Stock Markets March 31, 2026

Hershey Shares Slip After Company Reaffirms 2026 Targets at NYSE Investor Day

Confectioner holds sales and earnings outlook while outlining an expanded snacking strategy and supply-chain modernization plans

By Sofia Navarro HSY
Hershey Shares Slip After Company Reaffirms 2026 Targets at NYSE Investor Day
HSY

Hershey shares fell 3% following an investor day at the New York Stock Exchange where management reaffirmed full-year 2026 guidance, detailed plans to broaden its snacking portfolio, and outlined efforts to modernize the supply chain with automation and AI-enabled decision making. The company reiterated its 2026 net sales and earnings growth targets and provided multi-year organic sales and adjusted EPS trajectories through 2028.

Key Points

  • Hershey reaffirmed its full-year 2026 guidance: reported net sales growth of 4% to 5% and organic net sales growth of 2.5% to 3.5%; reported EPS growth of 79% to 89% and adjusted EPS growth of 30% to 35%.
  • Management unveiled an expanded commercial strategy - the One Hershey Commercial Model - to align teams across sweet, salty, and functional snacking and broaden distribution.
  • The company plans to modernize its supply chain with automation, technology, and AI-enabled decision making to drive productivity gains. Impacted sectors include consumer staples (snacking), food manufacturing, and supply-chain technology.

Hershey Co. saw its stock decline about 3% on Tuesday after management used an investor day at the New York Stock Exchange to restate the company's 2026 financial guidance and lay out strategic priorities aimed at expanding its presence across snacking categories.

The company maintained its full-year 2026 outlook, forecasting reported net sales growth of 4% to 5% and organic net sales growth of 2.5% to 3.5%. Hershey also reaffirmed its earnings projections for the year, expecting reported earnings per share to rise 79% to 89% and adjusted earnings per share to increase 30% to 35%.

Executives framed the investor day around a push to broaden the business beyond traditional confectionery. Management said it will pursue expansion into premium and better-for-you offerings and accelerate growth in salty and functional snacking categories as part of a strategy to capture a wider segment of consumer snacking demand.

"Hershey is built to Lead Next Generation Snacking, and today we’re sharing exactly how we get there," said Kirk Tanner, President and Chief Executive Officer. "With a differentiated portfolio, we are uniquely positioned to win with our iconic core brands and expand faster in high growth spaces."

As part of the strategic update, Hershey introduced the One Hershey Commercial Model, an operating approach intended to integrate commercial teams across sweet, salty, and functional snacking categories to drive portfolio growth and broaden distribution. The company also highlighted plans to modernize its supply chain with investments in automation, technology, and AI-enabled decision making, with the goal of generating productivity improvements.

Looking beyond 2026, Hershey provided multi-year guidance. For 2026-2027 the company projects organic net sales growth of 2% to 4% and expects adjusted earnings per share to be up in the double digits. Beginning in 2028, management foresees organic net sales growth of 2% to 4% annually and adjusted earnings per share growth in the range of 6% to 8%.

The investor day combined a restatement of near-term financial targets with a strategic outline focused on portfolio expansion and operational modernization. Market reaction to the reaffirmed guidance and strategic roadmap was negative in the short term, reflected in the roughly 3% decline in Hershey's share price on Tuesday.


Clear summary

Hershey reaffirmed its 2026 guidance at an NYSE investor day, holding sales and earnings targets while presenting a growth strategy that emphasizes expansion into premium, better-for-you, salty, and functional snacking categories and supply-chain modernization via automation and AI. The market responded with a roughly 3% drop in the stock.

Risks

  • Market reaction - shares fell approximately 3% following the reaffirmed guidance and strategic presentation, indicating near-term investor skepticism that could affect equity-market performance (affects financial markets and investor sentiment).
  • Execution risk - the company's strategy to expand into premium, better-for-you, salty, and functional snacking depends on successful product development, distribution expansion, and integration under the One Hershey Commercial Model (affects consumer staples and retail distribution).
  • Operational modernization uncertainty - planned productivity gains from automation, technology, and AI-enabled decision making are contingent on effective implementation and integration, posing risks to expected supply-chain improvements (affects supply-chain and operations within food manufacturing).

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