Chocolate company Hershey (NYSE: HSY) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 10.6% year on year to $3.10 billion. Its non-GAAP profit of $2.35 per share was 14.9% above analysts’ consensus estimates.
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Hershey (HSY) Q1 CY2026 Highlights:
- Revenue: $3.10 billion vs analyst estimates of $3.03 billion (10.6% year-on-year growth, 2.4% beat)
- Adjusted EPS: $2.35 vs analyst estimates of $2.04 (14.9% beat)
- Adjusted Operating Income: $640.7 million vs analyst estimates of $612.6 million (20.6% margin, 4.6% beat)
- Operating Margin: 20.6%, up from 13.2% in the same quarter last year
- Organic Revenue rose 7.9% year on year (beat)
- Sales Volumes fell 2% year on year (-15% in the same quarter last year)
- Market Capitalization: $38.34 billion
"We kicked off the year strong and are on track to hit our financial targets for 2026. Hershey's and Reese's are key drivers, delivering first quarter non-seasonal retail sales lifts of 11% and 10%, respectively. We are laser-focused on fueling core growth and making bold moves in brand investment, innovation, R&D, technology, and talent to drive our business to new heights," said Kirk Tanner, The Hershey Company President and Chief Executive Officer.
Company Overview
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $11.99 billion in revenue over the past 12 months, Hershey is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only a finite number of major retail partners, placing a ceiling on its growth. For Hershey to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets.
As you can see below, Hershey grew its sales at a sluggish 3.7% compounded annual growth rate over the last three years as consumers bought less of its products. We’ll explore what this means in the "Volume Growth" section.
This quarter, Hershey reported year-on-year revenue growth of 10.6%, and its $3.10 billion of revenue exceeded Wall Street’s estimates by 2.4%.
Looking ahead, sell-side analysts expect revenue to grow 2.9% over the next 12 months, similar to its three-year rate. This projection is underwhelming and indicates its newer products will not accelerate its top-line performance yet.
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Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
Hershey’s average quarterly sales volumes have shrunk by 2% over the last two years. This decrease isn’t ideal because the quantity demanded for consumer staples products is typically stable. 
In Hershey’s Q1 2026, sales volumes dropped 2% year on year. This result represents a further deceleration from its historical levels, showing the business is struggling to move its products.
Key Takeaways from Hershey’s Q1 Results
It was encouraging to see Hershey beat analysts’ organic revenue expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its gross margin slightly missed. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $189.19 immediately following the results.
Hershey had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
