HERSHEY CO Q1 FY26 Results

Summary

The Hershey Company reported a strong start to 2026, with first-quarter consolidated net sales increasing by 10.6% to $3,104.2 million. This growth was supported by a 7.9% increase in organic, constant currency net sales and a significant contribution from the LesserEvil acquisition. Reported net income saw a substantial rise of 93.6% to $435.1 million, while adjusted diluted earnings per share grew by 12.4% to $2.35. The company reaffirmed its full-year 2026 financial outlook, indicating confidence in its strategic initiatives and continued performance.

Key Highlights

1. 1

   Consolidated net sales for the first quarter of 2026 increased by 10.6% to $3,104.2 million, driven by strong organic growth and the LesserEvil acquisition.

2. 2

   Reported net income surged by 93.6% to $435.1 million, or $2.13 per diluted share, compared to the prior year period.

3. 3

   Adjusted diluted earnings per share rose by 12.4% to $2.35, reflecting underlying business performance.

4. 4

   Reported operating profit increased significantly by 73.5% to $640.7 million, resulting in a reported operating profit margin of 20.6%, up 740 basis points.

5. 5

   Reported gross margin improved by 570 basis points to 39.4% in Q1 2026, primarily due to net price realization and lower derivative mark-to-market losses.

6. 6

   The North America Salty Snacks segment saw net sales grow by 26.0% to $350.1 million, with the LesserEvil acquisition contributing approximately 20 percentage points to this growth.

7. 7

   The company reaffirmed its 2026 full-year sales and earnings outlook, anticipating net sales growth of 4% to 5% and adjusted earnings per share growth of 30% to 35%.