Hershey (NYSE:HSY) Announces Earnings Results, Beats Expectations By $0.31 EPS

Hershey (NYSE:HSY) posted its quarterly earnings data on Thursday. The company reported $1.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.40 by $0.31, FiscalAI reports. Hershey had a return on equity of 32.08% and a net margin of 11.84%.The firm had revenue of $3.09 billion during the quarter, compared to analysts’ expectations of $2.97 billion. During the same period in the prior year, the business earned $2.69 EPS. The company’s revenue for the quarter was up 7.0% compared to the same quarter last year. Hershey updated its FY 2026 guidance to 8.200-8.520 EPS.

Here are the key takeaways from Hershey’s conference call:

• Management guided to a recovery year with 4%–5% net sales growth and significant earnings improvement (CFO cited roughly 30%–35% EPS growth), signaling confidence in top-line momentum and margin recovery.
• Despite recent cocoa price declines, Hershey is largely hedged above current spot levels and the hedging position is “not in great shape” for 2026, so much of the potential cocoa-driven margin upside is likely to roll into 2027 rather than materialize this year.
• The salty-snacks business is a clear growth engine — Q4 salty grew ~18% with double-digit volume gains, driving share and retail space expansion.
• Hershey plans double-digit increases in advertising and multi-year R&D/innovation investments to fuel long-term growth, which should support demand but will temper near-term margin improvement.
• Management is monitoring macro risks (tariff inventory effects, SNAP waivers — 2 of 12 states implemented so far — and GLP-1 adoption); tariffs aided Q4 margins but some tariffed inventory will pressure Q1, and the company calls SNAP a manageable headwind included in the outlook.

Hershey Price Performance

Shares of HSY traded up $17.78 during mid-day trading on Thursday, reaching $223.57. 3,796,892 shares of the company’s stock were exchanged, compared to its average volume of 1,976,818. The company has a quick ratio of 0.83, a current ratio of 1.36 and a debt-to-equity ratio of 1.02. The company has a 50-day simple moving average of $188.12 and a two-hundred day simple moving average of $185.26. The company has a market cap of $45.34 billion, a price-to-earnings ratio of 33.43 and a beta of 0.18. Hershey has a 52-week low of $150.04 and a 52-week high of $225.55.

Insiders Place Their Bets

In other news, CFO Steven E. Voskuil sold 1,500 shares of the firm’s stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $198.67, for a total value of $298,005.00. Following the transaction, the chief financial officer directly owned 52,319 shares in the company, valued at $10,394,215.73. This trade represents a 2.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Kirk Tanner purchased 2,000 shares of the business’s stock in a transaction that occurred on Friday, November 21st. The stock was acquired at an average price of $185.46 per share, for a total transaction of $370,920.00. Following the purchase, the chief executive officer owned 47,860 shares of the company’s stock, valued at approximately $8,876,115.60. This represents a 4.36% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold a total of 6,000 shares of company stock valued at $1,119,450 over the last quarter. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On Hershey

Several large investors have recently modified their holdings of the stock. State Street Corp increased its holdings in shares of Hershey by 1.8% in the 3rd quarter. State Street Corp now owns 7,253,041 shares of the company’s stock valued at $1,356,681,000 after purchasing an additional 128,982 shares during the period. Tidal Investments LLC boosted its holdings in Hershey by 811.2% during the third quarter. Tidal Investments LLC now owns 140,897 shares of the company’s stock valued at $26,355,000 after acquiring an additional 125,434 shares during the period. Adage Capital Partners GP L.L.C. acquired a new stake in Hershey in the 2nd quarter valued at approximately $17,090,000. Alyeska Investment Group L.P. bought a new position in Hershey during the third quarter worth $16,261,000. Finally, Danske Bank A S bought a new stake in shares of Hershey in the third quarter valued at about $14,341,000. 57.96% of the stock is owned by institutional investors.

Hershey News Roundup

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Q4 results beat Street estimates — EPS $1.71 vs. consensus ~$1.40 and revenue $3.09B vs. ~$2.97B; management also issued stronger FY‑2026 guidance, which lifted investor expectations for growth. Hershey Reports Fourth-Quarter and Full-Year 2025 Financial Results; Provides 2026 Outlook
• Positive Sentiment: Board approved a higher quarterly dividend (common stock $1.452), reflecting management confidence and boosting the stock’s income appeal. Hershey Declares Quarterly Dividends
• Positive Sentiment: Guidance revised above consensus (FY‑2026 EPS range 8.200–8.520 vs. street ~7.08), helping push analysts to raise targets and contributing to upside momentum. Hershey sees strong 2026 even as cocoa costs weigh (Reuters)
• Positive Sentiment: Several analyst upgrades and higher price targets following the print have supported the rally and set a new 1‑year high for the stock. Hershey Sets New 1-Year High on Analyst Upgrade
• Positive Sentiment: Technical buyers noted a breakout/past buy point after the bullish earnings and outlook, attracting momentum flows into the shares. Good Sign For Valentine’s Day? Hershey Jumps Past Buy Point On Earnings, Outlook
• Neutral Sentiment: Cocoa futures moved today as markets digested Hershey’s outlook — futures rose on short covering after the company eased demand concerns; this is an industry reaction that can trade independently of HSY’s fundamentals. Cocoa Prices Rise as Hershey Allays Cocoa Demand Concerns
• Negative Sentiment: Despite the beat, margins remain pressured by high cocoa costs and tariff expenses; fourth‑quarter profit was lower year‑over‑year and management flagged commodity/tariff headwinds that will weigh on near‑term profitability. Hershey Profit Dragged Down by Tariffs, Cocoa Costs (WSJ)

Analyst Ratings Changes

A number of equities research analysts recently commented on HSY shares. Morgan Stanley reiterated an “overweight” rating and issued a $214.00 target price on shares of Hershey in a research report on Wednesday, January 28th. Jefferies Financial Group raised their price objective on Hershey from $185.00 to $207.00 and gave the stock a “neutral” rating in a research report on Monday. DA Davidson lifted their price objective on Hershey from $185.00 to $207.00 and gave the company a “neutral” rating in a research note on Monday. Barclays set a $210.00 price objective on Hershey in a report on Friday, January 16th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Hershey in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and fifteen have given a Hold rating to the company. Based on data from MarketBeat.com, Hershey presently has a consensus rating of “Hold” and a consensus price target of $197.56.

About Hershey

The Hershey Company (NYSE: HSY) is a leading North American chocolatier and snack manufacturer headquartered in Hershey, Pennsylvania. The company develops, produces and markets a wide range of confectionery and snack products for retail, foodservice and international customers. Hershey’s business spans manufacturing, branded product marketing, packaging and distribution across grocery, convenience, mass merchant and e-commerce channels.

Hershey’s product portfolio centers on chocolate and sugar confectionery, including core brands such as Hershey’s, Reese’s, Hershey’s Kisses and Twizzlers, alongside non-chocolate snacks and confectionery brands.