The Hershey Company (NYSE:HSY) reported stronger-than-expected first-quarter results on Thursday, though shares slipped 1.6% as investors focused on a slightly weaker-than-expected full-year outlook.
Adjusted earnings per share came in at $2.35, comfortably above the $2.04 analyst consensus by $0.31.
Revenue reached $3.1 billion, topping the $3.02 billion estimate and rising 10.6% compared with the same quarter last year.
Organic net sales, measured at constant currency, increased 7.9%, driven primarily by around 10% pricing gains, which were partially offset by a 2% decline in volumes.
For fiscal 2026, Hershey reaffirmed its adjusted EPS guidance range of $8.20 to $8.52. However, the midpoint of $8.36 is slightly below the $8.40 consensus forecast. The company expects full-year net sales to grow between 4% and 5%.
“We kicked off the year strong and are on track to hit our financial targets for 2026. Hershey’s and Reese’s are key drivers, delivering first quarter non-seasonal retail sales lifts of 11% and 10%, respectively,” said President and CEO Kirk Tanner.
By segment, North America Confectionery sales rose 8.3% to $2.49 billion, while North America Salty Snacks revenue surged 26.0% to $350.1 million, supported by the acquisition of LesserEvil. International sales climbed 16.1% to $264.2 million.
Adjusted gross margin declined by 80 basis points to 40.4%, reflecting higher input costs and tariff-related pressures, although this was partly offset by pricing actions and improved supply chain efficiency.