Hershey Co Earnings
The Hershey Company (NYSE: HSY) recently reported its third-quarter earnings for the period ending September 28, 2025. The company surpassed expectations, driven by its commitment to innovation, strategic brand investments, and market-leading execution. According to Kirk Tanner, The Hershey Company President and CEO, the results have spurred the company to raise its full-year outlook for net sales and earnings per share.
Hershey Co Results
| Financial Metric | Q3 2025 | YoY Change |
|---|---|---|
| Net Sales | $3,181.4 million | 6.5% increase |
| Organic, Constant Currency Net Sales | Increase of 6.2% | 6.2% increase |
| Reported Net Income | $276.3 million | Decrease of 38.2% |
| Earnings Per Share - Diluted | $1.36 | Decrease of 38.2% |
| Adjusted Earnings Per Share - Diluted | $1.30 | Decrease of 44.4% |
The results show that Hershey experienced a 6.5% increase in net sales, reaching $3,181.4 million. Yet, despite the rise in sales, reported net income saw a significant decrease of 38.2% to $276.3 million, with diluted earnings per share also falling to $1.36. The adjusted earnings per share of $1.30 marked a decrease of 44.4% year-over-year, underscoring challenges from higher commodity and tariff costs.
Revenue Breakdown
| Segment | Q3 2025 Net Sales | Q3 2025 Segment Income | YoY Change in Net Sales | YoY Margin Change |
|---|---|---|---|---|
| North America Confectionery | $2,615.6 million | $571.5 million | 5.6% increase | Margin decreased by 750 basis points |
| North America Salty Snacks | $321.0 million | $57.7 million | 10.0% increase | Margin decreased by 50 basis points |
| International | $244.8 million | ($13.6 million) loss | 12.1% increase | Margin decreased by 1,210 basis points |
In-Depth Analysis
North America Confectionery
This segment recorded a 5.6% increase in net sales to $2,615.6 million, primarily driven by a strong net price realization of approximately 7 points. However, volume dipped due to price elasticity effects. Despite robust growth in core brands and innovation, the segment's income and margin fell due to higher commodity and tariff costs.
North America Salty Snacks
A standout performer, this segment achieved a 10% uplift in net sales to $321 million, aided by a strong volume increase of 11 points. Nevertheless, the segment's margin narrowed slightly by 50 basis points due to increased supply chain costs geared towards enhancing multipack capabilities.
International
The international segment of Hershey increased its net sales by 12.1% to $244.8 million. This growth was driven by strategic price adjustments and volume surges, especially through double-digit growth in the Brazilian market. Despite these gains, the segment posted a loss of $13.6 million, largely due to increased manufacturing and commodity expenses.
Key Developments
The quarter saw significant movement driven by strategic initiatives, such as the sour strips acquisition from Actual Candy, LLC, that added minor benefits to net sales growth. Hershey is committed to evolving its operational landscape through the Advancing Agility & Automation Initiative, anticipated to save approximately $150 million. This initiative reflects Hershey's commitment to leveraging technology and optimizing processes for long-term efficiency.
Comments from Company Officers
Kirk Tanner emphasized the forward momentum: "I am excited to steer the next generation of growth at the company, working closely with our talented team members, valued customers, and the Board. Together, we'll focus on delighting consumers and delivering results as we unlock our full potential as a snacking industry leader." This optimism underpins Hershey's strategic direction as it focuses on sustained innovation and market leadership.
Hershey Co Stock Forecast
Against the backdrop of its latest earnings, Hershey's stock price presents potential highs and lows grounded in both the impressive sales trajectory and the pressure on margins due to cost increments. Considering these factors, the stock could see a high target around $260, if strategic initiatives continue translating into tangible growth without further cost pressures, while the low could be roughly $180, if commodity and tariff costs persist alongside market pressures.
In conclusion, Hershey Co has showcased resilience and adaptability through strategic innovation in both its product lines and operational efficiencies. However, ongoing cost challenges and market dynamics necessitate careful monitoring as the company continues its pursuit of leadership in the global snacking industry.
