The Hershey Company Reports Q3 2026 Results and Updates Full-Year Guidance

Executive Summary

On October 29, 2026, The Hershey Company (NYSE: HSY) filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) announcing financial results for its third quarter ended September 27, 2026, and updating its full-year 2026 financial guidance.

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Third-Quarter 2026 Financial Highlights

• Consolidated Net Sales: $3,275.5 million, up 3.0% year-over-year.
• Organic Constant Currency Sales: Increased 0.8%, driven by an 11% organic price realization offset by a 10% decline in volume/mix.
• Reported Net Income & Diluted EPS: $580.8 million, or $2.88 per diluted share, up 111.8% compared to the prior-year period.
• Adjusted Diluted EPS: $2.64, representing a 103.1% year-over-year increase.

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Segment Performance (Q3 2026)

1. North America Confectionery:
   • Reported net sales increased 1.6% (organic constant currency +1.6%).
   • Price realization was +13%, offset by a volume/mix decline of 11%.
2. North America Salty Snacks:
   • Reported net sales grew 22.3%, assisted by a 20.0% contribution from the acquisition of LesserEvil.
   • Organic constant currency growth was 2.3% (price +1%, volume/mix +1%).
3. International:
   • Reported net sales fell 7.5% (constant currency -9.7%; organic constant currency -9.7%).
   • Price realization contributed +4%, offset by a 14% decline in volume/mix.

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Updated Full-Year 2026 Guidance

• Net Sales Growth: Guided to ~5% (prior guidance: 4.5% to 5.0%), including a ~200 bps benefit from the LesserEvil acquisition.
• Organic Net Sales Growth: Guided to ~3% (prior guidance: 3.0% to 3.5%).
• Reported Diluted EPS Growth: Raised to 84%–90% ($8.00–$8.26), compared to prior guidance of 82%–89%.
• Adjusted Diluted EPS Growth: Raised to 36%–38.5% ($8.58–$8.74), compared to prior guidance of 32.5%–35.0%.
• Additional Projections:
  • Effective tax rate: ~25%
  • Interest expense: ~$200 million
  • Capital expenditures: ~$450 million
  • Advancing Agility & Automation Initiative savings: ~$100 million