April 30, 2026
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The Hershey Company (NYSE: HSY) reported first-quarter 2026 results above expectations, supported by higher pricing, brand strength, and improved profitability.
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Hershey is a packaged food company best known for chocolate and confectionery brands including Hershey’s, Reese’s, Kit Kat, and other snack products.
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The company reported adjusted EPS of $2.35, above estimates of $2.05, representing a 14.6% earnings surprise and 10.6% growth. Revenue came in at $3.10 billion, above estimates of $3.03 billion. Consolidated net sales increased 10.6% year-over-year, while organic constant currency sales rose 7.9%.

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Pricing Drove the Quarter

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The strongest driver was price realization, not volume growth.
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Hershey said organic constant currency sales increased 7.9%, driven by approximately 10 points of net price realization. Volume declined approximately 2 points, reflecting elasticity pressure in North America Confectionery and International.

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Margins Improved Despite Cost Pressure

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Reported gross margin rose to 39.4% from 33.7% a year earlier, helped by pricing, supply chain productivity, and transformation program savings.
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Adjusted gross margin fell 80 basis points to 40.4%, reflecting higher commodity and tariff-related costs that partly offset pricing gains.

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Guidance Remains Focused on Earnings Growth

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For full-year 2026, Hershey expects:
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• Net sales growth of 4% to 5%
• Organic net sales growth of 2.5% to 3.5%
• Reported EPS growth of 79% to 89%
• Adjusted EPS growth of 30% to 35%
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The company also expects approximately $100 million in savings from its Advancing Agility & Automation initiative.

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Market Focus

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Investors are likely to watch whether Hershey can maintain pricing power while managing volume declines.
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The key areas are:
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• consumer elasticity
• cocoa and commodity costs
• tariff-related cost pressure
• brand investment returns
• automation savings

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The Bigger Picture

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Hershey’s results show how consumer staples earnings can be driven by pricing power even when volume weakens.
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The quarter was not a clean demand-growth story. It was a pricing and margin management story.
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Platforms like LevelFields track earnings releases alongside activist investor stake, layoffs, corporate events, and dividends, helping investors identify when a company’s report includes multiple catalysts that can drive short-term stock moves.