{"success":true,"data":{"pressRelease":{"id":"103306","rtpr_id":"nPn3dd4Qda","ticker":"HSY","exchange":"NYSE","all_tickers":["HSY"],"title":"Hershey Reports Second-Quarter 2026 Financial Results","author":"PR Newswire","published_at":"2026-07-30T10:45:00.935Z","article_body":"Hershey Reports Second-Quarter 2026 Financial Results\n\nPR Newswire\n\nHERSHEY, Pa., July 30, 2026\n\nHERSHEY, Pa., July 30, 2026 /PRNewswire/ -- The Hershey Company (NYSE: HSY)\ntoday announced net sales and earnings for the second quarter ended June 28,\n2026 and updated its 2026 sales and earnings outlook.\n\n\"We delivered a strong first half, with reported net sales up 8.7%, organic\nnet sales up 5.8% and meaningful earnings recovery. We enter the second half\nwith momentum, compelling growth plans, and increased investment behind our\nbrands, merchandising, and innovation. With cost visibility and operating\nflexibility, we are well positioned to navigate dynamic markets and deliver on\nour full-year financial commitments,\" said Kirk Tanner, The Hershey Company\nPresident and Chief Executive Officer.\n\nSecond-Quarter 2026 Financial Results Summary(1)\n\n * Consolidated net sales of $2,787.3 million, an increase of 6.6%.\n * Organic, constant currency net sales increased 3.6%.\n * Reported net income of $457.7 million, or $2.26 per share-diluted, an increase\nof 629.0%.\n * Adjusted earnings per share-diluted of $1.90, an increase of 57.0%.\nSix Months Ended 2026 Financial Results Summary(2)\n\n * Consolidated net sales of $5,891.5 million, an increase of 8.7%.\n * Organic, constant currency net sales increased 5.8%.\n * Reported net income of $892.8 million, or $4.39 per share-diluted, an increase\nof 211.3%.\n * Adjusted earnings per share-diluted of $4.25, an increase of 28.4%. (1) All comparisons for the second quarter of 2026 are with respect to the\n second quarter ended June 29, 2025\n (2) All comparisons for the six months ended 2026 are with respect to the six\n months ended June 29, 2025\n\n \n\n2026 Full-Year Financial Outlook\n\nThe Company is narrowing its net sales growth, organic net sales growth,\nreported earnings per share and adjusted earnings per share outlook for the\nyear. This outlook does not include potential future tariff rebates.\n 2026 Full-Year Outlook Prior Guidance Current Guidance\n Net sales growth* 4% to 5% 4.5% to 5%\n Organic net sales growth 2.5% to 3.5% 3% to 3.5%\n Reported earnings per share growth 79% to 89% 82% to 89%\n Adjusted earnings per share growth 30% to 35% 32.5% to 35%\n\n *Reflects an approximately 150 basis point benefit from the 2025 acquisition\n of LesserEvil\n\n \n\nThe Company also expects:\n\n * A reported and adjusted effective tax rate in the range of approximately 25%\nto 27%;\n * Other expense, which primarily reflects periodic benefit costs relating to\npension and other post-retirement benefit plans, of approximately $10 million;\n * Interest expense of approximately $200 million to $210 million;\n * Capital expenditures in the range of approximately $425 million to $475\nmillion; and\n * Advancing Agility & Automation Initiative savings of approximately $100\nmillion.\nBelow is a reconciliation of current projected 2026 and full-year 2025\nearnings per share-diluted calculated in accordance with U.S. generally\naccepted accounting principles (GAAP) to non-GAAP adjusted earnings per\nshare-diluted:\n 2026 (Projected) 2025\n Reported EPS – Diluted $7.89 - $8.17 $4.34\n Derivative Mark-to-Market Losses — $2.08\n Business Realignment Activities 0.30 - 0.35 $0.29\n Acquisition and Integration-Related Activities 0.18 - 0.25 $0.20\n Long-Lived Asset Impairment Charges — $0.03\n Tax Effect of All Adjustments Reflected Above $(0.13) $(0.63)\n Adjusted EPS – Diluted $8.36 - $8.52 $6.31\n\n \n\nAdjusted 2026 projected earnings per share-diluted, as presented above, does\nnot include the impact of mark-to-market gains and losses on our commodity\nderivative contracts that are reflected within corporate unallocated expense\nin segment results until the related inventory is sold since we are not able\nto forecast the impact of the market changes.\n\nSecond-Quarter 2026 Components of Net Sales Growth\n\nA reconciliation between reported net sales growth rates and organic, constant\ncurrency net sales growth rates, along with the contribution from net price\nrealization and volume, is provided below:\n Three Months Ended June 28, 2026\n Percentage Impact of Percentage Impact of Percentage Organic Organic\n Change as Foreign Change on Acquisition Change on Price Volume/Mix\n Reported Currency Constant Organic\n(Rounded)*\n(Rounded)*\n Exchange Currency Constant\n Basis Currency\n Basis\n North America Confectionery 4.2 % — % 4.2 % — % 4.2 % 14 % (10) %\n\n North America Salty Snacks 22.9 % — % 22.9 % 22.3 % 0.6 % (3) % 4 %\n\n International 5.7 % 3.6 % 2.1 % — % 2.1 % 10 % (8) %\n\n Total Company 6.6 % 0.3 % 6.3 % 2.7 % 3.6 % 12 % (8) %\n\n *Percentage changes may not compute directly as shown due to rounding of\n amounts presented above.\n\n \n Six Months Ended June 28, 2026\n Percentage Impact of Percentage Impact of Percentage Organic Organic\n Change as Foreign Change on Acquisition Change on Price Volume/Mix\n Reported Currency\nConstant Organic\n(Rounded)*\n(Rounded)*\n Exchange\nCurrency Constant\n Basis Currency\n Basis\n North America Confectionery 6.3 % 0.1 % 6.2 % — % 6.2 % 13 % (7) %\n\n North America Salty Snacks 24.4 % — % 24.4 % 21.4 % 3.0 % (1) % 4 %\n\n International 11.1 % 5.3 % 5.8 % — % 5.8 % 11 % (5) %\n\n Total Company 8.7 % 0.6 % 8.1 % 2.3 % 5.8 % 11 % (5) %\n\n *Percentage changes may not compute directly as shown due to rounding of\n amounts presented above.\n\n \n\nThe Company presents certain percentage changes in net sales on a constant\ncurrency basis, which excludes the impact of foreign currency exchange. To\npresent this information for historical periods, current period net sales for\nentities reporting in currencies other than the U.S. dollar are translated\ninto U.S. dollars at the average monthly exchange rates in effect during the\ncorresponding period of the prior fiscal year, rather than at the actual\naverage monthly exchange rates in effect during the current period of the\ncurrent fiscal year. As a result, the foreign currency impact is equal to the\ncurrent year results in local currencies multiplied by the change in the\naverage foreign currency exchange rate between the current fiscal period and\nthe corresponding period of the prior fiscal year.\n\nSecond-Quarter 2026 Consolidated Results\n\nConsolidated net sales increased 6.6% to $2,787.3 million in the second\nquarter of 2026. Organic, constant currency net sales increased 3.6%, driven\nby net price realization of approximately 12 points. Volume declined\napproximately 8 points primarily reflecting elasticity impacts in North\nAmerica Confectionery and International, partially offset by growth in North\nAmerica Salty Snacks. The impact of the LesserEvil acquisition was a 2.7 point\nbenefit, while the foreign exchange benefit was 0.3 points in the second\nquarter.\n\nReported gross margin was 45.3% in the second quarter of 2026, compared to\n30.5% in the second quarter of 2025, an increase of 1,480 basis points. The\nreported gross margin increase was driven by net price realization, derivative\nmark-to-market gains, lower net commodity costs, and productivity program\nsavings, which more than offset higher logistic expenses and unfavorable mix.\nAdjusted gross margin was 41.6% in the second quarter of 2026, an increase of\n350 basis points compared to the second quarter of 2025, driven by net price\nrealization, lower net commodity costs, and productivity program savings,\nwhich more than offset higher logistic expenses and unfavorable mix.\n\nSelling, marketing and administrative expenses increased 2.9% in the second\nquarter of 2026 versus the second quarter of 2025. Selling, marketing and\nadministrative expenses, excluding advertising and related consumer marketing,\nincreased 6.0% versus the second quarter of 2025, driven by higher capability\nand technology investments, partially offset by lower incentive compensation.\nAdvertising and related consumer marketing expenses decreased 3.3% in the\nsecond quarter of 2026 versus the same period last year, primarily due to\nefficiencies and timing of non-working media investment in North America\nConfectionery.