Hershey reports Q4 2025 results, issues optimistic 2026 outlook

USA – The Hershey Company has announced its fourth-quarter and full-year 2025 financial results, which ended December 31, 2025, reporting robust sales growth despite profit pressures from higher costs and mark-to-market swings.

Consolidated Q4 net sales rose 7.0% to US$3.091 billion, with organic constant currency sales up 5.7%, fueled by 9% net price realization and an extra shipping day, though offset by volume declines in confectionery segments.

Full-year net sales increased 4.4% to US$11.693 billion, with organic growth of 4.2%.

Reported Q4 net income fell 59.9% to US$320 million (US$1.57 per share-diluted), while adjusted EPS dropped 36.4% to US$1.71, impacted by lapping prior derivative gains, higher commodity/tariff costs, and inventory timing.

Full-year reported net income declined 60.3% to US$883 million (US$4.34 per share), reflecting similar headwinds.

Segment Performance

North America Confectionery sales grew through variety packs and seasonal programming, while Salty Snacks surged 38.1%, driven by margin expansion to 21.1% from volume and productivity gains.​

Hershey’s North America Confectionery segment net sales were US$2,478.5 million in the Q4 of 2025, an increase of 5.3% versus the same period in 2024. 

Organic, constant currency net sales increased 5.0%, driven by approximately 10 points of net price realization.

North America Confectionery segment income was US$722.0 million in the fourth quarter of 2025, a decrease of 10.7% compared with the 2024 period.  This resulted in a segment margin of 29.1%, down 520 basis points. 

Hershey’s North America Salty Snacks segment net sales were US$357.0 million in the fourth quarter of 2025, an increase of 28.0% year over year.

The acquisition of LesserEvil contributed approximately 10 percentage points to segment growth in the fourth quarter.

Q4 2025 net sales for the Hershey’s International segment increased 0.4% year over year to US$255.6 million.

International segment loss was US$31.6 million in the fourth quarter of 2025, a decline of US$61.1 million versus the prior-year period, driven by higher commodity costs and lower volume, which more than offset net price realization, supply chain productivity, and transformation program cost savings.

Hershey’s unallocated corporate expense in the fourth quarter of 2025 was US$236.3 million, an increase of US$40.9 million, or 20.9%, compared with the same period in 2024. Higher compensation costs and investments in capabilities drove this increase.

2026 Full-Year Financial Outlook

For 2026, Hershey forecasts reported net sales growth of 4-5%, boosted by pricing, innovation, advertising, and ~150 basis points from acquisitions.

Reported EPS is projected at US$7.77-US$8.19 (up 79-89%), with adjusted EPS at US$8.20-US$8.52 (up 30-35%), offsetting brand/tech investments and interest via sales/margin recovery.

Sales growth and gross margin recovery are expected to more than offset increased strategic investment in brands, capabilities and technology, as well as higher interest expense.

The gap between the reported and adjusted earnings per share growth outlooks primarily reflects a large derivative mark-to-market loss recorded in reported earnings per share in 2025.

CEO Kirk Tanner noted, “As we enter 2026, we have strong conviction in the momentum of our business,” emphasizing international expansion in Mexico, Brazil, and the UK, plus portfolio optimization.

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