Hershey's first-quarter results showed stronger sales, earnings and margins as pricing helped offset cocoa and tariff-related costs. Consolidated net sales reached $3.1 billion, up 10.6% from $2.8 billion a year earlier, while adjusted earnings per share came in at $2.35, an increase of 12.4% and well above analyst estimates. Reported net income was $435 million, or $2.13 per share, from $1.10 a year earlier, and the reported operating profit rose 73.5% to $640.7 million with a profit margin of 20.6%, up 7.4 points. Management reaffirmed full-year guidance of 4% to 5% net sales growth and 30% to 35% adjusted EPS growth, projecting full-year adjusted EPS in the range of $8.20 to $8.52 compared with $6.31 in 2025. Lower cocoa prices, which have fallen from highs above $10,000 per metric ton to nearly $5,000, could support margin recovery, though commodity volatility and consumer demand remain key risks. The company also announced the unification of its sweet, salty, and protein brand portfolios under an integrated operating model called ONE Hershey, aiming to align strategy and innovation. Most analysts rate the stock a Hold with a 20% upside, as the balance of pricing and demand continues.
Hershey CoStrong Q1 earnings beat and reaffirmed guidance, with adjusted EPS up 12.4% and operating margin expanding 7.4 points.