Hershey reported a mixed fourth quarter with net sales growth driven by pricing, but a significant decline in reported net income and EPS. Full-year 2025 also saw revenue growth alongside a substantial drop in profitability. The company provided a 2026 outlook anticipating strong reported EPS growth, driven by expected margin recovery and acquisition benefits.
Consolidated net sales increased 7.0% to $3,091.0 million in Q4 2025, with organic, constant currency net sales up 5.7%.
positiveFull-year 2025 consolidated net sales increased 4.4% to $11,692.6 million.
positiveNorth America Salty Snacks segment net sales increased 28.0% in Q4 2025, with organic growth of 18.2% driven by volume.
positive2026 Full-year reported net sales are expected to increase between 4% and 5%.
positiveReported net income decreased 59.9% to $320.0 million in Q4 2025, and reported EPS-diluted decreased 59.9% to $1.57.
negativeAdjusted EPS-diluted decreased 36.4% to $1.71 in Q4 2025.
negativeReported net income for full-year 2025 decreased 60.3% to $883.3 million, and reported EPS-diluted decreased 60.3% to $4.34.
negativeAdjusted EPS-diluted for full-year 2025 decreased 32.7% to $6.31.
negativeReported gross margin decreased 17.0 percentage points to 37.0% in Q4 2025, reflecting lap of prior year gains, higher commodity costs, and lower volume.
attentionAdjusted gross margin decreased 650 basis points to 38.3% in Q4 2025.
attentionReported operating profit margin decreased 18.1 percentage points to 14.4% in Q4 2025.
attentionAdjusted operating profit margin decreased 700 basis points to 17.1% in Q4 2025.
attentionNorth America Confectionery segment income decreased 10.7% in Q4 2025, with segment margin decreasing 520 basis points to 29.1%.
attentionInternational segment loss was $31.6 million in Q4 2025, a decline of $61.1 million versus prior year, with segment margin at (12.4)%.
negativeInventories increased to $1,429.3 million in Q4 2025 from $1,254.1 million in Q4 2024.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
North America Confectionery | N/A | — | — | — | +5.0% |
North America Salty Snacks | N/A | — | — | — | +18.2% |
International | N/A | — | — | — | -1.9% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Strong conviction in the momentum of our business as we enter 2026.
Teams have navigated a challenging environment demonstrating operational excellence, impactful innovation, and skillful execution.
Building capabilities and brand investments to position for continued success.
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