The Hershey Company Reports 10.6% Revenue Growth to $3.1 Billion in Q1 2026

The Hershey Company reported a significant increase in financial performance for the first quarter of 2026, with net sales reaching $3.1 billion, a 10.6% increase from $2.8 billion in the same period last year. The growth was primarily driven by favorable pricing actions, which contributed approximately 10% to sales, alongside a 2% benefit from the acquisition of LesserEvil, LLC, a company specializing in organic popcorn and snacks. However, the company experienced a volume decrease of about 2%, mainly in the North America Confectionery and International segments, which offset some of the gains.

Gross profit for the quarter was $1.2 billion, reflecting a 29.5% increase compared to $944.3 million in Q1 2025. This resulted in a gross margin of 39.4%, up from 33.7% a year earlier. The increase in gross profit was attributed to higher net sales and improved pricing, despite facing higher commodity and tariff costs. Operating profit surged to $640.7 million, a 73.5% increase from $369.2 million in the prior year, with an operating profit margin of 20.6%, up from 13.2%. The company’s net income also saw a substantial rise, reaching $435.1 million, a 94.1% increase from $224.2 million in Q1 2025.

In terms of strategic developments, Hershey completed the acquisition of LesserEvil in November 2025, which has been integrated into its North America Salty Snacks segment. This acquisition is expected to enhance Hershey's product offerings and manufacturing capacity. The company also reported a decrease in business realignment costs, which fell to $6 million from $16.4 million in the previous year, as part of its ongoing efforts to streamline operations and improve efficiency.

Operationally, Hershey's total U.S. retail takeaway increased by 9.3% in the first quarter, with a notable 8.1% rise in candy, mint, and gum consumer takeaway. The North America Salty Snacks segment reported a 26% increase in net sales, largely due to the LesserEvil acquisition, while the International segment saw a 16.1% increase in sales, driven by favorable pricing and foreign currency exchange rates. The company’s employee headcount remained stable, supporting its operational needs amid these changes.

Looking ahead, Hershey anticipates continued challenges from rising commodity costs and geopolitical uncertainties, including the impact of tariffs and the ongoing conflict in the Middle East. The company remains focused on maintaining liquidity and managing costs effectively while pursuing growth opportunities through strategic acquisitions and product innovations. Hershey's management expressed confidence in its ability to navigate the current economic landscape and achieve its long-term objectives.