Hershey’s second quarter results for 2026 exceeded Wall Street’s revenue and non-GAAP profit expectations, but the market responded negatively, reflecting caution despite strong headline performance. Management attributed the growth to continued momentum in its core confectionery brands, improvements in nonmeasured channels such as food service, and effective retail inventory replenishment following new pack price transitions. CEO Kirk Tanner noted that "robust runway for growth with our core brands" helped offset supply chain challenges, particularly in the salty snacks segment, which saw operational disruptions that are now largely addressed through increased automation.
Is now the time to buy HSY? Find out in our full research report (it’s free for active Edge members).
Hershey (HSY) Q2 CY2026 Highlights:
- Revenue: $2.79 billion vs analyst estimates of $2.64 billion (6.6% year-on-year growth, 5.7% beat)
- Adjusted EPS: $1.90 vs analyst estimates of $1.43 (33.1% beat)
- Adjusted EPS guidance for the full year is $8.44 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 23.1%, up from 7.4% in the same quarter last year
- Organic Revenue rose 3.6% year on year (beat)
- Market Capitalization: $36.08 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hershey’s Q2 Earnings Call
- Andrew Lazar (Barclays) asked about the disconnect between strong Q2 results and cautious full-year guidance. CEO Kirk Tanner emphasized tougher second-half comparisons and the need for prudence amid macro uncertainty.
- Max Gumport (BNP Paribas) inquired if any merchandising shipments shifted from Q3 to Q2. Tanner clarified that some shipments were pulled forward but would be offset by an extra shipping day in Q4.
- Leah Jordan (Goldman Sachs) sought details on cocoa deflation and supply visibility. CFO Steve Voskuil explained that current hedging and global supply conditions offer flexibility to benefit from potential cost declines in 2027.
- Michael Lavery (Piper Sandler) questioned margin pressure in international markets. Tanner attributed this to delayed cocoa cost pass-through and ongoing logistics investments, but noted strong demand in Brazil, India, and the U.K.
- Thomas Palmer (JPMorgan) asked about the timing of market share gains tied to innovation. Tanner said share dynamics are primarily driven by new product launches, with a strong innovation pipeline planned for the second half and beyond.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) the rollout and performance of new innovations, particularly in salty snacks and seasonal confectionery, (2) progress in resolving supply chain constraints and logistics cost pressures, and (3) early evidence of volume recovery and market share stabilization—especially as cocoa cost relief is expected in 2027. Execution on international margin improvements and successful activation of merchandising programs will also serve as important signposts.
Hershey currently trades at $180.00, down from $183.91 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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