Hershey Raises 2026 Earnings Forecast as Third-Quarter Profit Rebounds

Hershey raised its full-year 2026 adjusted earnings forecast after reporting stronger third-quarter profit and sales, helped by pricing, cost reductions and changes in input costs. The company reported on October 29 that net sales for the quarter ended September 27 rose 3% from a year earlier to $3.2755 billion.

Reported net income increased to $580.8 million, or $2.88 per diluted share, from the comparable period a year earlier. Adjusted earnings reached $2.64 per diluted share, more than double the year-earlier figure. The distinction matters because adjusted earnings exclude certain items included in reported profit and are not directly interchangeable with the accounting result.

The company now expects adjusted full-year earnings of $8.58 to $8.74 per share, compared with its previous range of $8.36 to $8.52. Its forecast for total sales growth is approximately 5%, while its outlook for organic sales growth is around 3%. Both are management projections rather than completed results.

Underlying demand was more restrained than the headline sales increase might suggest. Hershey said organic sales measured at constant currency rose just 0.8% in the quarter. Independent financial analysis noted that higher selling prices helped offset weaker sales volumes, a pattern that can increase revenue without indicating an equivalent rise in the number of products sold.

Hershey's portfolio includes confectionery and salty snacks. The acquisition of LesserEvil has contributed to reported sales growth, meaning acquisition effects should be distinguished from growth generated by the existing business. The company also cited tariff refunds in its annual adjusted earnings guidance, which complicates comparisons with underlying profitability.

Management said consumer spending remains cautious despite progress in its business initiatives. The company expects further cost savings from its automation and operational programme, but the size and timing of future savings remain forecasts. Investors will be watching whether improved margins can persist alongside weaker volume trends and changes in cocoa and other ingredient costs.