The Quarter in Numbers
The Hershey Company (NYSE: HSY) reported second-quarter 2026 net sales of $2,787.3 million, a 6.6% increase year over year, as aggressive net price realization offset meaningful volume declines across its core confectionery and international businesses. Adjusted earnings per share-diluted came in at $1.90, up 57.0% from Q2 2025, while reported net income surged to $457.7 million — a 629.0% jump driven in large part by a favorable swing in commodity derivative mark-to-market positions versus the prior-year period. Adjusted gross margin expanded 350 basis points to 41.6%, and adjusted operating profit margin widened 450 basis points to 20.2%, reflecting lower net commodity costs and ongoing savings from the company's Advancing Agility & Automation Initiative.
For the first six months of 2026, consolidated net sales reached $5,891.5 million, up 8.7% on a reported basis and 5.8% organically on a constant-currency basis. Half-year adjusted EPS of $4.25 marked a 28.4% improvement, and six-month reported operating profit of $1,283.3 million more than doubled the prior-year figure of $562.0 million.
Segment Scorecard
North America Confectionery — Hershey's largest business at $2,173.6 million in Q2 net sales — posted a 4.2% reported gain and a 32.5% segment margin, up 830 basis points. Approximately 14 points of net price realization drove the top line, while volume fell roughly 10 points on price elasticity and normal shipment variability. U.S. candy, mint, and gum retail takeaway in multi-outlet plus convenience channels rose 3.7% for the 12-week period ended July 19, 2026, though CMG market share slipped against heightened competitive innovation.
North America Salty Snacks posted the segment's biggest headline number — 22.9% net sales growth to $387.8 million — but most of that lift came from the 2025 acquisition of LesserEvil, which contributed approximately 22 percentage points. Organic constant-currency growth was just 0.6%, as execution challenges on multipacks and Dot's pretzels partially offset strong innovation velocity. Segment margin compressed 500 basis points to 16.1%, pressured by higher logistics costs and elevated trade investment behind new-item launches. The LesserEvil deal carries roughly a 150-basis-point benefit to full-year reported net sales growth, according to the company's own guidance footnote — a reminder of how acquisition arithmetic can obscure underlying organic momentum in the snacks and specialty food segment.
The International segment grew reported net sales 5.7% to $225.9 million, but posted a segment loss of $5.1 million — a $24.9 million deterioration year over year — as raw material cost inflation and increased advertising spend overwhelmed 10 points of price realization. Volume fell approximately 8%, partly reflecting inventory depletion after first-quarter pre-shipments to hedge geopolitical risk.
Full-Year Guidance
Hershey tightened its 2026 net sales growth guidance to 4.5%–5.0% from the prior range of 4%–5%, and raised the floor on organic constant-currency growth to 3.0%–3.5%. Full-year adjusted EPS growth guidance was narrowed to 32.5%–35.0%, implying an adjusted EPS range of $8.36–$8.52 against the 2025 base of $6.31. The company noted the outlook does not include potential future tariff rebates. Capital expenditures are projected at $425 million to $475 million, and the Agility & Automation program is on track to deliver approximately $100 million in savings for the year — a meaningful contribution to margin defense as foodservice and retail buyers alike navigate a commodity-volatile supply environment. For operators sourcing Hershey ingredients or licensed confectionery products, the pricing trajectory embedded in the guidance signals that list-price pressure in confectionery and snack categories is unlikely to ease materially in the back half of 2026.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