\n\nSecond quarter 2026 reported operating profit was $642.6 million, an increase\nof 233.3% versus the second quarter of 2025, resulting in a reported operating\nprofit margin of 23.1%, an increase of 1,570 basis points versus the prior\nyear period. Adjusted operating profit of $563.5 million increased 37.3%\nversus the second quarter of 2025. Adjusted operating profit margin of 20.2%\nincreased 450 basis points versus the second quarter of 2025. The reported\noperating profit margin increase reflects favorable derivative mark-to-market\ngains. Reported and adjusted operating profit margin increases reflect net\nprice realization, lower net commodity costs, and productivity program savings\nwhich more than offset higher logistic expenses and capability and technology\ninvestments.\n\nThe reported effective tax rate in the second quarter of 2026 was 22.2%, a\ndecrease of 3,570 basis points versus the second quarter of 2025. The reported\neffective tax rate decrease was driven by the impact of commodity hedges on\nforeign rate differentials and a one-time increase in tax reserves in the\nprior year period. The adjusted effective tax rate was 24.2%, a decrease of\n860 basis points versus the second quarter of 2025. The adjusted effective tax\nrate for the second quarter of 2026 reflects a one-time increase in tax\nreserves in the prior year period.\n\nThe Company's second-quarter 2026 results, as prepared in accordance with\nGAAP, included items negatively impacting comparability of $79.1 million, or\n$0.36 per share-diluted. For the second quarter of 2025, items positively\nimpacting comparability totaled $217.7 million, or $0.90 per share-diluted.\n\nThe following table presents a summary of items impacting comparability in\neach of the second quarter and six-months ended 2026 and 2025 periods (see\nAppendix I for additional information):\n Pre-Tax (millions) Earnings Per Share-Diluted\n Three Months Ended Three Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n\n Derivative Mark-to-Market (Gains) Losses $ (102.9) $ 200.7 $ (0.52) $ 0.98\n Business Realignment Activities 8.4 15.1 0.04 0.07\n Acquisition and Integration-Related Activities 15.4 1.9 0.08 0.01\n Tax Effect of All Adjustments Reflected Above — — 0.04 (0.16)\n $ (79.1) $ 217.7 $ (0.36) $ 0.90\n\n Totals may not compute directly as shown due to rounding of amounts presented\n above.\n\n \n Pre-Tax (millions) Earnings Per Share-Diluted\n Six Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n\n Derivative Mark-to-Market (Gains) Losses $ (72.7) $ 412.2 $ (0.37) $ 2.04\n Business Realignment Activities 21.7 41.0 0.11 0.20\n Acquisition and Integration-Related Activities 17.7 3.5 0.09 0.02\n Tax Effect of All Adjustments Reflected Above — — 0.03 (0.36)\n $ (33.3) $ 456.6 $ (0.14) $ 1.90\n\n Totals may not compute directly as shown due to rounding of amounts presented\n above.\n\n \n\nThe following are comments about segment performance for the second quarter of\n2026 versus the prior year period. See the schedule of supplementary\ninformation within this press release for additional information on segment\nnet sales and profit.\n\nNorth America Confectionery\n\nHershey's North America Confectionery segment net sales were $2,173.6 million\nin the second quarter of 2026, an increase of 4.2% versus the same period last\nyear. Organic, constant currency net sales increased 4.2%, driven by\napproximately 14 points of net price realization. Volume declined\napproximately 10 points reflecting price elasticity and normal\nquarter-to-quarter shipment variability, partially offset by retailer\ninventory replenishment.\n\nHershey's U.S. candy, mint and gum (CMG) retail takeaway for the 12-week\nperiod ended July 19, 2026(3) in the multi-outlet plus convenience store\nchannels (MULO+ w/ Convenience) increased 3.7%. For this period, Hershey's CMG\nshare declined compared to the prior year due to increased competitive\ninnovation.\n\nThe North America Confectionery segment reported segment income of $705.8\nmillion in the second quarter of 2026, an increase of 40.1% versus the prior\nyear period, resulting in a segment margin of 32.5% in the quarter, an\nincrease of 830 basis points. The segment income and segment margin increases\nwere driven by net price realization, lower net commodity costs, and supply\nchain productivity and transformation program savings, partially offset by\nhigher logistic expenses.\n (3) The 12-week period ending July 19, 2026 excludes the impact of the Easter\n shift.\n\n \n\nNorth America Salty Snacks\n\nHershey's North America Salty Snacks segment net sales were $387.8 million in\nthe second quarter of 2026, an increase of 22.9% versus the same period last\nyear. The acquisition of LesserEvil contributed approximately 22 percentage\npoints to segment growth in the second quarter of 2026. Organic, constant\ncurrency net sales increased 0.6%. Volume increased approximately 4 points,\nbelow expectations, as strong innovation and velocity gains were partly offset\nby execution challenges on multipacks and Dot's pretzels. Net price\nrealization was an approximate 3 point headwind due to higher trade investment\nbehind new item launches.\n\nHershey's U.S. salty snacks retail takeaway for the 12-week period ended June\n28, 2026 in MULO+ w/ Convenience, excluding LesserEvil, increased 6.5% versus\nthe prior year period. This led to further gains in salty snack market share.\nOrganic, constant currency net sales trailed retail takeaway due to supply\nlimitations and the planned reduction of sales to private label customers.\n\nNorth America Salty Snacks segment income was $62.6 million in the second\nquarter of 2026, a decrease of 5.9% versus the second quarter of 2025, driven\nby higher logistic costs, lower net price realization, increased consumer\nmarketing investments, and unfavorable mix, which more than offset benefits\nfrom supply chain productivity and higher volume. This resulted in a segment\nmargin of 16.1%, a decrease of 500 basis points versus the prior year period.\n\nInternational\n\nSecond quarter 2026 net sales for Hershey's International segment increased\n5.7% versus the same period last year to $225.9 million. Organic, constant\ncurrency net sales increased 2.1%. Price realization was approximately 10\npoints, driven by strategic pricing actions across key markets. Volume\ndecreased approximately 8%, reflecting the impact of price elasticity and the\ndepletion of inventory shipped in the first quarter of 2026 to mitigate\ngeopolitical risk, partially offset by stronger-than-planned demand in Brazil\nand the UK.\n\nInternational segment loss was $5.1 million in the second quarter of 2026, a\ndecrease of $24.9 million versus the prior year period driven by increased raw\nmaterial and manufacturing costs and higher advertising investment, partially\noffset by net price realization and supply chain productivity and\ntransformation program savings. This resulted in a segment margin of (2.3)%, a\ndecrease of 1,160 basis points versus the prior year period.\n\nUnallocated Corporate Expense\n\nHershey's unallocated corporate expense in the second quarter of 2026 was\n$199.7 million, an increase of $20.1 million, or 11.2%, versus the same period\nof 2025. The year-over-year increase was primarily driven by continued\ninvestments in capabilities and technology which more than offset reduced\nincentive compensation.\n\nLive Webcast\n\nAt approximately 7:00 a.m. (Eastern time) today, Hershey will post a\npre-recorded management discussion of its second-quarter 2026 results and\nbusiness update to its website at www.thehersheycompany.com/investors\n(http://www.thehersheycompany.com/investors) . In addition, at 8:30 a.m.\n(Eastern time) today, the Company will host a live question and answer session\nwith investors and financial analysts. Details to access this call are\navailable on the Company's website.\n\nNote: In this release, for the second quarter of 2026, Hershey references\nincome measures that are not in accordance with GAAP because they exclude\ncertain items impacting comparability, including gains and losses associated\nwith mark-to-market commodity derivatives, business realignment activities and\nacquisition and integration-related activities. The Company refers to these\nincome measures as \"adjusted\" or \"non-GAAP\" financial measures throughout this\nrelease. These non-GAAP financial measures are used in evaluating results of\noperations for internal purposes and are not intended to replace the\npresentation of financial results in accordance with GAAP. Rather, the Company\nbelieves exclusion of such items provides additional information to investors\nto facilitate the comparison of past and present operations. A reconciliation\nof the non-GAAP financial measures referenced in this release to their nearest\ncomparable GAAP financial measures as presented in the Consolidated Statements\nof Income is provided below.