01—Abstract
Summary
Summary of the 8-K filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
The Hershey Company (NYSE: HSY) reported second-quarter 2026 results for the quarter ended June 28, 2026, and narrowed its full-year 2026 outlook.
Consolidated net sales rose 6.6% to $2,787.3 milliona, with organic, constant currency net sales up 3.6%. Reported net income was $457.7 million, or $2.26 per diluted share, versus $62.7 million in the prior-year quarter, and adjusted diluted EPS was $1.90, an increase of 57.0%. Net price realization of about 12 points offset volume declines of about 8 points, with volume pressured by elasticity in North America Confectionery and International.
For the six months ended June 28, 2026, net sales were $5.89 billionb, up 8.7%, with organic, constant currency growth of 5.8%. Reported diluted EPS was $4.39 and adjusted diluted EPS was $4.25, an increase of 28.4%. Reported results were boosted by derivative mark-to-market gains of $102.9 million in the quarter.
North America Confectionery segment income rose 40.1% to $705.8 millionc, while North America Salty Snacks segment income fell 5.9% to $62.6 million and International swung to a segment loss of $5.1 million. For 2026, the company narrowed guidance: net sales growth is now 4.5% to 5% (previously 4% to 5%), organic net sales growth 3% to 3.5% (previously 2.5% to 3.5%), reported EPS growth 82% to 89%, and adjusted EPS growth 32.5% to 35% (previously 30% to 35%). Projected 2026 adjusted diluted EPS is $8.36 to $8.52.
The outlook excludes potential future tariff rebates. Management cited a fuller recovery in earnings and increased investment in brands, merchandising and innovation for the second half.
02—Key points
Key Highlights
- Net sales rose 6.6% to $2,787.3 million in Q2 2026; organic, constant currency net sales increased 3.6%, driven by about 12 points of net price realization and about 8 points of volume decline.
- Reported diluted EPS was $2.26 versus $0.31 a year earlier; adjusted diluted EPS was $1.90, up 57.0%.
- Reported operating profit was $642.6 million, a 233.3% increase, with reported operating profit margin of 23.1%; adjusted operating profit of $563.5 million rose 37.3%.
- North America Confectionery segment income rose 40.1% to $705.8 million on a 32.5% segment margin, while North America Salty Snacks segment income declined 5.9% to $62.6 million.
- International segment posted a loss of $5.1 million in Q2 2026, a decrease of $24.9 million versus the prior year, driven by higher raw material and manufacturing costs and advertising investment.
- 2026 outlook narrowed: net sales growth 4.5% to 5%, organic net sales growth 3% to 3.5%, adjusted EPS growth 32.5% to 35% (projected adjusted diluted EPS $8.36 to $8.52); guidance excludes potential future tariff rebates.
- Six-month net sales were $5.89 billion, up 8.7%, and reported diluted EPS was $4.39 versus $1.41; total assets were $13.97 billion at June 28, 2026.
03—Questions
Frequently Asked Questions
How did Hershey perform in the second quarter of 2026?
Net sales increased 6.6% to $2,787.3 million, with organic, constant currency growth of 3.6%. Reported net income was $457.7 million, or $2.26 per diluted share, and adjusted diluted EPS was $1.90, up 57.0%.
What changed in Hershey's 2026 full-year outlook?
The company narrowed its guidance: net sales growth is now 4.5% to 5% (from 4% to 5%), organic net sales growth 3% to 3.5% (from 2.5% to 3.5%), reported EPS growth 82% to 89% (from 79% to 89%), and adjusted EPS growth 32.5% to 35% (from 30% to 35%).
What drove the large increase in reported earnings?
The filing attributes the reported operating profit margin increase to favorable derivative mark-to-market gains, which totaled $102.9 million pre-tax in the quarter. Net price realization, lower net commodity costs and productivity program savings also contributed, partly offset by higher logistic expenses and capability and technology investments.
Which segments were strongest and weakest?
North America Confectionery was strongest, with net sales up 4.2% and segment income up 40.1%. North America Salty Snacks net sales rose 22.9% largely from the LesserEvil acquisition, but segment income fell 5.9%. International swung to a segment loss of $5.1 million on higher costs and advertising investment.
What did management say about volume and the second half?
Volume declined about 8 points in the quarter, primarily reflecting price elasticity in North America Confectionery and International, partially offset by growth in North America Salty Snacks. Management said the company enters the second half with momentum and increased investment behind brands, merchandising and innovation.
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