The Hershey Co

Latest Results (29.08.2026):

The Hershey Co — second quarter of 2026: consolidated net sales were $2,787.3 million (up 6.6%) with organic, constant‑currency net sales up 3.6%. Reported net income was $457.7 million, or $2.26 per diluted share (a 629% increase year‑over‑year) and adjusted diluted EPS was $1.90 (up 57%). Results were driven by strong net price realization, lower net commodity costs, derivative mark‑to‑market gains and productivity savings, while volume declined and logistics costs rose. The company also narrowed its 2026 full‑year guidance and provided updated EPS and sales ranges.

Sales and profit snapshot

Q2 2026 net sales: $2,787.3M (+6.6%); six‑month net sales: $5,891.5M (+8.7%). Reported operating profit for Q2 was $642.6M (margin 23.1%), and reported gross profit was $1,263.3M (gross margin 45.3%).

EPS and comparability items

Q2 reported net income $457.7M, reported EPS (diluted) $2.26; adjusted EPS (diluted) $1.90. Q2 included items negatively impacting comparability of $79.1M pre‑tax (≈ $0.36 per share), including favorable derivative mark‑to‑market swings versus the prior year.

Margins and drivers

Reported gross margin jumped to 45.3% (vs. 30.5% a year ago) largely from net price realization, derivative gains and lower commodity costs; adjusted gross margin was 41.6% (+350 bps). Volume weakness (~‑8 points) was offset by ~12 points of net price realization; higher logistics and unfavorable mix partially offset margin gains.

Segment performance

North America Confectionery: sales $2,173.6M (+4.2%), segment income $705.8M (margin 32.5%). North America Salty Snacks: sales $387.8M (+22.9%, ~22 pts from LesserEvil acquisition), segment income $62.6M (margin 16.1%, down vs. prior year). International: sales $225.9M (+5.7%) but a segment loss of $5.1M, pressured by cost and advertising.

2026 outlook & guidance

Company narrowed full‑year guidance: net sales growth now 4.5%–5.0% (was 4%–5%), organic net sales 3.0%–3.5%, reported EPS growth 82%–89%, adjusted EPS growth 32.5%–35.0%. Projected 2026 reported EPS $7.89–$8.17 and adjusted EPS $8.36–$8.52. Other assumptions: effective tax rate ~25%–27%, interest expense ~$200–210M, capex ~$425–475M, and ~$100M incremental savings from Agility & Automation initiatives.

Balance sheet & other items

Q2 cash and equivalents $791.2M (down from year‑end), inventories $1,743.3M, total assets $13,973.1M. Long‑term debt ~ $4.685B. Management reiterated investments behind brands, merchandising and innovation while highlighting cost visibility and operating flexibility.