AI-extracted from the 10-Q filed 2026-07-30 — Q2 FY2026 (quarter ended June 28, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Hershey's Q2 net sales rose 6.6% to $2.79B on pricing actions, while plunging cocoa costs drove gross margin to 45.3% from 30.5% and net income up 630% to $457.7M.
Biggest Revenue Drivers
North America Confectionery$2,173.6M+4.2% YoY
Favorable price realization of ~14% from 2025 pricing action, partially offset by ~10% volume decline driven by price elasticity
North America Salty Snacks$387.8M+22.9% YoY
LesserEvil acquisition contributed ~22%; volume grew ~4% led by Dot's Homestyle Pretzels, partly offset by ~3% price decline from higher trade promotions
Biggest Revenue Drivers
Total revenue: $2.79B+6.6% YoY
North America Confectionery$2,173.6M+4.2% YoY
Favorable price realization of ~14% from 2025 pricing action, partially offset by ~10% volume decline driven by price elasticity
North America Salty Snacks$387.8M+22.9% YoY
LesserEvil acquisition contributed ~22%; volume grew ~4% led by Dot's Homestyle Pretzels, partly offset by ~3% price decline from higher trade promotions
International$225.9M+5.7% YoY
Favorable price realization ~10% and ~4% FX benefit, partially offset by ~8% volume decline from price elasticity
Largest Expense Items
Cost of sales$1,524.0M-16.2% YoY
Lower sales volume, transformation program savings, and $117.4M favorable mark-to-market on commodity derivatives, partly offset by higher supply chain costs and unfavorable mix
Higher capability and technology investments, partially offset by lower compensation/benefit costs and AAA Initiative savings
Interest expense, net$50.0M+8.5% YoY
Increase in short-term debt, slightly offset by lower long-term debt balances
Margins: Gross margin rose to 45.3% from 30.5% (+1,490 bps) on favorable price realization, AAA Initiative savings, and favorable commodity mark-to-market activity, partly offset by unfavorable supply chain costs and volume declines. Operating margin improved to 23.1% from 7.4%.
Watch Items from the Filing
Average cocoa futures price fell to $1.80/lb in H1 2026, down ~51% from the 2025 annual average of $3.65/lb amid a forecast supply surplus, a key tailwind to margins.
International segment swung to a $5.1M operating loss from $19.8M income a year ago, driven by higher commodity/manufacturing costs and advertising investment.
U.S. candy, mint & gum consumer takeaway fell 8.6% with market share decline in Q2, indicating pricing-led growth is coming at the expense of volume and share.
Board approved an additional $500 million share repurchase authorization in June 2026, on top of ~$270 million remaining under the 2023 program.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Curoe Timothy WilliamDirectorGrant or award · Oct 1, 2026
Mahlan DeirdreDirectorGrant or award · Oct 1, 2026
Nalebuff Barry JamesDirectorGrant or award · Oct 1, 2026
Ozan Kevin MDirectorGrant or award · Oct 1, 2026
Park Joseph RyanghoDirectorGrant or award · Oct 1, 2026
Persaud GuyDirectorGrant or award · Oct 1, 2026
Singleton Harold IIIDirectorGrant or award · Oct 1, 2026
Kraus Maria TDirectorGrant or award · Oct 1, 2026
Congress trading in HSY
35 transactions in HSY reported by 14 members of Congress under the STOCK Act, most recent trade Feb 10, 2026. Reported transactions, not recommendations.
About HERSHEY CO (HSY): stock profile, AI score and financials
HERSHEY CO (HSY) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Staples sector company. 13F Pro's AI-powered ranking engine scores HSY at 65.6/100 on a composite quality score built from its SEC filings, placing it at rank #466 of 2,925 stocks — the top 25% of the AI-ranked universe. HSY scores in the top quartile across revenue scale (87.8), balance sheet strength (86.8), institutional flow (79.9). Based on the latest XBRL financial filings (Q2 2026), HERSHEY CO reports quarterly revenue of $2.8B, net income of $457.7M, an operating margin of 23.1%. Top institutional holders of HSY by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. HSY trades on the NYSE exchange and files with the SEC under CIK 47111. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate HSY daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for HERSHEY CO directly from SEC EDGAR.