The Hershey Company raised its 2026 adjusted earnings growth outlook after third-quarter adjusted diluted earnings per share more than doubled, while higher prices helped offset weaker volume and subdued organic sales growth.
The company now expects adjusted earnings per share (EPS) growth of 36% to 38.5%, up from its previous range of 32.5% to 35%. It forecast full-year net sales growth of about 5%, compared with 4.5% to 5% previously, while its organic net sales growth outlook eased to about 3% from a prior range of 3% to 3.5%.
Third-quarter adjusted diluted EPS climbed 103.1% to $2.64, and net sales increased 3% to $3.2755 billion. Organic sales, measured on a constant-currency basis, rose 0.8%.
Net pricing contributed about 11 percentage points to organic sales, while volume reduced growth by about 10 points. The company attributed the volume decline to customers’ sensitivity to prices, shipment timing and planned portfolio changes in international markets. Growth in North American salty snacks partly offset those pressures.
Reported gross margin rose to 46.1% from 32.6%, while adjusted gross margin was 42.7%. Hershey cited pricing, productivity savings, tariff refunds, lower net commodity costs and derivative mark-to-market gains as contributors to the reported increase. Lower volume and higher freight and logistics expenses partly offset those factors.
The adjusted earnings outlook includes about $0.22 per share from tariff refunds received in the third quarter and $0.03 from second-quarter refunds. It does not include any potential future tariff refunds. The Hershey Company President and Chief Executive Officer Kirk Tanner said demand-support measures were starting to show results as shoppers became more cautious.
The Securities and Exchange Commission’s filing index lists Hershey’s Oct. 29 Form 8-K under Item 2.02 for results of operations and financial condition. The filing includes the earnings release as an exhibit under Item 9.01.
