The Hershey Company (NYSE:HSY) reported third-quarter earnings and revenue that beat Wall Street expectations, supported by strong pricing strategies, steady demand, and successful innovation across its product portfolio.
The chocolate and snack giant posted revenue of $3.18 billion, up 6.5% year-over-year, and ahead of the $3.11 billion consensus estimate.
Adjusted earnings per share came in at $1.30, comfortably exceeding the $1.06 forecast. Following the report, Hershey shares gained 0.8% in Thursday trading.
CEO Praises Innovation and Execution
President and CEO Kirk Tanner credited the strong quarter to brand strength and disciplined execution, saying: “Third quarter results surpassed expectations, as strong innovation, strategic brand investments, and market leading execution drove momentum across business segments. Based on our results year-to-date, we are raising our full year outlook for net sales and earnings per share.”
Segment Performance
- North America Confectionery, Hershey’s largest division, saw sales rise 5.6% to $2.62 billion.
- North America Salty Snacks continued to expand rapidly, climbing 10% to $321 million.
- The International segment led growth with a 12.1% increase to $244.8 million.
Organic, constant-currency sales rose 6.2%, driven primarily by pricing gains of around 6%, while volumes were slightly positive.
Margins Under Pressure
Despite the robust top-line performance, Hershey faced margin compression due to elevated input costs.
Adjusted gross margin declined 850 basis points to 31.8%, as higher commodity and tariff costs, along with unfavorable product mix, offset benefits from pricing and productivity improvements.
Updated Outlook
Building on its year-to-date strength, Hershey raised its 2025 full-year guidance, now projecting net sales growth of roughly 3%, up from prior guidance of “at least 2%.”
The company also narrowed its adjusted EPS decline forecast to 36–37%, compared to the earlier range of 36–38%.
Hershey noted that this guidance excludes any impact from its proposed acquisition of LesserEvil, which remains under review.