\n\n \n Reconciliation of Certain Non-GAAP Financial Measures\n Consolidated results Three Months Ended Six Months Ended\n In thousands except per share data June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n Reported gross profit $ 1,263,308 $ 796,273 $ 2,486,039 $ 1,740,540\n Derivative mark-to-market (gains) losses (102,907) 200,727 (72,723) 412,181\n Non-GAAP gross profit $ 1,160,401 $ 997,000 $ 2,413,316 $ 2,152,721\n\n Reported operating profit $ 642,641 $ 192,811 $ 1,283,334 $ 562,032\n Derivative mark-to-market losses (102,907) 200,727 (72,723) 412,181\n Business realignment activities 8,362 15,139 21,718 40,992\n Acquisition and integration-related activities 15,419 1,880 17,680 3,465\n Non-GAAP operating profit $ 563,515 $ 410,557 $ 1,250,009 $ 1,018,670\n\n Reported provision for income taxes $ 130,615 $ 86,393 $ 288,205 $ 185,844\n Derivative mark-to-market (gains) losses* (13,230) 29,754 (15,047) 60,885\n Business realignment activities* 2,135 3,808 5,443 9,986\n Acquisition and integration-related activities* 3,746 448 4,295 826\n Non-GAAP provision for income taxes $ 123,266 $ 120,403 $ 282,896 $ 257,541\n\n Reported net income $ 457,665 $ 62,719 $ 892,770 $ 286,922\n Derivative mark-to-market (gains) losses (89,677) 170,974 (57,677) 351,297\n Business realignment activities 6,227 11,330 16,276 31,005\n Acquisition and integration-related activities 11,673 1,432 13,385 2,639\n Non-GAAP net income $ 385,888 $ 246,455 $ 864,754 $ 671,863\n\n Reported EPS - Diluted $ 2.26 $ 0.31 $ 4.39 $ 1.41\n Derivative mark-to-market (gains) losses (0.52) 0.98 (0.37) 2.04\n Business realignment activities 0.04 0.07 0.11 0.20\n Acquisition and integration-related activities 0.08 0.01 0.09 0.02\n Tax effect of all adjustments reflected above** 0.04 (0.16) 0.03 (0.36)\n Non-GAAP EPS - Diluted $ 1.90 $ 1.21 $ 4.25 $ 3.31\n\n * The tax effect for each adjustment is determined by calculating the tax\n impact of the adjustment on the Company's quarterly effective tax rate, unless\n the nature of the item and/or the tax jurisdiction in which the item has been\n recorded requires application of a specific tax rate or tax treatment, in\n which case the tax effect of such item is estimated by applying such specific\n tax rate or tax treatment.\n ** Adjustments reported above are reported on a pre-tax basis before the tax\n effect described in the reconciliation above for non-GAAP provision for income\n taxes.\n\n \n\nIn the assessment of our results, we review and discuss the following\nfinancial metrics that are derived from the reported and non-GAAP financial\nmeasures presented above:\n Three Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n As reported gross margin 45.3 % 30.5 % 42.2 % 32.1 %\n Non-GAAP gross margin (1) 41.6 % 38.1 % 41.0 % 39.7 %\n\n As reported operating profit margin 23.1 % 7.4 % 21.8 % 10.4 %\n Non-GAAP operating profit margin (2) 20.2 % 15.7 % 21.2 % 18.8 %\n\n As reported effective tax rate 22.2 % 57.9 % 24.4 % 39.3 %\n Non-GAAP effective tax rate (3) 24.2 % 32.8 % 24.7 % 27.7 %\n\n (1) Calculated as non-GAAP gross profit as a percentage of net sales for each\n period presented.\n (2) Calculated as non-GAAP operating profit as a percentage of net sales for each\n period presented.\n (3) Calculated as non-GAAP provision for income taxes as a percentage of non-GAAP\n income before taxes (calculated as non-GAAP operating profit minus non-GAAP\n interest expense, net plus or minus non-GAAP other (income) expense, net).\n\n \n\nAppendix I\n\nDetails of the charges included in GAAP results, as summarized in the press\nrelease (above), are as follows:\n\nDerivative mark-to-market (gains) losses: The mark-to-market (gains) losses\non commodity derivatives are recorded as unallocated and excluded from\nadjusted results until such time as the related inventory is sold, at which\ntime the corresponding (gains) losses are reclassified from unallocated to\nsegment income. Since we often purchase commodity contracts to price inventory\nrequirements in future years, we make this adjustment to facilitate the\nyear-over-year comparison of cost of sales on a basis that matches the\nderivative gains and losses with the underlying economic exposure being hedged\nfor the period.\n\nBusiness realignment activities: We periodically undertake restructuring and\ncost reduction activities as part of ongoing efforts to enhance long-term\nprofitability. During the first quarter of 2024, we commenced the Advancing\nAgility & Automation Initiative to improve supply chain and\nmanufacturing-related spend, optimize selling, general and administrative\nexpenses, leverage new technology and business models to further simplify and\nautomate processes, and generate long-term savings. During the three- and\nsix-months ended 2026 and 2025, business realignment charges related primarily\nto severance and employee benefit costs, as well as other third-party costs\nrelated to this program.\n\nAcquisition and integration-related activities: During the three- and\nsix-months ended 2026, we incurred costs related to the integration of the\nacquisition of LesserEvil, LLC into our North America Salty Snacks segment,\nas well as costs related to the integration of the Sour Strips brand from\nActual Candy, LLC into our North America Confectionery segment, including\ncontingent consideration remeasurement adjustments. During the three- and\nsix-months ended 2025, we incurred costs related to the acquisition of the\nSour Strips brand from Actual Candy, LLC into our North America Confectionery\nsegment.\n\nTax effect of all adjustments: This line item reflects the aggregate tax\neffect of all pre-tax adjustments reflected in the preceding line items of the\napplicable table. The tax effect for each adjustment is determined by\ncalculating the tax impact of the adjustment on the Company's effective tax\nrate for the period presented, unless the nature of the item and/or the tax\njurisdiction in which the item has been recorded requires application of a\nspecific tax rate or tax treatment, in which case the tax effect of such item\nis estimated by applying such specific tax rate or tax treatment.\n\nSafe Harbor Statement\n\nThis release contains forward-looking statements within the meaning of the\nPrivate Securities Litigation Reform Act of 1995, including but not limited to\nour 2026 Full-year Financial Outlook and other statements regarding our\nbusiness outlook and financial performance. Many of these forward-looking\nstatements can be identified by the use of words such as \"anticipate,\"\n\"assume,\" \"believe,\" \"continue,\" \"estimate,\" \"expect,\" \"forecast,\" \"future,\"\n\"intend,\" \"plan,\" \"potential,\" \"predict,\" \"project,\" \"strategy,\" \"target\" and\nsimilar terms, and future or conditional tense verbs like \"could,\" \"may,\"\n\"might,\" \"should,\" \"will\" and \"would,\" among others. These statements are made\nbased upon current expectations that are subject to risk and uncertainty.\nBecause actual results may differ materially from those contained in the\nforward-looking statements, you should not place undue reliance on the\nforward-looking statements when deciding whether to buy, sell or hold the\nCompany's securities. Factors that could cause results to differ materially\ninclude, but are not limited to: disruptions or inefficiencies in our supply\nchain due to the loss or disruption of essential manufacturing or supply\nelements or other factors; issues, concerns or regulatory changes related to\nthe quality and safety of our products, ingredients or packaging, human and\nworkplace rights, and other environmental, social or governance matters;\nchanges in raw material and other costs, along with the availability of\nadequate supplies of raw materials and the Company's ability to successfully\nhedge against volatility in raw material pricing; the Company's ability to\nsuccessfully execute business continuity plans to address changes in consumer\npreferences and the broader economic and operating environment; selling price\nincreases, including volume declines associated with pricing elasticity;\nmarket demand for our new and existing products; increased marketplace\ncompetition; failure to successfully execute and integrate acquisitions,\ndivestitures and joint ventures; changes in governmental laws, regulations and\npolicies, including taxes and tariffs; political, economic, and/or financial\nmarket conditions, including with respect to inflation, rising interest rates,\nslower growth or recession, evolving priorities of the U.S. administration,\nand other events beyond our control such as the impacts on the business\narising from international conflicts and geopolitical tensions; risks and\nuncertainties related to our international operations; disruptions, failures\nor security breaches of our information technology infrastructure and that of\nour customers and partners (including our suppliers); our ability to hire,\nengage and retain a talented global workforce, our ability to realize expected\ncost savings and operating efficiencies associated with strategic initiatives\nor restructuring programs; complications with the design, implementation or\nusage of our new enterprise resource planning system, including the ability to\nsupport post-implementation efforts and maintain enhancements, new features or\nmodifications; and such other matters as discussed in our Annual Report on\nForm 10-K for the year ended December 31, 2025 and in our other filings with\nthe U.S. Securities and Exchange Commission from time to time. The Company\nundertakes no duty to update any forward-looking statement to conform the\nstatement to actual results or changes in the Company's expectations.