Research · Sep 3, 2026
[HSY] Hershey Thesis 2026: Cocoa Cost Crisis Hits Earnings, Recovery Bet Placed on FY26
Hershey FY25 (Dec 31, 2025) at $11.69B revenue (+4%). NI $883M; EPS $4.34 (-60%). Gross margin compressed from 47.3% to 33.3% on cocoa cost. Op income -51%. Snack business +18% Q4 with DD volume growth -- diversification offset. Reese's true campaign first in 8 years. FY26 guide: +4-5% net sales growth + meaningful earnings recovery on cocoa deflation + double-digit advertising increase.