The Hershey Company (NYSE:HSY) posted fourth-quarter results that surpassed market expectations on Tuesday, pushing shares up about 3.3% in premarket trading as investors responded positively to solid performance and a confident 2026 outlook. The confectionery and snacks group delivered adjusted earnings of $1.71 per share for the quarter, comfortably ahead of analyst projections of $1.40. Revenue increased 7% year-on-year to $3.09 billion, exceeding the consensus estimate of $2.97 billion.
For the full year 2025, Hershey generated consolidated net sales of $11.69 billion, representing a 4.4% rise from the previous year, while organic net sales, adjusted for currency movements, grew 4.2%.
Looking forward, the company issued a robust forecast for 2026, expecting adjusted earnings per share to fall between $8.20 and $8.52, notably above analyst expectations of $7.09. Hershey also anticipates overall net sales growth of 4% to 5%, supported by pricing actions, product innovation and higher marketing investment.
“As we enter 2026, we have strong conviction in the momentum of our business,” said Kirk Tanner, Hershey’s President and CEO. “I’m proud of how our teams have navigated a challenging environment, demonstrating operational excellence, impactful innovation, and skillful execution that is driving real results.”
Hershey’s largest division, North America Confectionery, recorded a 5.3% increase in quarterly sales to $2.48 billion, helped by roughly 10 percentage points of net pricing gains, which offset volume declines of about 5 percentage points tied to pricing sensitivity.
The North America Salty Snacks business delivered particularly strong growth, with sales surging 28% to $357 million. Organic sales advanced 18.2%, driven by solid retail demand and expanded variety pack offerings, while the acquisition of LesserEvil contributed approximately 10 percentage points to segment growth.
Despite the strong top-line performance, adjusted gross margin declined by 650 basis points to 38.3% in the quarter, largely due to higher commodity costs, additional tariff-related expenses and lower sales volumes.
Hershey expects improved gross margins alongside continued sales growth to underpin its 2026 performance, which it believes will more than offset increased strategic spending on brand development, operational capabilities and technology investments.