\n\n \n The Hershey Company\n Consolidated Statements of Income\n for the periods ended June 28, 2026 and June 29, 2025\n (unaudited) (in thousands except percentages and per share amounts)\n\n Three Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n\n Net sales $ 2,787,306 $ 2,614,718 $ 5,891,473 $ 5,420,137\n Cost of sales 1,523,998 1,818,445 3,405,434 3,679,597\n Gross profit 1,263,308 796,273 2,486,039 1,740,540\n\n Selling, marketing and administrative expense 620,552 603,207 1,196,592 1,161,879\n Business realignment costs 115 255 6,113 16,629\n\n Operating profit 642,641 192,811 1,283,334 562,032\n Interest expense, net 49,963 46,035 99,781 90,657\n Other (income) expense, net 4,398 (2,336) 2,578 (1,391)\n\n Income before income taxes 588,280 149,112 1,180,975 472,766\n Provision for income taxes 130,615 86,393 288,205 185,844\n\n Net income $ 457,665 $ 62,719 $ 892,770 $ 286,922\n\n Net income per share - Basic - Common $ 2.32 $ 0.32 $ 4.52 $ 1.45\n - Diluted - Common $ 2.26 $ 0.31 $ 4.39 $ 1.41\n - Basic - Class B $ 2.11 $ 0.29 $ 4.10 $ 1.31\n\n Shares outstanding - Basic - Common 147,573 148,247 148,001 148,175\n - Diluted - Common 202,745 203,188 203,249 203,168\n - Basic - Class B 54,614 54,614 54,614 54,614\n\n Key margins:\n Gross margin 45.3 % 30.5 % 42.2 % 32.1 %\n Operating profit margin 23.1 % 7.4 % 21.8 % 10.4 %\n Net margin 16.4 % 2.4 % 15.2 % 5.3 %\n\n \n The Hershey Company\n Supplementary Information – Segment Results\n for the periods ended June 28, 2026 and June 29, 2025\n (unaudited) (in thousands except percentages)\n\n Three Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 % Change June 28, 2026 June 29, 2025 % Change\n Net sales:\n North America Confectionery $ 2,173,570 $ 2,085,468 4.2 % $ 4,663,488 $ 4,385,608 6.3 %\n North America Salty Snacks 387,845 315,519 22.9 % 737,915 593,317 24.4 %\n International 225,891 213,731 5.7 % 490,070 441,212 11.1 %\n Total $ 2,787,306 $ 2,614,718 6.6 % $ 5,891,473 $ 5,420,137 8.7 %\n\n Segment income (loss):\n North America Confectionery $ 705,785 $ 503,929 40.1 % $ 1,498,163 $ 1,200,303 24.8 %\n North America Salty Snacks 62,578 66,480 (5.9) % 96,880 108,333 (10.6) %\n International (5,145) 19,795 (126.0) % 10,114 48,521 (79.2) %\n Total segment income 763,218 590,204 29.3 % 1,605,157 1,357,157 18.3 %\n Unallocated corporate expense (1) 199,703 179,647 11.2 % 355,148 338,487 4.9 %\n Unallocated mark-to-market (gains) losses on commodity derivatives (2) (102,907) 200,727 (151.3) % (72,723) 412,181 (117.6) %\n Costs associated with business realignment initiatives 8,362 15,139 (44.8) % 21,718 40,992 (47.0) %\n Acquisition and integration-related activities 15,419 1,880 NM 17,680 3,465 NM\n Operating profit 642,641 192,811 233.3 % 1,283,334 562,032 128.3 %\n Interest expense, net 49,963 46,035 8.5 % 99,781 90,657 10.1 %\n Other (income) expense, net 4,398 (2,336) NM 2,578 (1,391) NM\n Income before income taxes $ 588,280 $ 149,112 294.5 % $ 1,180,975 $ 472,766 149.8 %\n\n (1) Includes centrally-managed (a) corporate functional costs relating to\n legal, treasury, finance and human resources, (b) expenses associated with the\n oversight and administration of our global operations, including warehousing,\n distribution and manufacturing, information systems and global shared\n services, (c) non-cash stock-based compensation expense and (d) other gains or\n losses that are not integral to segment performance.\n (2) Net (gains) losses on mark-to-market valuation of commodity derivative\n positions recognized in unallocated derivative losses (gains).\n NM - not meaningful\n\n \n Three Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n Segment income as a percent of net sales:\n North America Confectionery 32.5 % 24.2 % 32.1 % 27.4 %\n North America Salty Snacks 16.1 % 21.1 % 13.1 % 18.3 %\n International (2.3) % 9.3 % 2.1 % 11.0 %\n\n \n The Hershey Company\n Consolidated Balance Sheets\n as of June 28, 2026 and December 31, 2025\n (in thousands of dollars)\n\n Assets June 28, 2026 December 31, 2025\n (unaudited)\n Cash and cash equivalents $ 791,213 $ 925,859\n Accounts receivable - trade, net 907,368 729,547\n Inventories 1,743,318 1,429,254\n Prepaid expenses and other 514,342 504,239\n\n Total current assets 3,956,241 3,588,899\n\n Property, plant and equipment, net 3,475,714 3,529,608\n Goodwill 2,985,609 2,996,005\n Other intangibles 2,425,103 2,475,698\n Other non-current assets 1,102,688 1,123,285\n Deferred income taxes 27,697 27,802\n\n Total assets $ 13,973,052 $ 13,741,297\n\n Liabilities and Stockholders' Equity\n\n Accounts payable $ 1,400,822 $ 1,255,701\n Accrued liabilities 966,336 970,597\n Accrued income taxes 59,601 63,725\n Short-term debt 421,545 218,546\n Current portion of long-term debt 504,167 503,327\n\n Total current liabilities 3,352,471 3,011,896\n\n Long-term debt 4,684,968 4,681,194\n Other long-term liabilities 652,135 731,917\n Deferred income taxes 720,788 679,540\n\n Total liabilities 9,410,362 9,104,547\n\n Total stockholders' equity 4,562,690 4,636,750\n\n Total liabilities and stockholders' equity $ 13,973,052 $ 13,741,297\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/hershey-reports-second-quarter-2026-financial-results-302838129.html\n(https://www.prnewswire.com/news-releases/hershey-reports-second-quarter-2026-financial-results-302838129.html)\n\nSOURCE The Hershey Company\n\n\n\nFINANCIAL CONTACT: Anoori Naughton, anaughton@hersheys.com or MEDIA CONTACT: Allison Kleinfelter, akleinfelter@hersheys.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS926138/Hershey-Kiss-Logo.jpg?id=OA2799956\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn3dd4Qda","title":"Hershey Reports Second-Quarter 2026 Financial Results","author":"PR Newswire","ticker":"HSY","created":"2026-07-30T10:45:00.935Z","tickers":["HSY"],"exchange":"NYSE","article_body":"Hershey Reports Second-Quarter 2026 Financial Results\n\nPR Newswire\n\nHERSHEY, Pa., July 30, 2026\n\nHERSHEY, Pa., July 30, 2026 /PRNewswire/ -- The Hershey Company (NYSE: HSY)\ntoday announced net sales and earnings for the second quarter ended June 28,\n2026 and updated its 2026 sales and earnings outlook.\n\n\"We delivered a strong first half, with reported net sales up 8.7%, organic\nnet sales up 5.8% and meaningful earnings recovery. We enter the second half\nwith momentum, compelling growth plans, and increased investment behind our\nbrands, merchandising, and innovation. With cost visibility and operating\nflexibility, we are well positioned to navigate dynamic markets and deliver on\nour full-year financial commitments,\" said Kirk Tanner, The Hershey Company\nPresident and Chief Executive Officer.\n\nSecond-Quarter 2026 Financial Results Summary(1)\n\n * Consolidated net sales of $2,787.3 million, an increase of 6.6%.\n * Organic, constant currency net sales increased 3.6%.\n * Reported net income of $457.7 million, or $2.26 per share-diluted, an increase\nof 629.0%.\n * Adjusted earnings per share-diluted of $1.90, an increase of 57.0%.\nSix Months Ended 2026 Financial Results Summary(2)\n\n * Consolidated net sales of $5,891.5 million, an increase of 8.7%.\n * Organic, constant currency net sales increased 5.8%.\n * Reported net income of $892.8 million, or $4.39 per share-diluted, an increase\nof 211.3%.\n * Adjusted earnings per share-diluted of $4.25, an increase of 28.4%. (1) All comparisons for the second quarter of 2026 are with respect to the\n second quarter ended June 29, 2025\n (2) All comparisons for the six months ended 2026 are with respect to the six\n months ended June 29, 2025\n\n \n\n2026 Full-Year Financial Outlook\n\nThe Company is narrowing its net sales growth, organic net sales growth,\nreported earnings per share and adjusted earnings per share outlook for the\nyear. This outlook does not include potential future tariff rebates.