Hershey Q3 sales slightly beats; raises 2026 sales growth outlook to about 5%

Overview

• U.S. confectionery maker's Q3 sales grew 3%, a slight beat of analyst expectations

• Adjusted EPS for Q3 rose sharply and beat analyst expectations

• Company margin gains driven by price realization, productivity savings, and tariff refunds

Outlook

• Hershey raises 2026 net sales growth outlook to about 5% from 4.5%-5%

• Company now expects 2026 organic net sales growth of about 3%

• Hershey lifts 2026 adjusted EPS growth forecast to 36%-38.5% from 32.5%-35%

Result Drivers

• PRICE REALIZATION - Co said higher prices drove net sales growth, offsetting lower volumes

• PRODUCTIVITY SAVINGS & TARIFF REFUNDS - Co said margin gains were helped by productivity program savings, tariff refunds and lower net commodity costs

• ACQUISITION IMPACT - LesserEvil acquisition contributed to North America Salty Snacks segment sales growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "hold"

• Wall Street's median 12-month price target for The Hershey Company is $190.00, about 16% above its October 28 closing price of $163.77

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Oct 28 - Chipotle tops quarterly sales expectations as it continues to attract diners

• Oct 28 - Chilis owner Brinker posts higher Q1 revenue on menu price hike; raises guidance

• Oct 27 - Coca-Cola lifts profit forecast on international soda demand, flags higher costs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)