Hershey Sweetens 2026 Outlook on Strong Demand

Hershey Company has raised its financial projections for 2026, now expecting to achieve the upper half of its previously stated sales and adjusted earnings targets. This optimistic outlook follows a robust performance in the first half of the year, driven by effective pricing strategies, operational efficiencies, and sustained consumer demand across its diverse product lines.

In the second quarter, Hershey's net sales saw a significant increase of 6.6% compared to the prior year. This growth was partially fueled by the LesserEvil acquisition and favorable foreign currency translations. Net price realization was substantial at approximately 12%, though this was partially offset by an approximate eight-point decrease in sales volume. The company attributed this volume decline primarily to elasticity effects observed in its North America Confectionery and International segments.

Looking ahead, Hershey now projects total-company organic net sales growth between 3% and 3.5% for the full year 2026. Adjusted earnings per share growth is anticipated to range from 32.5% to 35%. While adjusted gross margin expanded by 350 basis points in the second quarter, aided by input cost deflation, the company now forecasts full-year gross margin expansion to be slightly below 400 basis points due to elevated freight and logistics costs affecting its salty snacks business.