HSY earnings analysis
What we found in HSY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Hershey Company reported a strong Q1 2026, with net sales of $3,104.2 million, a 10.6% increase from the previous year, while EPS rose to $2.13, up 93.6%. The company experienced growth across its North America Confectionery and Salty Snacks segments, but encountered challenges from increased costs and reduced volumes in certain areas.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Net sales increased by 10.6% year-over-year, reaching $3,104.2 million from $2,805.4 million.
- Significant EPS Increase
- Diluted EPS rose to $2.13, up 93.6% compared to $1.10 in Q1 2025.
- Improved Gross Margin
- Gross margin expanded by 570 basis points to 39.4%, driven by favorable pricing actions.
- Salty Snacks Segment Surge
- North America Salty Snacks net sales grew by 26.0%, reaching $350.1 million, aided by the acquisition of LesserEvil.
- Operating Profit Boost
- Operating profit surged by 73.5% to $640.7 million, reflecting enhanced operational efficiency.
- International Segment Growth
- International net sales increased to $264.2 million, a 16.1% increase from $227.5 million last year.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Supply Chain Cost Pressures
- Higher commodity and tariff costs increased overall expenses, leading to pressure on profits.
- Volume Declines in Key Segments
- Volume decreased by approximately 4% in the North America Confectionery segment, affecting sales.
- Geopolitical and Tariff Risks
- Ongoing tariffs and geopolitical uncertainties, especially related to the Middle East, pose risks to cost structures.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.13
- Gross margin
- 39.4%
- Operating margin
- 20.6%
- Segment
- North America Confectionery: $2,489.9 million
- Segment
- North America Salty Snacks: $350.1 million
- Segment
- International: $264.2 million
What they said about what is next.
The company reaffirmed full-year guidance for net sales growth of 4% to 5% and adjusted EPS growth guidance of 30% to 35%.
The filing reads better than the one before it.
What came before.
- 10-K · February 17, 2026
- Hershey closed 2025 with broad top-line resilience, completed the LesserEvil acquisition on November 18, 2025, and generated strong cash flow, while margins showed mid-year compression with recovery into Q4. The company…
- 10-Q · July 30, 2025
- Hershey reported Q2 net sales of $2,614,718,000 (up $540,238,000 vs Q2 2024) but saw significant margin and earnings compression: gross profit fell to $796,273,000 (30.5% gross margin) and diluted EPS declined to $0.31…
- 10-Q · May 1, 2025
- Hershey reported Q1 net sales of $2,805,419 (in thousands) and net income of $224,203, a material decline versus Q1 2024. Gross profit and operating profit deteriorated sharply (gross profit $944,267; operating profit…
- 10-Q · November 7, 2024
- Hershey reported Q3 net sales of $2,987,494,000 (down $42,493,000 vs. prior year) and diluted common EPS of $2.20 (down $0.32 vs. $2.52 a year ago). Gross profit and operating profit contracted (gross profit…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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