38%). The company expects tariff expense of approximately $160 million to $170 million, an adjusted effective tax rate of approximately 26%, interest expense of approximately $195 million, capital expenditures of approximately $425 million, and Advancing Agility & Automation Initiative savings of approximately $150 million. Guidance excludes the proposed acquisition of LesserEvil.
HSY YoY Financials
HSY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.