\n 2026 Full-Year Outlook Prior Guidance Current Guidance\n Net sales growth* 4% to 5% 4.5% to 5%\n Organic net sales growth 2.5% to 3.5% 3% to 3.5%\n Reported earnings per share growth 79% to 89% 82% to 89%\n Adjusted earnings per share growth 30% to 35% 32.5% to 35%\n\n *Reflects an approximately 150 basis point benefit from the 2025 acquisition\n of LesserEvil\n\n \n\nThe Company also expects:\n\n * A reported and adjusted effective tax rate in the range of approximately 25%\nto 27%;\n * Other expense, which primarily reflects periodic benefit costs relating to\npension and other post-retirement benefit plans, of approximately $10 million;\n * Interest expense of approximately $200 million to $210 million;\n * Capital expenditures in the range of approximately $425 million to $475\nmillion; and\n * Advancing Agility & Automation Initiative savings of approximately $100\nmillion.\nBelow is a reconciliation of current projected 2026 and full-year 2025\nearnings per share-diluted calculated in accordance with U.S. generally\naccepted accounting principles (GAAP) to non-GAAP adjusted earnings per\nshare-diluted:\n 2026 (Projected) 2025\n Reported EPS – Diluted $7.89 - $8.17 $4.34\n Derivative Mark-to-Market Losses — $2.08\n Business Realignment Activities 0.30 - 0.35 $0.29\n Acquisition and Integration-Related Activities 0.18 - 0.25 $0.20\n Long-Lived Asset Impairment Charges — $0.03\n Tax Effect of All Adjustments Reflected Above $(0.13) $(0.63)\n Adjusted EPS – Diluted $8.36 - $8.52 $6.31\n\n \n\nAdjusted 2026 projected earnings per share-diluted, as presented above, does\nnot include the impact of mark-to-market gains and losses on our commodity\nderivative contracts that are reflected within corporate unallocated expense\nin segment results until the related inventory is sold since we are not able\nto forecast the impact of the market changes.\n\nSecond-Quarter 2026 Components of Net Sales Growth\n\nA reconciliation between reported net sales growth rates and organic, constant\ncurrency net sales growth rates, along with the contribution from net price\nrealization and volume, is provided below:\n Three Months Ended June 28, 2026\n Percentage Impact of Percentage Impact of Percentage Organic Organic\n Change as Foreign Change on Acquisition Change on Price Volume/Mix\n Reported Currency Constant Organic\n(Rounded)*\n(Rounded)*\n Exchange Currency Constant\n Basis Currency\n Basis\n North America Confectionery 4.2 % — % 4.2 % — % 4.2 % 14 % (10) %\n\n North America Salty Snacks 22.9 % — % 22.9 % 22.3 % 0.6 % (3) % 4 %\n\n International 5.7 % 3.6 % 2.1 % — % 2.1 % 10 % (8) %\n\n Total Company 6.6 % 0.3 % 6.3 % 2.7 % 3.6 % 12 % (8) %\n\n *Percentage changes may not compute directly as shown due to rounding of\n amounts presented above.\n\n \n Six Months Ended June 28, 2026\n Percentage Impact of Percentage Impact of Percentage Organic Organic\n Change as Foreign Change on Acquisition Change on Price Volume/Mix\n Reported Currency\nConstant Organic\n(Rounded)*\n(Rounded)*\n Exchange\nCurrency Constant\n Basis Currency\n Basis\n North America Confectionery 6.3 % 0.1 % 6.2 % — % 6.2 % 13 % (7) %\n\n North America Salty Snacks 24.4 % — % 24.4 % 21.4 % 3.0 % (1) % 4 %\n\n International 11.1 % 5.3 % 5.8 % — % 5.8 % 11 % (5) %\n\n Total Company 8.7 % 0.6 % 8.1 % 2.3 % 5.8 % 11 % (5) %\n\n *Percentage changes may not compute directly as shown due to rounding of\n amounts presented above.\n\n \n\nThe Company presents certain percentage changes in net sales on a constant\ncurrency basis, which excludes the impact of foreign currency exchange. To\npresent this information for historical periods, current period net sales for\nentities reporting in currencies other than the U.S. dollar are translated\ninto U.S. dollars at the average monthly exchange rates in effect during the\ncorresponding period of the prior fiscal year, rather than at the actual\naverage monthly exchange rates in effect during the current period of the\ncurrent fiscal year. As a result, the foreign currency impact is equal to the\ncurrent year results in local currencies multiplied by the change in the\naverage foreign currency exchange rate between the current fiscal period and\nthe corresponding period of the prior fiscal year.\n\nSecond-Quarter 2026 Consolidated Results\n\nConsolidated net sales increased 6.6% to $2,787.3 million in the second\nquarter of 2026. Organic, constant currency net sales increased 3.6%, driven\nby net price realization of approximately 12 points. Volume declined\napproximately 8 points primarily reflecting elasticity impacts in North\nAmerica Confectionery and International, partially offset by growth in North\nAmerica Salty Snacks. The impact of the LesserEvil acquisition was a 2.7 point\nbenefit, while the foreign exchange benefit was 0.3 points in the second\nquarter.\n\nReported gross margin was 45.3% in the second quarter of 2026, compared to\n30.5% in the second quarter of 2025, an increase of 1,480 basis points. The\nreported gross margin increase was driven by net price realization, derivative\nmark-to-market gains, lower net commodity costs, and productivity program\nsavings, which more than offset higher logistic expenses and unfavorable mix.\nAdjusted gross margin was 41.6% in the second quarter of 2026, an increase of\n350 basis points compared to the second quarter of 2025, driven by net price\nrealization, lower net commodity costs, and productivity program savings,\nwhich more than offset higher logistic expenses and unfavorable mix.\n\nSelling, marketing and administrative expenses increased 2.9% in the second\nquarter of 2026 versus the second quarter of 2025. Selling, marketing and\nadministrative expenses, excluding advertising and related consumer marketing,\nincreased 6.0% versus the second quarter of 2025, driven by higher capability\nand technology investments, partially offset by lower incentive compensation.\nAdvertising and related consumer marketing expenses decreased 3.3% in the\nsecond quarter of 2026 versus the same period last year, primarily due to\nefficiencies and timing of non-working media investment in North America\nConfectionery.\n\nSecond quarter 2026 reported operating profit was $642.6 million, an increase\nof 233.3% versus the second quarter of 2025, resulting in a reported operating\nprofit margin of 23.1%, an increase of 1,570 basis points versus the prior\nyear period. Adjusted operating profit of $563.5 million increased 37.3%\nversus the second quarter of 2025. Adjusted operating profit margin of 20.2%\nincreased 450 basis points versus the second quarter of 2025. The reported\noperating profit margin increase reflects favorable derivative mark-to-market\ngains. Reported and adjusted operating profit margin increases reflect net\nprice realization, lower net commodity costs, and productivity program savings\nwhich more than offset higher logistic expenses and capability and technology\ninvestments.\n\nThe reported effective tax rate in the second quarter of 2026 was 22.2%, a\ndecrease of 3,570 basis points versus the second quarter of 2025. The reported\neffective tax rate decrease was driven by the impact of commodity hedges on\nforeign rate differentials and a one-time increase in tax reserves in the\nprior year period. The adjusted effective tax rate was 24.2%, a decrease of\n860 basis points versus the second quarter of 2025. The adjusted effective tax\nrate for the second quarter of 2026 reflects a one-time increase in tax\nreserves in the prior year period.\n\nThe Company's second-quarter 2026 results, as prepared in accordance with\nGAAP, included items negatively impacting comparability of $79.1 million, or\n$0.36 per share-diluted. For the second quarter of 2025, items positively\nimpacting comparability totaled $217.7 million, or $0.90 per share-diluted.\n\nThe following table presents a summary of items impacting comparability in\neach of the second quarter and six-months ended 2026 and 2025 periods (see\nAppendix I for additional information):\n Pre-Tax (millions) Earnings Per Share-Diluted\n Three Months Ended Three Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n\n Derivative Mark-to-Market (Gains) Losses $ (102.9) $ 200.7 $ (0.52) $ 0.98\n Business Realignment Activities 8.4 15.1 0.04 0.07\n Acquisition and Integration-Related Activities 15.4 1.9 0.08 0.01\n Tax Effect of All Adjustments Reflected Above — — 0.04 (0.16)\n $ (79.1) $ 217.7 $ (0.36) $ 0.90\n\n Totals may not compute directly as shown due to rounding of amounts presented\n above.