A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q2 FY2026, Hershey delivered strong top-line growth of 6.6% YoY to $2.79B and a 629.7% surge in net income to $457.67M, driven by 12% price realization and favorable commodity derivative mark-to-market adjustments.
Revenue
$2.79B
+6.60% YoY
Gross Margin
45.3%
+14.9 pts YoY
Operating Income
$642.64M
+233.30% YoY
Filed · Source: SEC EDGAR 10-Q filing
Hershey (HSY) reported Q2 FY2026 revenue of $2.79B, up 6.6% year over year. The company posted net income of $457.67M, up 629.7% from a year earlier. Gross margin was 45.3%. Operating income was $642.64M, up 233.3% year over year. HSY's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Hershey reported Q2 FY2026 revenue of $2.79B (+6.6% YoY) and net income of $457.67M (+629.7% YoY), supported by price realization and expanding gross margins.
Last 4 quarters: 4 beats
Reported EPS of $1.90 versus the $1.44 analyst consensus — a +31.9% beat for Jun 2026.
Consolidated net sales increased 6.6% YoY to $2,787.3M in Q2 FY2026. This was driven by a favorable price realization of approximately 12% across North America Confectionery and International segments, as well as a 3% inorganic boost from the LesserEvil acquisition, which partially offset an 8% volume drop caused by price elasticity.
Source: 10-Q Item 2 MD&A, p.38
Gross margin expanded 1,490 basis points YoY to 45.3% in Q2 FY2026, up from 30.5% in Q2 FY2025. The expansion was propelled by pricing gains, AAA Initiative operational savings, and $117.4M of favorable mark-to-market commodity derivative gains, driving Q2 operating income up 233.3% YoY to $642.6M.
Source: 10-Q Item 2 MD&A, p.39
North America Confectionery net sales grew 4.2% to $2,173.6M with segment income expanding 40.1% to $705.8M. North America Salty Snacks net sales surged 22.9% to $387.8M due to the LesserEvil acquisition. International net sales grew 5.7% to $225.9M, but posted a segment loss of $5.1M due to higher commodity, manufacturing, and marketing expenses.
Source: 10-Q Item 2 MD&A, p.41-42
Cumulative six-month operating cash flow increased 74.5% YoY to $888.1M, primarily due to net income expansion and working capital timing. Full-year 2026 capital expenditures are expected to normalize between $425M and $475M as major strategic initiatives wind down.
Source: 10-Q Item 2 MD&A, p.42-43
Although cocoa commodity price volatility improved in the first six months of 2026, persistent fluctuations in agricultural input costs and global supply chain pressures could impact future cost of sales and lower operating margins.
Source: 10-Q Item 2 MD&A, p.37
Strategic pricing increases led to an 8% volume drop in Q2 FY2026 within the North America Confectionery and International segments, reflecting heightened consumer sensitivity that could pressure future sales volume if macro pressures persist.
Source: 10-Q Item 2 MD&A, p.38
Ongoing trade policy developments, potential import tariffs from key sourcing countries like Canada and Mexico, and geopolitical uncertainty in the Middle East present risks of supply disruption and elevated operational costs.
Source: 10-Q Item 2 MD&A, p.37
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the HSY earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.79B | $2.61B | +6.60% |
Cost of Revenue | $1.52B | $1.82B | -16.19% |
Gross Profit | $1.26B | $796.27M | +58.65% |
Operating Income | $642.64M | $192.81M | +233.30% |
Net Income | $457.67M | $62.72M | +629.71% |
SG&A Expense | $620.55M | $603.21M | +2.88% |
While official consensus numbers are not included in SEC filings, Hershey reported diluted EPS of $2.26 for Q2 FY2026, up 629.0% YoY from $0.31. Net sales grew 6.6% YoY to $2.79B, driven by 12% pricing gains and acquisition contributions.
The key takeaways were significant margin expansion and profit growth. Gross margin rose to 45.32% and operating profit surged 233.3% YoY to $642.64M, supported by pricing realization, supply chain savings, and mark-to-market commodity gains.
North America Confectionery sales grew 4.2% to $2.17B with segment income up 40.1% to $705.8M. North America Salty Snacks sales jumped 22.9% to $387.8M due to the LesserEvil acquisition, while International sales grew 5.7% to $225.9M despite recording a $5.1M segment loss.
Expected release date, analyst estimates & what to watch
Hershey delivered a strong Q1 2026 with revenue up 10.6% to $3.10B and net income nearly doubling (+94.1%) to $435.1M, driven by significant gross margin expansion of 5.7 percentage points to 39.4%.
Hershey (HSY) reported FY2025 revenue growth of 4.4% to $11.69B, but profitability collapsed as surging cocoa and input costs drove gross margin down nearly 14 percentage points to 33.5%, causing net income to plunge 60.2% to $883M.
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