Hershey Raises 2026 Earnings Outlook as Adjusted EPS More Than Doubles

Hershey raised its 2026 adjusted earnings outlook on Thursday after third-quarter adjusted EPS more than doubled, as price increases of about 11 points and tariff refunds lifted margins even though volume fell about 10 points.

The chocolate and snacks maker now expects full-year adjusted EPS growth of 36% to 38.5%, up from 32.5% to 35%, according to the earnings release it filed with an 8-K on Thursday. That equals adjusted EPS of $8.58 to $8.74, and includes about $0.22 from tariff refunds received in the third quarter and $0.03 in the second. It trimmed its organic net sales growth forecast to about 3%, from 3% to 3.5%, and now sees reported net sales growth of about 5%.

Price up, volume down

Third-quarter net sales rose 3.0% to $3,275.5 million. Organic, constant currency net sales grew 0.8%, as about 11 points of net price realization outweighed a roughly 10-point volume decline that the company tied to elasticity in North America Confectionery and International, shipment timing and planned portfolio optimization. The LesserEvil acquisition added 2.1 points.

Adjusted EPS rose 103.1% to $2.64. Reported net income was $580.8 million, or $2.88 a diluted share, up 111.8%. Adjusted gross margin widened 1,090 basis points to 42.7%, helped by pricing, productivity savings, tariff refunds and lower net commodity costs.

"Our second-half demand creation initiatives are gaining momentum, even as consumers grow more cautious," President and CEO Kirk Tanner said in the release.

Candy margins jump, snacks and International lag

North America Confectionery net sales rose 1.6% to $2.657 billion, with about 13 points of price offset by an 11-point volume decline. Segment income climbed 66.2% to $949.7 million, and segment margin widened 1,400 basis points to 35.8%.

Hershey said its U.S. candy, mint and gum retail takeaway rose 0.8% in the 12 weeks ended Sept. 27 and that its share in the category declined, reflecting a comparison against a significant Reese innovation launch a year earlier.

North America Salty Snacks sales jumped 22.3% to $392.7 million, about 20 points of it from LesserEvil, but segment income fell 17.9% to $47.4 million on higher freight, logistics, manufacturing and commodity costs. International sales fell 7.5% to $226.4 million, and the segment posted a loss of $30.0 million.

Spending to drive demand

Advertising and related consumer marketing expenses rose 17.1% in the quarter, and selling, marketing and administrative expenses increased 15.4% overall, driven partly by capability and technology investments. Adjusted operating profit rose 78.5% to $754.0 million, a 23.0% margin.

For the full year, Hershey expects capital expenditures of about $450 million, interest expense of about $200 million and about $100 million of savings from its Advancing Agility & Automation Initiative. The outlook does not include potential future tariff refunds.

By the numbers

• $3,275.5 million: third-quarter net sales, up 3.0%
• $2.64: adjusted EPS, up 103.1%
• About 11 points: net price realization
• About 10 points: volume decline
• $8.58 to $8.74: new 2026 adjusted EPS outlook

Sources

1. Hershey Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001628280-26-068046)

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