Price increases - Net price realization drove sales growth across segments, especially in North America Confectionery, though volume declined due to price elasticity.
Acquisition impact - The LesserEvil acquisition contributed 2.7 percentage points to total company sales growth and 22 points to Salty Snacks segment growth.
Cost savings and lower commodity costs - Gross margin gains were driven by lower net commodity costs and productivity program savings, which more than offset higher logistics expenses and unfavorable mix.
Q2 results beat expectations
U.S. confectionery and snacks maker's Q2 sales rose 6.6%, beating analyst expectations.
Adjusted EPS for Q2 increased 57% to $1.90, beating analyst expectations.
Company raised full-year 2026 sales and adjusted EPS growth guidance.
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell".
The average consensus recommendation for the food processing peer group is "hold".
Wall Street's median 12-month price target for Hershey Co is $208.00, about 13.1% above its July 29 closing price of $183.91.
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago.
2026 outlook
Hershey expects 2026 net sales growth outlook of 4.5%-5%.
Company expects 2026 organic net sales growth of 3%-3.5%.
Hershey sees 2026 adjusted EPS between $8.36 and $8.52.
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