\n\n \n Pre-Tax (millions) Earnings Per Share-Diluted\n Six Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n\n Derivative Mark-to-Market (Gains) Losses $ (72.7) $ 412.2 $ (0.37) $ 2.04\n Business Realignment Activities 21.7 41.0 0.11 0.20\n Acquisition and Integration-Related Activities 17.7 3.5 0.09 0.02\n Tax Effect of All Adjustments Reflected Above — — 0.03 (0.36)\n $ (33.3) $ 456.6 $ (0.14) $ 1.90\n\n Totals may not compute directly as shown due to rounding of amounts presented\n above.\n\n \n\nThe following are comments about segment performance for the second quarter of\n2026 versus the prior year period. See the schedule of supplementary\ninformation within this press release for additional information on segment\nnet sales and profit.\n\nNorth America Confectionery\n\nHershey's North America Confectionery segment net sales were $2,173.6 million\nin the second quarter of 2026, an increase of 4.2% versus the same period last\nyear. Organic, constant currency net sales increased 4.2%, driven by\napproximately 14 points of net price realization. Volume declined\napproximately 10 points reflecting price elasticity and normal\nquarter-to-quarter shipment variability, partially offset by retailer\ninventory replenishment.\n\nHershey's U.S. candy, mint and gum (CMG) retail takeaway for the 12-week\nperiod ended July 19, 2026(3) in the multi-outlet plus convenience store\nchannels (MULO+ w/ Convenience) increased 3.7%. For this period, Hershey's CMG\nshare declined compared to the prior year due to increased competitive\ninnovation.\n\nThe North America Confectionery segment reported segment income of $705.8\nmillion in the second quarter of 2026, an increase of 40.1% versus the prior\nyear period, resulting in a segment margin of 32.5% in the quarter, an\nincrease of 830 basis points. The segment income and segment margin increases\nwere driven by net price realization, lower net commodity costs, and supply\nchain productivity and transformation program savings, partially offset by\nhigher logistic expenses.\n (3) The 12-week period ending July 19, 2026 excludes the impact of the Easter\n shift.\n\n \n\nNorth America Salty Snacks\n\nHershey's North America Salty Snacks segment net sales were $387.8 million in\nthe second quarter of 2026, an increase of 22.9% versus the same period last\nyear. The acquisition of LesserEvil contributed approximately 22 percentage\npoints to segment growth in the second quarter of 2026. Organic, constant\ncurrency net sales increased 0.6%. Volume increased approximately 4 points,\nbelow expectations, as strong innovation and velocity gains were partly offset\nby execution challenges on multipacks and Dot's pretzels. Net price\nrealization was an approximate 3 point headwind due to higher trade investment\nbehind new item launches.\n\nHershey's U.S. salty snacks retail takeaway for the 12-week period ended June\n28, 2026 in MULO+ w/ Convenience, excluding LesserEvil, increased 6.5% versus\nthe prior year period. This led to further gains in salty snack market share.\nOrganic, constant currency net sales trailed retail takeaway due to supply\nlimitations and the planned reduction of sales to private label customers.\n\nNorth America Salty Snacks segment income was $62.6 million in the second\nquarter of 2026, a decrease of 5.9% versus the second quarter of 2025, driven\nby higher logistic costs, lower net price realization, increased consumer\nmarketing investments, and unfavorable mix, which more than offset benefits\nfrom supply chain productivity and higher volume. This resulted in a segment\nmargin of 16.1%, a decrease of 500 basis points versus the prior year period.\n\nInternational\n\nSecond quarter 2026 net sales for Hershey's International segment increased\n5.7% versus the same period last year to $225.9 million. Organic, constant\ncurrency net sales increased 2.1%. Price realization was approximately 10\npoints, driven by strategic pricing actions across key markets. Volume\ndecreased approximately 8%, reflecting the impact of price elasticity and the\ndepletion of inventory shipped in the first quarter of 2026 to mitigate\ngeopolitical risk, partially offset by stronger-than-planned demand in Brazil\nand the UK.\n\nInternational segment loss was $5.1 million in the second quarter of 2026, a\ndecrease of $24.9 million versus the prior year period driven by increased raw\nmaterial and manufacturing costs and higher advertising investment, partially\noffset by net price realization and supply chain productivity and\ntransformation program savings. This resulted in a segment margin of (2.3)%, a\ndecrease of 1,160 basis points versus the prior year period.\n\nUnallocated Corporate Expense\n\nHershey's unallocated corporate expense in the second quarter of 2026 was\n$199.7 million, an increase of $20.1 million, or 11.2%, versus the same period\nof 2025. The year-over-year increase was primarily driven by continued\ninvestments in capabilities and technology which more than offset reduced\nincentive compensation.\n\nLive Webcast\n\nAt approximately 7:00 a.m. (Eastern time) today, Hershey will post a\npre-recorded management discussion of its second-quarter 2026 results and\nbusiness update to its website at www.thehersheycompany.com/investors\n(http://www.thehersheycompany.com/investors) . In addition, at 8:30 a.m.\n(Eastern time) today, the Company will host a live question and answer session\nwith investors and financial analysts. Details to access this call are\navailable on the Company's website.\n\nNote: In this release, for the second quarter of 2026, Hershey references\nincome measures that are not in accordance with GAAP because they exclude\ncertain items impacting comparability, including gains and losses associated\nwith mark-to-market commodity derivatives, business realignment activities and\nacquisition and integration-related activities. The Company refers to these\nincome measures as \"adjusted\" or \"non-GAAP\" financial measures throughout this\nrelease. These non-GAAP financial measures are used in evaluating results of\noperations for internal purposes and are not intended to replace the\npresentation of financial results in accordance with GAAP. Rather, the Company\nbelieves exclusion of such items provides additional information to investors\nto facilitate the comparison of past and present operations. A reconciliation\nof the non-GAAP financial measures referenced in this release to their nearest\ncomparable GAAP financial measures as presented in the Consolidated Statements\nof Income is provided below.\n\n \n Reconciliation of Certain Non-GAAP Financial Measures\n Consolidated results Three Months Ended Six Months Ended\n In thousands except per share data June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n Reported gross profit $ 1,263,308 $ 796,273 $ 2,486,039 $ 1,740,540\n Derivative mark-to-market (gains) losses (102,907) 200,727 (72,723) 412,181\n Non-GAAP gross profit $ 1,160,401 $ 997,000 $ 2,413,316 $ 2,152,721\n\n Reported operating profit $ 642,641 $ 192,811 $ 1,283,334 $ 562,032\n Derivative mark-to-market losses (102,907) 200,727 (72,723) 412,181\n Business realignment activities 8,362 15,139 21,718 40,992\n Acquisition and integration-related activities 15,419 1,880 17,680 3,465\n Non-GAAP operating profit $ 563,515 $ 410,557 $ 1,250,009 $ 1,018,670\n\n Reported provision for income taxes $ 130,615 $ 86,393 $ 288,205 $ 185,844\n Derivative mark-to-market (gains) losses* (13,230) 29,754 (15,047) 60,885\n Business realignment activities* 2,135 3,808 5,443 9,986\n Acquisition and integration-related activities* 3,746 448 4,295 826\n Non-GAAP provision for income taxes $ 123,266 $ 120,403 $ 282,896 $ 257,541\n\n Reported net income $ 457,665 $ 62,719 $ 892,770 $ 286,922\n Derivative mark-to-market (gains) losses (89,677) 170,974 (57,677) 351,297\n Business realignment activities 6,227 11,330 16,276 31,005\n Acquisition and integration-related activities 11,673 1,432 13,385 2,639\n Non-GAAP net income $ 385,888 $ 246,455 $ 864,754 $ 671,863\n\n Reported EPS - Diluted $ 2.26 $ 0.31 $ 4.39 $ 1.41\n Derivative mark-to-market (gains) losses (0.52) 0.98 (0.37) 2.04\n Business realignment activities 0.04 0.07 0.11 0.20\n Acquisition and integration-related activities 0.08 0.01 0.09 0.02\n Tax effect of all adjustments reflected above** 0.04 (0.16) 0.03 (0.36)\n Non-GAAP EPS - Diluted $ 1.90 $ 1.21 $ 4.25 $ 3.31\n\n * The tax effect for each adjustment is determined by calculating the tax\n impact of the adjustment on the Company's quarterly effective tax rate, unless\n the nature of the item and/or the tax jurisdiction in which the item has been\n recorded requires application of a specific tax rate or tax treatment, in\n which case the tax effect of such item is estimated by applying such specific\n tax rate or tax treatment.