The Hershey Company (NYSE:HSY) posted stronger-than-expected quarterly results on Thursday, with solid net sales growth despite volume pressure tied to consumer price sensitivity.
The company flagged ongoing margin headwinds from elevated commodity and tariff costs and higher operating expenses, even as shares rose in premarket trading.
Hershey reported fourth-quarter adjusted earnings per share of $1.71, beating the analyst consensus estimate of $1.40.
Quarterly sales of $3.09 billion (+7% year over year) outpaced the Street view of $2.98 billion.
Organic, constant-currency net sales rose 5.7%. Acquisitions added 1.2 points to sales, while currency provided a 0.1-point benefit.
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Hershey said elasticity-driven volume declines in both the North America Confectionery and International segments partially offset quarterly gains.
Hershey’s North America Confectionery segment net sales were $2,478.5 million in the fourth quarter of 2025, an increase of 5.3% versus the same period last year.
North America Salty Snacks Net sales were $357.0 million in the fourth quarter of 2025, an increase of 28.0% versus the same period last year.
Hershey’s International segment increased 0.4% versus the same period last year to $255.6 million.
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Adjusted gross margin decreased 650 basis points to 38.3% in the fourth quarter of 2025, reflecting higher commodity costs, incremental tariff expenses, and lower volume, and a timing headwind related to the inventory valuation method.
In the quarter under review, adjusted operating profit of $529.3 million decreased 24.0% year over year.
Adjusted operating profit margin was 17.1%, down 700 basis points, pressured by higher commodity and tariff costs and increased selling, marketing, and administrative expenses.
Hershey exited the quarter with cash and equivalents worth $925.859 million.
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Hershey raised its quarterly dividend 6% to $1.452 per share from $1.37. The dividend is payable March 16, 2026, to stockholders of record as of February 17, 2026.
