Hershey Q2 2026 Results: Sales Beat, Guidance Tightened
Hershey Q2 2026 results showed a sales beat; the company narrowed full-year guidance and raised the quarterly dividend, reinforcing a cash-return focus.

KEY TAKEAWAYS
- Hershey posted Q2 net sales of $2.8 billion, up 6.6% year-over-year.
- Adjusted diluted EPS rose to $1.90, beating expectations and supporting earnings momentum.
- Company narrowed 2026 guidance to net sales growth of 4.5%–5.0% and higher reported EPS growth.
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The Hershey Company (NYSE: HSY) said in a July 30, 2026 press release that its Q2 2026 results showed stronger-than-expected sales, prompting management to narrow full-year guidance and raise the quarterly dividend. Pricing and demand for salty snacks helped offset cautious consumer spending.
Results and Outlook
Hershey reported consolidated net sales of $2.79 billion for the quarter ended June 28, 2026, up 6.6% year-over-year, with organic, constant-currency net sales growth of 3.6%. Reported net income rose to $458 million, and reported diluted earnings per share (EPS) reached $2.26, both up 629% from the prior year. Adjusted diluted EPS increased 57% to $1.90. First-half consolidated net sales totaled $5.89 billion, up 8.7% year-over-year.
The company narrowed its full-year 2026 guidance to net sales growth of 4.5% to 5.0% and reported EPS growth of 82% to 89%, excluding potential future tariff rebates. Analysts had forecast roughly 0.7% net sales growth to about $2.63 billion, making the results a clear sales beat against prior expectations. Management said the company is entering the second half with momentum.
Dividend and Sales Drivers
On July 30, 2026, Hershey’s board declared a quarterly dividend of $1.452 per common share and $1.320 per Class B common share, translating to an annualized payout of about $5.81 per share. This comes amid payout ratios near 108% on a trailing basis.
Segment performance showed North America Confectionery net sales of $2.17 billion, up 4.2% year-over-year; North America Salty Snacks net sales of $388 million, up 22.9%, including contributions from LesserEvil; and international net sales of $226 million, up 5.7%.
Management attributed the quarter’s strength to strategic pricing, productivity improvements, and lower commodity costs. Steady demand for core brands such as Reese’s and Dot’s Pretzels helped offset cautious consumer spending. The rapid growth in salty snacks and contributions from recently acquired brands improved the overall sales mix, supporting margin recovery and increased cash returns.
The stronger first half and narrowed guidance reflect management’s confidence in the durability of pricing and efficiency gains, while noting the outlook excludes certain one-time items.
Strategic Implications
The sharp rise in reported EPS partly reflects a low comparison base from fiscal 2025, when revenue was about $11.7 billion and net income near $883 million. First-quarter 2026 results had already shown improving profit trends. Combined with productivity gains and reduced commodity expenses, these factors explain the significant year-over-year earnings increase.
Together, the sales beat, tightened guidance, and higher dividend signal management’s view that pricing and operational improvements can sustain earnings and cash returns through the second half of 2026.





