Hershey beats Q2 sales estimates, raises 2026 sales growth guidance

Overview

• U.S. confectionery and snacks maker's Q2 sales rose 6.6%, beating analyst expectations

• Adjusted EPS for Q2 increased 57% to $1.90, beating analyst expectations

• Company raised full-year 2026 sales and adjusted EPS growth guidance

Outlook

• Hershey expects 2026 net sales growth outlook of 4.5%-5%

• Company expects 2026 organic net sales growth of 3%-3.5%

• Hershey sees 2026 adjusted EPS between $8.36 and $8.52

Result Drivers

• PRICE INCREASES - Net price realization drove sales growth across segments, especially in North America Confectionery, though volume declined due to price elasticity

• ACQUISITION IMPACT - The LesserEvil acquisition contributed 2.7 percentage points to total company sales growth and 22 points to Salty Snacks segment growth

• COST SAVINGS LOWER COMMODITY COSTS - Gross margin gains were driven by lower net commodity costs and productivity program savings, which more than offset higher logistics expenses and unfavorable mix

Company press release: ID:nPn3dd4Qda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "hold"

• Wall Street's median 12-month price target for Hershey Co is $208.00, about 13.1% above its July 29 closing price of $183.91

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• July 28 - Oreo maker Mondelez beats second-quarter estimates on steady demand

• July 28 - Family-owned companies have big appetites for US snack MA

• July 28 - Coca-Cola Q2 revenue beats on demand for sodas

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)