10-Q · April 30, 2026
Hershey Company reported a strong Q1 2026, with net sales of $3,104.2 million, a 10.6% increase from the previous year, while EPS rose to $2.13, up 93.6%. The company experienced growth across its North America…
Earnings analysis · 10-Q
HSY earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Hershey delivered a strong Q3, with revenue of $3,275.5 million and adjusted diluted EPS of $2.64 beating consensus estimates of $3,249.9 million and $2.11, respectively. Management raised full-year EPS growth guidance…
Read full summary
Hershey delivered a strong Q3, with revenue of $3,275.5 million and adjusted diluted EPS of $2.64 beating consensus estimates of $3,249.9 million and $2.11, respectively. Management raised full-year EPS growth guidance and set approximately 5% net sales growth guidance, supported by pricing, lower cocoa costs, productivity savings and tariff refunds. However, approximately 10 points of volume pressure, weaker international performance and the nonrecurring nature of approximately $0.22 of Q3 tariff refunds temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.64
What stood out
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Revenue beat and grew year over year
Q3 revenue was $3,275.5 million, exceeding the $3,249.9 million consensus estimate by $25.6 million, or approximately 0.8%. Revenue increased approximately 17.4% from $2.79 billion in Q2 2026 and approximately 3.0% from $3.18 billion in Q3 2025.
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Adjusted EPS materially exceeded estimates
Adjusted diluted EPS was $2.64 versus the $2.11 consensus estimate, a $0.53 or approximately 25.1% beat. EPS increased from $2.26 in Q2 2026 and $1.36 in Q3 2025.
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Full-year EPS outlook raised
The company raised reported EPS growth guidance to 84%-90% from 82%-89% and adjusted EPS growth guidance to 36%-38.5% from 32.5%-35%. The updated full-year EPS range is $8.58-$8.74.
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Sales outlook improved, with tariff benefit
Net sales growth guidance was increased to approximately 5% from 4.5%-5%, while organic sales growth guidance was approximately 3% versus 3%-3.5% previously. The projected EPS outlook includes approximately $0.22 of Q3 tariff refunds.
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Balance sheet remains net cash positive
The company reported a net cash position of $241 million at September 27, 2026, versus $707 million at December 31, 2025. The company also retained approximately $270 million under its December 2023 repurchase authorization and approved an additional $500 million authorization in June 2026.
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Lower cocoa prices may support costs
Average cocoa futures prices were $2.08 per pound in the first nine months of 2026, down approximately 43% from the 2025 average of $3.65 per pound. Open commodity derivative notional value was $646.0 million at September 27, 2026.
What to watch
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Pricing is pressuring consumer volume
Management indicated that volume declined approximately 10 points as pricing supported sales growth. This creates elasticity risk, particularly as the company noted that higher candy prices may pressure Halloween demand.
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International segment weakness
International performance was identified as a deterioration area, although the supplied filing text does not provide a quantified segment decline. The risk is material because the company’s overall approximately 5% net sales growth outlook depends partly on sustained segment performance.
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Tariff refunds may not recur
The updated EPS outlook includes approximately $0.22 of Q3 tariff refunds and excludes future tariff refunds, creating a potential earnings headwind if similar benefits do not recur.
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Foreign-exchange exposure remains material
The potential decline in fair value of foreign-currency forward contracts from a hypothetical 10% adverse market move was $31.5 million at September 27, 2026, versus $38.7 million at December 31, 2025.
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Commodity hedging coverage declined
Open commodity derivative notional value declined to $646.0 million from $973.1 million at December 31, 2025. Reduced hedging coverage could increase sensitivity to future commodity-price volatility despite the approximately 43% decline in average cocoa futures prices.
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Liquidity cushion narrowed
A hypothetical 100-basis-point increase in interest rates would have changed interest expense by approximately $3.3 million for the first nine months of 2026. Net cash also declined to $241 million from $707 million at year-end 2025.
Management's outlook
Management raised reported EPS growth guidance to 84%-90% from 82%-89% and adjusted EPS growth guidance to 36%-38.5% from 32.5%-35%. Net sales growth guidance is approximately 5%, versus 4.5%-5% previously, while organic sales growth is approximately 3%, versus 3%-3.5% previously. Projected EPS includes approximately $0.22 of Q3 tariff refunds and excludes future tariff refunds.
Earlier filings 4
10-K · February 17, 2026
Hershey closed 2025 with broad top-line resilience, completed the LesserEvil acquisition on November 18, 2025, and generated strong cash flow, while margins showed mid-year compression with recovery into Q4. The company…
10-Q · July 30, 2025
Hershey reported Q2 net sales of $2,614,718,000 (up $540,238,000 vs Q2 2024) but saw significant margin and earnings compression: gross profit fell to $796,273,000 (30.5% gross margin) and diluted EPS declined to $0.31…
10-Q · May 1, 2025
Hershey reported Q1 net sales of $2,805,419 (in thousands) and net income of $224,203, a material decline versus Q1 2024. Gross profit and operating profit deteriorated sharply (gross profit $944,267; operating profit…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.