Hershey beats Q2 sales estimates, raises 2026 sales growth guidance

The Hershey

30/07/2026 11:56

Overview
U.S. confectionery and snacks maker's Q2 sales rose 6.6%, beating analyst expectations
Adjusted EPS for Q2 increased 57% to $1.90, beating analyst expectations
Company raised full-year 2026 sales and adjusted EPS growth guidance

Outlook
Hershey expects 2026 net sales growth outlook of 4.5%-5%
Company expects 2026 organic net sales growth of 3%-3.5%
Hershey sees 2026 adjusted EPS between $8.36 and $8.52

Result Drivers
PRICE INCREASES - Net price realization drove sales growth across segments, especially in North America Confectionery, though volume declined due to price elasticity
ACQUISITION IMPACT - The LesserEvil acquisition contributed 2.7 percentage points to total company sales growth and 22 points to Salty Snacks segment growth
COST SAVINGS & LOWER COMMODITY COSTS - Gross margin gains were driven by lower net commodity costs and productivity program savings, which more than offset higher logistics expenses and unfavorable mix

Company press release: ID:nPn3dd4Qda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$2.79 bln
$2.63 bln (17 Analysts)
Q2 Adjusted EPS
Beat
$1.90
$1.42 (17 Analysts)
Q2 EPS
 
$2.26
 
Q2 Net Income
 
$457.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "hold"
Wall Street's median 12-month price target for Hershey Co is $208.00, about 13.1% above its July 29 closing price of $183.91
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads
July 28 - Oreo maker Mondelez beats second-quarter estimates on steady demand
July 28 - Family-owned companies have big appetites for US snack M&A
July 28 - Coca-Cola Q2 revenue beats on demand for sodas

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)