Hershey Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did HSY Beat Earnings? Q4 2025 Results
Hershey delivered a stronger-than-expected fourth quarter, with adjusted EPS of $1.71 beating the $1.40 consensus estimate by 21.77% and revenue of $3.09 billion topping expectations by 3.83% on 7.0% year-over-year growth, even as the company navigated one of its most turbulent margin environments in recent memory. The headline driver of distortion was the lap of $264.70 million in derivative mark-to-market gains recorded in Q4 2024, which contributed to a reported gross margin collapse of 17.0 percentage points to 37.0% and a 52.6% drop in reported operating profit to $444.91 million. North America Salty Snacks was a notable bright spot, with net sales jumping 28.0% to $356.96 million, partly fueled by the LesserEvil acquisition. In a consumer environment where peers like General Mills have already lowered guidance on demand pressure, Hershey's 2026 outlook of 4% to 5% net sales growth and adjusted EPS of $8.20 to $8.52, representing 30% to 35% growth, signals management's confidence that pricing gains and gross margin recovery will reassert themselves.
- Net price realization of approximately 9% in Q4 driving organic revenue growth
- North America Salty Snacks organic volume growth of approximately 14 points
- One additional shipping day in Q4 2025 versus prior year
- LesserEvil acquisition contributing approximately 10 points to Salty Snacks segment growth
- U.S. CMG retail takeaway increased 6.5%, in-line with category growth
- SkinnyPop ready-to-eat popcorn retail sales increased over 8%
- Dot's Homestyle Pretzels delivered retail sales growth of over 20%
“As we enter 2026, we have strong conviction in the momentum of our business. I'm proud of how our teams have navigated a challenging environment, demonstrating operational excellence, impactful innovation, and skillful execution that is driving real results. We are building the capabilities and brand investments that position us for continued success, with a focus on strengthening our foundation, improving profitability, and advancing the next phase of our strategy to deliver long-term growth and value creation for our shareholders.”
Hershey CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, Hershey expects reported net sales to increase 4% to 5%, driven by net price realization, increased innovation, cultural and seasonal activations, and advertising investment. Acquisitions are estimated to contribute approximately 150 basis points to net sales growth. Foreign currency impact is anticipated to be neutral. Reported EPS is expected in the range of $7.77 to $8.19 (up 79-89% vs 2025), and adjusted EPS is expected in the range of $8.20 to $8.52 (up 30-35% vs 2025). The company expects an effective tax rate of 25-27%, interest expense of $200-$210 million, capital expenditures of $425-$475 million, and Advancing Agility & Automation Initiative savings of approximately $100 million. Sales growth and gross margin recovery are expected to more than offset increased strategic investment in brands, capabilities and technology, and higher interest expense.
HSY YoY Financials
HSY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.