The Hershey Company posted second-quarter 2026 consolidated net sales of $2,787.3 million, a 6.6% increase versus the prior-year period, as double-digit pricing in its core confectionery franchise more than offset meaningful volume declines across North America and international markets. Adjusted earnings per share of $1.90 climbed 57.0%, and reported net income of $457.7 million surged 629.0% year-over-year — the latter figure heavily influenced by favorable swings in commodity derivative mark-to-market positions relative to a loss-heavy Q2 2025.
Confectionery Holds the Line
The North America Confectionery segment, which accounts for the bulk of Hershey's c-store-relevant candy, mint, and gum volume, generated net sales of $2,173.6 million in the quarter, up 4.2%, with organic growth matching that figure at 4.2%. Approximately 14 points of net price realization drove the gain, while volume dropped roughly 10 points, reflecting price elasticity, normal shipment variability, and some retailer inventory replenishment. For the 12-week period ended July 19, 2026, Hershey's U.S. CMG retail takeaway in the multi-outlet plus convenience store channel (MULO+ w/ Convenience) rose 3.7%, though the company acknowledged its CMG share slipped year-over-year as competitors stepped up innovation activity. Segment income advanced 40.1% to $705.8 million, lifting segment margin to 32.5% — an 830-basis-point improvement fueled by pricing leverage and lower net commodity costs.
For c-store operators, the pricing trajectory bears watching. Candy, mint, and gum remain a top-three inside-sales category for most convenience retailers, and Hershey's ability to sustain 14 points of organic price realization underscores supplier confidence in consumer demand elasticity — even as unit volumes slip. Operators sourcing planogram resets for the back half should expect continued list-price firmness.
Salty Snacks and the LesserEvil Effect
The North America Salty Snacks segment posted the headline growth number — net sales up 22.9% to $387.8 million — but the LesserEvil acquisition, closed in 2025, contributed roughly 22 percentage points of that gain. Strip out the deal and organic constant-currency growth was just 0.6%. Volume increased approximately 4 points, below internal expectations, as multipack execution challenges and softness in Dot's pretzels partially offset strong innovation velocity. Salty snacks retail takeaway for the 12-week period ended June 28, 2026, excluding LesserEvil, rose 6.5% in MULO+ w/ Convenience, and Hershey noted further salty snack market share gains. Segment income fell 5.9% to $62.6 million and segment margin contracted 500 basis points to 16.1%, pressured by higher logistics costs and increased consumer marketing behind new item launches.
The International segment reported net sales of $225.9 million, up 5.7%, with organic constant-currency growth of 2.1%. Higher raw material and manufacturing costs drove the segment to a $5.1 million loss, versus $19.8 million in profit a year earlier — a $24.9 million swing that management attributed partly to geopolitical inventory pre-builds that depleted in Q2.
Full-Year Outlook Tightened
Hershey narrowed its 2026 full-year guidance on nearly every metric. Net sales growth is now projected at 4.5%–5%, the low end raised from 4%; organic net sales growth moves to 3%–3.5% from a prior 2.5%–3.5% range. Adjusted EPS guidance tightens to $8.36–$8.52, implying 32.5%–35% growth versus 2025. The company targets approximately $100 million in Advancing Agility & Automation Initiative savings and capital expenditures of $425 million–$475 million. Management noted the outlook excludes any potential future tariff rebates, a meaningful caveat given ongoing commodity and trade policy uncertainty.
Kirk Tanner, The Hershey Company President and Chief Executive Officer, described the first half as "strong" and said Hershey enters the second half with "compelling growth plans and increased investment behind our brands, merchandising, and innovation." For convenience channel buyers, that investment signal points to continued promotional and new-item activity in both the candy and salty snack sets through year-end.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
