Hershey issues strong 2026 outlook as price hikes offset cautious consumer demand 

USA – Hershey has issued a confident outlook for 2026, projecting that price increases announced last year will support revenue and profit growth even as consumer sentiment remains cautious. 

The U.S.-based snacks and confectionery company said it now expects less volume sensitivity from its pricing actions than previously anticipated.  

Hershey announced in mid-2025 that it would implement double-digit percentage price increases to offset surging cocoa costs following severe supply disruptions in West Africa, which produces about 70% of the world’s cocoa. 

The company said the pricing actions, combined with product innovation and marketing investments, are expected to drive organic sales growth of between 2.5% and 3.5% in 2026. 

Chief Financial Officer Steven Voskuil said the forecast reflects a cautious assessment of demand risks. “This outlook incorporates prudent assumptions for potential demand headwinds, including accelerated health and wellness trends and increasing GLP-1 adoption, government policy changes, and ongoing consumer financial strain,” Voskuil said. 

Hershey reported mixed financial results for the fourth quarter. Operating profit fell 52.6% year-on-year to US$444.9 million, while the operating profit margin declined by 18.1 percentage points to 14.4%. Reported net income dropped 59.9% to US$320 million. 

Management attributed the declines to higher commodity and tariff costs, as well as increased selling, marketing and administrative expenses. These pressures were partially offset by favorable net price realization, cost savings initiatives and supply chain productivity improvements. 

Despite profitability pressure, consolidated net sales increased 7% in the quarter to US$3.09 billion. Organic, constant-currency net sales rose 5.7%, driven by pricing gains, although elasticity-driven volume declines were recorded in both the North America confectionery and international segments. 

By business segment, North America confectionery sales rose 5.3%, while North America salty snacks sales surged 28%, supported by brands such as SkinnyPop and Dot’s Pretzels. International sales were broadly flat, increasing 0.4%. 

For the full year, Hershey reported consolidated net sales growth of 4.4% to US$11.69 billion. Net income for the year fell sharply by 60% to US$883.3 million, reflecting sustained cost pressures throughout the year. 

Hershey said U.S. snacking trends remained resilient during the quarter, supported by strong brand loyalty and seasonal demand during Halloween, the company’s largest sales period. 

Looking ahead, Hershey expects 2026 net sales growth of between 4% and 5%, above analysts’ expectations of 2.69%, according to LSEG data.  

The company also forecast adjusted earnings per share in the range of US$8.20 to US$8.52, compared with market expectations of US$7.15. 

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