Hershey reports 10.6% increase in net sales for Q1FY2026 financial results
The confectionery giant reported consolidated net sales of US$3.10 billion, marking a 10.6% increase compared to the same period in 2025.
USA – The Hershey Company has announced net sales and earnings for the first quarter ended March 29, 2026, and reaffirmed its 2026 sales and earnings outlook.
The iconic Pennsylvania-based confectionery giant delivered a strong start to the year, with results exceeding analyst forecasts across multiple metrics.
Hershey posted consolidated net sales of US$3,104.2 million in the first quarter, an increase of 10.6%, while organic constant currency net sales rose 7.9%.
Reported net income came in at US$435.1 million, or US$2.13 per diluted share, representing a remarkable 93.6% increase.
On an adjusted basis, the company reported earnings of US$2.35 per share, beating analyst estimates of US$2.07 by US$0.28.
Performance was robust across all three of Hershey’s business segments. The North America Confectionery segment reported net sales of US$2,489.9 million in the first quarter of 2026, an increase of 8.3% versus the same period last year, with segment income of US$792.4 million, an increase of 13.8%, and a segment margin of 31.8%.
The North America Salty Snacks segment posted net sales of US$350.1 million, a surge of 26.0% versus the prior year, though segment income declined 18.1%, driven by higher supply chain costs, in part related to a voluntary temporary product withdrawal, and increased consumer marketing investments.
International segment net sales grew 16.1% to US$264.2 million, with organic constant currency net sales rising 8.0%, driven by approximately 12 points of net price realization.
Key brands Hershey’s and Reese’s were identified as primary growth drivers, delivering first quarter non-seasonal retail sales lifts of 11% and 10%, respectively.
The results underscore the resilience of the company’s core confectionery portfolio even in a challenging consumer spending environment.
Looking ahead, Hershey expects at least 15% growth in adjusted EPS for the second quarter of 2026, with a full-year growth outlook of 30% to 35%.
The company also anticipates a meaningful recovery in adjusted gross margin beginning in the second quarter, with a full-year improvement of approximately 400 basis points. Operating margin for the quarter stood at 20.6%, up markedly from 13.2% in the same period of the prior year.
“We kicked off the year strong and are on track to hit our financial targets for 2026. Hershey’s and Reese’s are key drivers, delivering first quarter non-seasonal retail sales lifts of 11% and 10%, respectively. We are laser-focused on fueling core growth and making bold moves in brand investment, innovation, R&D, technology, and talent to drive our business to new heights,” said Kirk Tanner, The Hershey Company President and Chief Executive Officer.
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