\n ** Adjustments reported above are reported on a pre-tax basis before the tax\n effect described in the reconciliation above for non-GAAP provision for income\n taxes.\n\n \n\nIn the assessment of our results, we review and discuss the following\nfinancial metrics that are derived from the reported and non-GAAP financial\nmeasures presented above:\n Three Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n As reported gross margin 45.3 % 30.5 % 42.2 % 32.1 %\n Non-GAAP gross margin (1) 41.6 % 38.1 % 41.0 % 39.7 %\n\n As reported operating profit margin 23.1 % 7.4 % 21.8 % 10.4 %\n Non-GAAP operating profit margin (2) 20.2 % 15.7 % 21.2 % 18.8 %\n\n As reported effective tax rate 22.2 % 57.9 % 24.4 % 39.3 %\n Non-GAAP effective tax rate (3) 24.2 % 32.8 % 24.7 % 27.7 %\n\n (1) Calculated as non-GAAP gross profit as a percentage of net sales for each\n period presented.\n (2) Calculated as non-GAAP operating profit as a percentage of net sales for each\n period presented.\n (3) Calculated as non-GAAP provision for income taxes as a percentage of non-GAAP\n income before taxes (calculated as non-GAAP operating profit minus non-GAAP\n interest expense, net plus or minus non-GAAP other (income) expense, net).\n\n \n\nAppendix I\n\nDetails of the charges included in GAAP results, as summarized in the press\nrelease (above), are as follows:\n\nDerivative mark-to-market (gains) losses: The mark-to-market (gains) losses\non commodity derivatives are recorded as unallocated and excluded from\nadjusted results until such time as the related inventory is sold, at which\ntime the corresponding (gains) losses are reclassified from unallocated to\nsegment income. Since we often purchase commodity contracts to price inventory\nrequirements in future years, we make this adjustment to facilitate the\nyear-over-year comparison of cost of sales on a basis that matches the\nderivative gains and losses with the underlying economic exposure being hedged\nfor the period.\n\nBusiness realignment activities: We periodically undertake restructuring and\ncost reduction activities as part of ongoing efforts to enhance long-term\nprofitability. During the first quarter of 2024, we commenced the Advancing\nAgility & Automation Initiative to improve supply chain and\nmanufacturing-related spend, optimize selling, general and administrative\nexpenses, leverage new technology and business models to further simplify and\nautomate processes, and generate long-term savings. During the three- and\nsix-months ended 2026 and 2025, business realignment charges related primarily\nto severance and employee benefit costs, as well as other third-party costs\nrelated to this program.\n\nAcquisition and integration-related activities: During the three- and\nsix-months ended 2026, we incurred costs related to the integration of the\nacquisition of LesserEvil, LLC into our North America Salty Snacks segment,\nas well as costs related to the integration of the Sour Strips brand from\nActual Candy, LLC into our North America Confectionery segment, including\ncontingent consideration remeasurement adjustments. During the three- and\nsix-months ended 2025, we incurred costs related to the acquisition of the\nSour Strips brand from Actual Candy, LLC into our North America Confectionery\nsegment.\n\nTax effect of all adjustments: This line item reflects the aggregate tax\neffect of all pre-tax adjustments reflected in the preceding line items of the\napplicable table. The tax effect for each adjustment is determined by\ncalculating the tax impact of the adjustment on the Company's effective tax\nrate for the period presented, unless the nature of the item and/or the tax\njurisdiction in which the item has been recorded requires application of a\nspecific tax rate or tax treatment, in which case the tax effect of such item\nis estimated by applying such specific tax rate or tax treatment.\n\nSafe Harbor Statement\n\nThis release contains forward-looking statements within the meaning of the\nPrivate Securities Litigation Reform Act of 1995, including but not limited to\nour 2026 Full-year Financial Outlook and other statements regarding our\nbusiness outlook and financial performance. Many of these forward-looking\nstatements can be identified by the use of words such as \"anticipate,\"\n\"assume,\" \"believe,\" \"continue,\" \"estimate,\" \"expect,\" \"forecast,\" \"future,\"\n\"intend,\" \"plan,\" \"potential,\" \"predict,\" \"project,\" \"strategy,\" \"target\" and\nsimilar terms, and future or conditional tense verbs like \"could,\" \"may,\"\n\"might,\" \"should,\" \"will\" and \"would,\" among others. These statements are made\nbased upon current expectations that are subject to risk and uncertainty.\nBecause actual results may differ materially from those contained in the\nforward-looking statements, you should not place undue reliance on the\nforward-looking statements when deciding whether to buy, sell or hold the\nCompany's securities. Factors that could cause results to differ materially\ninclude, but are not limited to: disruptions or inefficiencies in our supply\nchain due to the loss or disruption of essential manufacturing or supply\nelements or other factors; issues, concerns or regulatory changes related to\nthe quality and safety of our products, ingredients or packaging, human and\nworkplace rights, and other environmental, social or governance matters;\nchanges in raw material and other costs, along with the availability of\nadequate supplies of raw materials and the Company's ability to successfully\nhedge against volatility in raw material pricing; the Company's ability to\nsuccessfully execute business continuity plans to address changes in consumer\npreferences and the broader economic and operating environment; selling price\nincreases, including volume declines associated with pricing elasticity;\nmarket demand for our new and existing products; increased marketplace\ncompetition; failure to successfully execute and integrate acquisitions,\ndivestitures and joint ventures; changes in governmental laws, regulations and\npolicies, including taxes and tariffs; political, economic, and/or financial\nmarket conditions, including with respect to inflation, rising interest rates,\nslower growth or recession, evolving priorities of the U.S. administration,\nand other events beyond our control such as the impacts on the business\narising from international conflicts and geopolitical tensions; risks and\nuncertainties related to our international operations; disruptions, failures\nor security breaches of our information technology infrastructure and that of\nour customers and partners (including our suppliers); our ability to hire,\nengage and retain a talented global workforce, our ability to realize expected\ncost savings and operating efficiencies associated with strategic initiatives\nor restructuring programs; complications with the design, implementation or\nusage of our new enterprise resource planning system, including the ability to\nsupport post-implementation efforts and maintain enhancements, new features or\nmodifications; and such other matters as discussed in our Annual Report on\nForm 10-K for the year ended December 31, 2025 and in our other filings with\nthe U.S. Securities and Exchange Commission from time to time. The Company\nundertakes no duty to update any forward-looking statement to conform the\nstatement to actual results or changes in the Company's expectations.