July 30 - Hershey delivered second-quarter revenue and profit that topped Wall Street expectations, driven by price increases and steady consumer interest in brands such as Reese's chocolates and Dot's Pretzels. The company said higher prices implemented over the past year helped counter elevated cocoa costs and supported results amid a cautious spending environment.
Sales and segment performance
For the quarter ended June 28, Hershey recorded net sales of $2.79 billion, a 6.6% increase compared with the prior year. That figure exceeded analysts' expectations, which had projected a 0.7% rise to $2.63 billion, according to data compiled by LSEG. On a segment basis, North America Confectionery - Hershey's largest business - posted a 4.2% year-on-year sales gain, while North America Salty Snacks climbed 22.9%.
Profit and guidance
The company reported adjusted earnings of $1.90 per share for the quarter, comfortably above the consensus estimate of $1.42 per share. Hershey also updated its outlook for 2026 adjusted earnings per share, projecting a range of $8.36 to $8.52. The midpoint of that range is below analysts' expectation of $8.48 per share.
Drivers and market context
Hershey said its pricing strategy, enacted over the past year, has been a primary tool to offset higher cocoa costs. Executives highlighted that core brands, including Reese's and Dot's Pretzels, sustained demand despite consumers remaining cautious. The company's results follow a stronger-than-expected quarter from rival Mondelez earlier in the week.
Investor focus and outlook
Investors are watching how resilient demand remains for Hershey's chocolate portfolio as higher input costs persist and the company maintains elevated prices. While the quarter's top-line and profit beats underscore near-term strength, the guidance midpoint trailing analyst expectations introduces an area of scrutiny for analysts and market participants.
This report presents company-provided financial metrics and market expectations compiled by LSEG, without additional commentary beyond the figures and developments disclosed by Hershey.