Hershey's (HSY) Q4 results are likely to beat estimates, backed by strong consumption trends across core categories, RBC Capital Markets said in a note Tuesday.

RBC said scanner data for Q4 points to consumption growth of about 6.9% at the company level, led by roughly 6% growth in confection and about 14.8% growth in salty snacks.

The firm said November consumption was particularly strong, while international sales are expected to decline by low-single digits.

RBC noted that the removal of reciprocal cocoa tariffs in November will have a positive impact on gross margins, with savings likely to be reinvested to improve sales.

For 2026, the firm models about 2% organic revenue growth and EPS of $6.97, noting that the company is expected to issue 2026 guidance alongside Q4 results on Thursday.

RBC maintained its sector perform rating on Hershey and $185 price target.

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