The strong beat and reaffirmed guidance suggest Hershey is successfully passing through price increases to offset commodity and tariff costs, though volume declines bear watching. The stock should react positively to the EPS beat and maintained outlook. Monitor Q2 for volume elasticity trends and any tariff escalation that could pressure margins.
Price Chart
Executive Summary
Hershey reported Q1 2026 net sales of $3,104.2M (+10.6% YoY) and adjusted EPS of $2.35 (+12.4% YoY), beating consensus estimates of $2.04 EPS and $3.03B revenue. The company reaffirmed its full-year 2026 guidance for 4-5% net sales growth and 30-35% adjusted EPS growth, signaling confidence despite volume declines and tariff headwinds.
Key Financial Metrics
Key Facts
- Q1 2026 net sales $3,104.2M, +10.6% YoY vs $2,805.4M
- Adjusted EPS $2.35, +12.4% YoY vs $2.09
- Reported EPS $2.13, +93.6% YoY vs $1.10 (boosted by lower derivative mark-to-market losses)
- Organic constant currency net sales +7.9%, driven by 10 points of price realization, partially offset by 2 points volume decline
- North America Confectionery segment sales +8.3% to $2,489.9M, segment margin +150bps to 31.8%
- North America Salty Snacks sales +26.0% (20pts from LesserEvil acquisition), but segment income -18.1% due to supply chain costs and marketing investment
- International segment sales +16.1% to $264.2M, but segment income -46.8% due to commodity costs and advertising
- Reported gross margin 39.4% vs 33.7% (+570bps); adjusted gross margin 40.4% vs 41.2% (-80bps) due to commodity and tariff costs
- Reported operating profit $640.7M, +73.5%; adjusted operating profit $686.5M, +12.9%
- Reaffirmed FY2026 guidance: net sales growth 4-5%, organic net sales growth 2.5-3.5%, adjusted EPS growth 30-35%
- FY2026 adjusted EPS guidance range $8.20-$8.52 vs 2025 $6.31
- Volume declined ~2% overall, with North America Confectionery volume -4% due to price elasticity
Financial Impact
Q1 adjusted EPS of $2.35 beat consensus of $2.04 by ~15.2%; revenue of $3.104B beat consensus of $3.03B by ~2.4%
Risk Factors
- Volume declining ~2% overall and ~4% in core Confectionery segment signals price elasticity pressure
- Adjusted gross margin contracted 80bps YoY to 40.4% due to commodity and tariff costs
- Salty Snacks and International segments saw significant segment income declines (-18.1% and -46.8% respectively)
- Tariff and commodity cost headwinds could intensify, pressuring full-year margins
- CMG market share declined due to increased competition
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-028569 |
| Document: hsy-20260430.htm | 0001628280-26-028569 |
| Document: 0001628280-26-028569-index-headers.html | 0001628280-26-028569 |
| Document: 0001628280-26-028569-index.html | 0001628280-26-028569 |
| Document: 0001628280-26-028569.txt | 0001628280-26-028569 |
| 8-K Data (Synthetic) | 0001628280-26-028569 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 17, 2026 6w ago | Insider Cluster | $183.45 $170.79 | ▼ −6.90% | ▼ −5.59% | $160.19 (−12.68%) |
Aug 12, 2026 7w ago | Insider Cluster | $184.23 $174.34 | ▲ +5.37% | ▲ +3.47% | $160.19 (+13.05%) |
Aug 10, 2026 7w ago | Insider Cluster | $181.98 $172.19 | ▼ −5.38% | ▼ −4.32% | $160.19 (−11.97%) |
Aug 10, 2026 7w ago | Insider Cluster | $181.98 $172.19 | ▼ −5.38% | ▼ −4.32% | $160.19 (−11.97%) |
Aug 7, 2026 8w ago | Insider Cluster | $182.75 $173.27 | ▼ −5.19% | ▼ −4.27% | $160.19 (−12.34%) |
Aug 6, 2026 8w ago | Insider Cluster | $183.02 $175.06 | ▼ −4.35% | ▼ −4.95% | $160.19 (−12.47%) |
Jul 30, 2026 9w ago | 8-K | $177.23 $181.32 | ▲ +2.31% | ▼ −1.66% | $160.19 (−9.61%) |
Jul 30, 2026 9w ago | Press Release | $177.23 $181.32 | ▲ +2.31% | ▼ −1.66% | $160.19 (−9.61%) |
Jul 29, 2026 9w ago | Insider Cluster | $177.23 $181.32 | ▲ +2.31% | ▼ −1.66% | $160.19 (−9.61%) |
Jul 27, 2026 9w ago | Insider Cluster | $183.39 $187.18 | ▲ +2.07% | ▼ −1.31% | $160.19 (−12.65%) |
US Market Status
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