\n\n \n The Hershey Company\n Consolidated Statements of Income\n for the periods ended June 28, 2026 and June 29, 2025\n (unaudited) (in thousands except percentages and per share amounts)\n\n Three Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n\n Net sales $ 2,787,306 $ 2,614,718 $ 5,891,473 $ 5,420,137\n Cost of sales 1,523,998 1,818,445 3,405,434 3,679,597\n Gross profit 1,263,308 796,273 2,486,039 1,740,540\n\n Selling, marketing and administrative expense 620,552 603,207 1,196,592 1,161,879\n Business realignment costs 115 255 6,113 16,629\n\n Operating profit 642,641 192,811 1,283,334 562,032\n Interest expense, net 49,963 46,035 99,781 90,657\n Other (income) expense, net 4,398 (2,336) 2,578 (1,391)\n\n Income before income taxes 588,280 149,112 1,180,975 472,766\n Provision for income taxes 130,615 86,393 288,205 185,844\n\n Net income $ 457,665 $ 62,719 $ 892,770 $ 286,922\n\n Net income per share - Basic - Common $ 2.32 $ 0.32 $ 4.52 $ 1.45\n - Diluted - Common $ 2.26 $ 0.31 $ 4.39 $ 1.41\n - Basic - Class B $ 2.11 $ 0.29 $ 4.10 $ 1.31\n\n Shares outstanding - Basic - Common 147,573 148,247 148,001 148,175\n - Diluted - Common 202,745 203,188 203,249 203,168\n - Basic - Class B 54,614 54,614 54,614 54,614\n\n Key margins:\n Gross margin 45.3 % 30.5 % 42.2 % 32.1 %\n Operating profit margin 23.1 % 7.4 % 21.8 % 10.4 %\n Net margin 16.4 % 2.4 % 15.2 % 5.3 %\n\n \n The Hershey Company\n Supplementary Information – Segment Results\n for the periods ended June 28, 2026 and June 29, 2025\n (unaudited) (in thousands except percentages)\n\n Three Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 % Change June 28, 2026 June 29, 2025 % Change\n Net sales:\n North America Confectionery $ 2,173,570 $ 2,085,468 4.2 % $ 4,663,488 $ 4,385,608 6.3 %\n North America Salty Snacks 387,845 315,519 22.9 % 737,915 593,317 24.4 %\n International 225,891 213,731 5.7 % 490,070 441,212 11.1 %\n Total $ 2,787,306 $ 2,614,718 6.6 % $ 5,891,473 $ 5,420,137 8.7 %\n\n Segment income (loss):\n North America Confectionery $ 705,785 $ 503,929 40.1 % $ 1,498,163 $ 1,200,303 24.8 %\n North America Salty Snacks 62,578 66,480 (5.9) % 96,880 108,333 (10.6) %\n International (5,145) 19,795 (126.0) % 10,114 48,521 (79.2) %\n Total segment income 763,218 590,204 29.3 % 1,605,157 1,357,157 18.3 %\n Unallocated corporate expense (1) 199,703 179,647 11.2 % 355,148 338,487 4.9 %\n Unallocated mark-to-market (gains) losses on commodity derivatives (2) (102,907) 200,727 (151.3) % (72,723) 412,181 (117.6) %\n Costs associated with business realignment initiatives 8,362 15,139 (44.8) % 21,718 40,992 (47.0) %\n Acquisition and integration-related activities 15,419 1,880 NM 17,680 3,465 NM\n Operating profit 642,641 192,811 233.3 % 1,283,334 562,032 128.3 %\n Interest expense, net 49,963 46,035 8.5 % 99,781 90,657 10.1 %\n Other (income) expense, net 4,398 (2,336) NM 2,578 (1,391) NM\n Income before income taxes $ 588,280 $ 149,112 294.5 % $ 1,180,975 $ 472,766 149.8 %\n\n (1) Includes centrally-managed (a) corporate functional costs relating to\n legal, treasury, finance and human resources, (b) expenses associated with the\n oversight and administration of our global operations, including warehousing,\n distribution and manufacturing, information systems and global shared\n services, (c) non-cash stock-based compensation expense and (d) other gains or\n losses that are not integral to segment performance.\n (2) Net (gains) losses on mark-to-market valuation of commodity derivative\n positions recognized in unallocated derivative losses (gains).\n NM - not meaningful\n\n \n Three Months Ended Six Months Ended\n June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025\n Segment income as a percent of net sales:\n North America Confectionery 32.5 % 24.2 % 32.1 % 27.4 %\n North America Salty Snacks 16.1 % 21.1 % 13.1 % 18.3 %\n International (2.3) % 9.3 % 2.1 % 11.0 %\n\n \n The Hershey Company\n Consolidated Balance Sheets\n as of June 28, 2026 and December 31, 2025\n (in thousands of dollars)\n\n Assets June 28, 2026 December 31, 2025\n (unaudited)\n Cash and cash equivalents $ 791,213 $ 925,859\n Accounts receivable - trade, net 907,368 729,547\n Inventories 1,743,318 1,429,254\n Prepaid expenses and other 514,342 504,239\n\n Total current assets 3,956,241 3,588,899\n\n Property, plant and equipment, net 3,475,714 3,529,608\n Goodwill 2,985,609 2,996,005\n Other intangibles 2,425,103 2,475,698\n Other non-current assets 1,102,688 1,123,285\n Deferred income taxes 27,697 27,802\n\n Total assets $ 13,973,052 $ 13,741,297\n\n Liabilities and Stockholders' Equity\n\n Accounts payable $ 1,400,822 $ 1,255,701\n Accrued liabilities 966,336 970,597\n Accrued income taxes 59,601 63,725\n Short-term debt 421,545 218,546\n Current portion of long-term debt 504,167 503,327\n\n Total current liabilities 3,352,471 3,011,896\n\n Long-term debt 4,684,968 4,681,194\n Other long-term liabilities 652,135 731,917\n Deferred income taxes 720,788 679,540\n\n Total liabilities 9,410,362 9,104,547\n\n Total stockholders' equity 4,562,690 4,636,750\n\n Total liabilities and stockholders' equity $ 13,973,052 $ 13,741,297\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/hershey-reports-second-quarter-2026-financial-results-302838129.html\n(https://www.prnewswire.com/news-releases/hershey-reports-second-quarter-2026-financial-results-302838129.html)\n\nSOURCE The Hershey Company\n\n\n\nFINANCIAL CONTACT: Anoori Naughton, anaughton@hersheys.com or MEDIA CONTACT: Allison Kleinfelter, akleinfelter@hersheys.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS926138/Hershey-Kiss-Logo.jpg?id=OA2799956\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-07-30T10:45:00.99266349Z","server_sent_at_ms":1785408300992},"received_at":"2026-07-30T10:45:01.068Z","source_url":"https://www.prnewswire.com/news-releases/hershey-reports-second-quarter-2026-financial-results-302838129.html"},"analysis":{"id":"92323","press_release_id":"103306","analysis_json":{"industry":{"label":"Food Products","sector":"Consumer Staples"},"redFlags":["Volume declined 8% points due to pricing elasticity","International segment posted a loss of $5.1 million","Salty Snacks segment income decreased 5.9% on higher logistics costs"],"eventType":"earnings","narrative":"Hershey reported Q2 revenue of $2.79 billion, up 6.6% year-over-year, with adjusted EPS soaring 57% to $1.90 driven by significant margin expansion.\n\nReported operating margin jumped 1,570 basis points to 23.1%, fueled by pricing and productivity gains, though volume declined roughly 8% due to elasticity.\n\nThe company tightened its full-year outlook, raising net sales guidance to 4.5%-5% and adjusted EPS growth to 32.5%-35%.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Hershey margins surge 1,500+ bps as pricing power offsets volume declines; guidance raised."},"keyFigures":{"eps":1.9,"guidance":"Net sales growth 4.5% to 5%; Organic net sales growth 3% to 3.5%; Adjusted earnings per share growth 32.5% to 35%","revenueYoy":"6.6%","customDimensions":{"gross_margin":"45.3%","reported_eps":2.26,"operating_income":642600000,"operating_margin":"23.1%","adjusted_operating_margin":"20.2%"}},"quotedText":"We delivered a strong first half, with reported net sales up 8.7%, organic net sales up 5.8% and meaningful earnings recovery.","namedEntities":{"people":[{"name":"Kirk Tanner","role":"President and Chief Executive Officer"}],"products":[],"companies":[{"name":"The Hershey Company","ticker":"HSY"},{"name":"LesserEvil","relationship":"acquired"},{"name":"Actual Candy, LLC","relationship":"acquired"}],"dollarAmounts":[{"amount":"$2,787.3 million","context":"Q2 consolidated net sales"},{"amount":"$457.7 million","context":"Q2 reported net income"},{"amount":"$100 million","context":"Advancing Agility & Automation Initiative savings"}]},"materialImpact":{"score":4,"reasoning":"Adjusted EPS surged 57% year-over-year to $1.90, driven by massive reported margin expansion (gross margin up 1,480 bps) and cost savings. The company raised its full-year sales and earnings guidance."},"tickerRelevance":{"others":[],"primary":"HSY"},"globalImportance":45,"audienceRelevance":65,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"large-cap","eventGravity":"strong_earnings_and_guidance","sectorWeight":"consumer_staples","householdBrandBoost":true}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Hershey reported Q2 revenue of $2.79 billion, up 6.6% year-over-year, with adjusted EPS soaring 57% to $1.90 driven by significant margin expansion.\n\nReported operating margin jumped 1,570 basis points to 23.1%, fueled by pricing and productivity gains, though volume declined roughly 8% due to elasticity.\n\nThe company tightened its full-year outlook, raising net sales guidance to 4.5%-5% and adjusted EPS growth to 32.5%-35%.","key_figures":{"eps":1.9,"guidance":"Net sales growth 4.5% to 5%; Organic net sales growth 3% to 3.5%; Adjusted earnings per share growth 32.5% to 35%","revenueYoy":"6.6%","customDimensions":{"gross_margin":"45.3%","reported_eps":2.26,"operating_income":642600000,"operating_margin":"23.1%","adjusted_operating_margin":"20.2%"}},"named_entities":{"people":[{"name":"Kirk Tanner","role":"President and Chief Executive Officer"}],"products":[],"companies":[{"name":"The Hershey Company","ticker":"HSY"},{"name":"LesserEvil","relationship":"acquired"},{"name":"Actual Candy, LLC","relationship":"acquired"}],"dollarAmounts":[{"amount":"$2,787.3 million","context":"Q2 consolidated net sales"},{"amount":"$457.7 million","context":"Q2 reported net income"},{"amount":"$100 million","context":"Advancing Agility & Automation Initiative savings"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-07-30T12:19:06.774Z","global_importance":45,"audience_relevance":65,"importance_components":{"tickerTier":"large-cap","eventGravity":"strong_earnings_and_guidance","sectorWeight":"consumer_staples","householdBrandBoost":true}},"durationMs":297339,"modelName":"glm-4.7"}}