Hershey Q1 2026 earnings – summary
- Hershey posted $3.1bn revenue, up 10.6% quarter on quarter
- Organic sales rose 7.9% year on year, driven mainly by pricing
- Profit surged 93.6% as inflation and cost pressures eased
- Hershey’s and Reese’s led growth with double digit non-seasonal sales
- International business lagged while management reaffirmed 2026 guidance and investment focus
It’s been a bumpy year for The Hershey Company, and it’s still only April.
In February, the maker of Reese’s Pieces and Hershey’s Kisses, suffered a 60% profit drop, despite sales picking up.
Then the multinational came under fire from the Reese’s family over ingredients changes in Reese’s Peanut Butter Cups.
Next came the exit of the US president after little more than a year in the job.
And, just last week, a key shareholder announced the sale of 30,000 shares.
But things finally seem to be turning in the confectionery giant’s favour, with the latest round of financial results (Q1 2026) showing figures firmly on the rise.
Revenue up
First up, the company is celebrating revenues of $3.1bn (€2.6bn) – up 10.6% on the last quarter.
Meanwhile organic sales are up 7.9% year-on-year, demonstrating solid underlying growth, and pricing power and demand resilience across the portfolio.
On top of this reported net income, in other words the company’s profits, jumped a whopping 93.6% year-on-year to $435.1m, or $2.13 per diluted share. And adjusted earnings per share (EPS) rose 12.4% to $2.35.
This sharp increase shows just how heavily inflation and cost pressures weighed on the company’s profitability in 2025. Because, as cost pressures eased, margins improved.
“We kicked off the year strong and are on track to hit our financial targets for 2026,” said CEO Kirk Tanner in a statement on the results.
He went on to credit Hershey’s and Reese’s as key drivers of growth, “delivering first quarter non-seasonal retail sales lifts of 11% and 10%, respectively”.
International sales struggle
Despite undeniably positive Q1 numbers, there is one area Hershey is clearly struggling - international sales.
Hershey’s international business remains relatively small, and continues to perform poorly when compared with the domestic market.
Recent performance shows flat to declining growth, with overall volumes declining approximately 2%.
The company has previously acknowledged the challenges it faces in the international market, positioning it as a longer‑term growth opportunity rather than a near‑term driver.
Hershey’s strategy
Hershey, says Tanner, is “laser-focused on fuelling core growth and making bold moves in brand investment, innovation, R&D, technology, and talent” to drive the business forward.
That strategy is underpinned by the business’s confidence in its full‑year outlook, which was reaffirmed for 2026, reflecting expectations of continued sales growth and sharply higher earnings.
Alongside this, the company is balancing investment with cost discipline, targeting further productivity gains through its Agility & Automation programme while maintaining elevated capital spending to support capacity, innovation and digital capabilities.
The sweet maker also flagged ongoing risks from input costs and consumer sensitivity, particularly if inflation re-emerges.
Hershey’s turnaround
These results mark a notable shift in fortunes for the Pennsylvania‑headquartered confectionery giant, after a turbulent start to the year.
Whether the rebound reflects a deeper strategic reset or more favourable economic conditions remains to be seen, and will become clearer as the year progresses.
For now, Hershey’s performance suggests renewed momentum, and sends a message to the wider confectionery industry that strong brands, disciplined pricing and continued investment can still deliver growth, even amid ongoing uncertainty.
