Hershey’s strong second-quarter results and outlook – summary
- Hershey increased second-quarter net sales 6.6% to $2.78bn year-on-year growth
- Organic constant-currency sales rose 3.6%, signalling resilient consumer demand trends
- Net income surged 629%, aided by weaker prior-year comparisons
- LesserEvil acquisition and brand investment supported ongoing performance and momentum
- Hershey raised 2026 guidance following strong earnings recovery and growth
The Hershey Company had an impressive start to 2026.
The confectionery giant enjoyed a 93% profit jump in Q1 and has carried that momentum into Q2, with sales and earnings continuing to outperform expectations.
Consolidated net sales were up 6.6% year-on-year to $2.78bn, while organic, constant-currency net sales increased 3.6%, emphasising the continued demand for Hershey products and underscoring the strength of the company’s core business.
Sales growth was supported by the 2025 acquisition of snack brand LesserEvil, which expanded Hershey’s presence in the increasingly important snacking sector.
Meanwhile, net income jumped a whopping 629% year-on-year to $457.7m, reflecting a strong earnings recovery against a comparatively weak Q2 2025 base.
Profitability also improved, with adjusted diluted earnings per share (EPS) rising 57% year-on-year to $1.90.
The results come as Hershey continues to invest in its brands, merchandising and innovation, while improved operational flexibility has helped it navigate commodity cost volatility. And they rounded off a strong first half for the multinational.
Growth gathers pace
Consolidated net sales rose 8.7% to $5.89bn in the six months ended 28 June 2026, while organic, constant-currency net sales increased 5.8%. Adjusted diluted EPS followed suit, climbing 28.4% to $4.25.
“We delivered a strong first half, with reported net sales up 8.7%, organic net sales up 5.8% and meaningful earnings recovery,” said CEO Kirk Tanner. “We enter the second half with momentum, compelling growth plans, and increased investment behind our brands, merchandising, and innovation. With cost visibility and operating flexibility, we are well positioned to navigate dynamic markets and deliver on our full-year financial commitments.”
Outlook improves for 2026
Buoyed by the results, Hershey has tightened its full-year guidance, now expecting net sales growth of 4.5%-5%, organic net sales growth of 3%-3.5%, and adjusted EPS growth of 32.5%-35% in 2026.
This is up from 4%-5% net sales growth, 2.5%-3.5% organic net sales growth and adjusted EPS growth of 30%-35%, predicted earlier in the year.
The upgraded outlook comes despite continued volatility in commodity markets, particularly cocoa, with Tanner highlighting improved cost visibility and operating flexibility as key factors supporting the company’s confidence heading into the second half of the year.
The revised guidance also signals confidence that sales momentum and earnings recovery can be sustained through the remainder of 2026.
Industry implications
The latest results indicate that the maker of majors including Reese’s Pieces and Twizzlers has moved beyond the worst of the earnings pressure that weighed on performance in 2025.
Strong sales growth, improving profitability and a more confident full-year outlook imply investments in brands, innovation and operational efficiency are beginning to pay off.
The inclusion of LesserEvil has also broadened Hershey’s snacking portfolio, giving the company greater exposure to growth areas beyond traditional confectionery.
Perhaps most importantly, the results show Hershey’s ability to protect margins in the face of persistent cocoa market uncertainty. While commodity costs remain a challenge, improving earnings suggest the American multinational is getting better at balancing pricing, productivity initiatives and consumer demand.
For the wider confectionery sector, Hershey’s performance provides an encouraging signal that consumers remain willing to spend on well-established brands even when prices are higher.
The results also reinforce the growing importance of portfolio diversification, with acquisitions and product innovation proving to be key growth drivers.
With demand proving resilient and profitability recovering, Hershey’s strong first-half performance may offer a guide to how large confectionery manufacturers can maintain growth.
