HSY · The Hershey Company

The Hershey Company reported strong first-quarter 2026 results, with consolidated net sales increasing 10.6% to $3,104.2 million, driven by net price realization (approximately 10 points) and a 2.0-point benefit from the LesserEvil acquisition. Organic constant currency net sales grew 7.9%, with volume declining 2% due to price elasticity and one fewer shipping day, partially offset by favorable shipment timing. Reported net income surged 93.6% to $435.1 million, or $2.13 per diluted share, largely due to lower derivative mark-to-market losses compared to the prior year. Adjusted EPS rose 12.4% to $2.35, exceeding the prior year's $2.09. Reported gross margin expanded 570 basis points to 39.4%, while adjusted gross margin contracted 80 basis points to 40.4% due to higher commodity and tariff-related costs. Reported operating profit increased 73.5% to $640.7 million, with margin up 740 bps to 20.6%; adjusted operating profit grew 12.9% to $686.5 million, with margin up 40 bps to 22.1%. Segment performance varied: North America Confectionery net sales rose 8.3% with segment income up 13.8% and margin expanding 150 bps to 31.8%; North America Salty Snacks net sales increased 26.0% (20 points from acquisition) but segment income fell 18.1% due to higher supply chain costs and marketing investments, margin contracting 530 bps to 9.8%; International net sales grew 16.1% but segment income declined $13.4 million, margin down 680 bps to 5.8%. Management highlighted strong retail takeaway for Hershey's and Reese's brands, with non-seasonal lifts of 11% and 10% respectively. The company reaffirmed its 2026 full-year guidance: net sales growth of 4-5%, organic net sales growth of 2.5-3.5%, reported EPS growth of 79-89%, and adjusted EPS growth of 30-35%. The outlook reflects confidence in core growth and strategic investments in brand, innovation, and technology.