Hershey Company (NYSE:HSY, XETRA:HSY) shares surged 7.7% on Thursday after the chocolate and snack maker reported stronger-than-expected quarterly results and offered a robust outlook for 2026.
The company posted adjusted earnings per share of $1.71 for the fourth quarter, beating analysts’ expectations of $1.40, though down 36.4% from $2.69 a year earlier.
Revenue rose 7% to $3.09 billion, exceeding the $2.98 billion forecast, supported by higher pricing, acquisitions, and new product launches.
Net income for the quarter came in at $320 million.
While pricing and acquisitions fueled sales growth, Hershey faced margin pressures from rising commodity and tariff costs.
Jefferies analysts noted the company delivered a “strong Q4,” surpassing consensus sales, EBIT, and EPS estimates by roughly 4%, 23%, and 23%, respectively, driven by better-than-expected volume in North America Confection and strong growth in North America Salty products.
Hershey also provided guidance for 2026, projecting net sales and EPS to come in approximately 2% and 18% above analyst consensus at the midpoints. The outlook reflects the company’s expectations of continued pricing power, a strong innovation calendar, cost-saving initiatives, and modest declines in cost of goods sold.
“Innovation and execution are working, with cost-saving initiatives supporting,” Jefferies said, highlighting the company’s positive trajectory.