Hershey's stock soared 6.42% during intraday trading on Thursday, driven by the company's better-than-expected fourth-quarter financial results and an optimistic outlook for 2026 that significantly exceeded analyst projections.
The confectionery giant reported adjusted earnings of $1.71 per share for Q4 2025, surpassing the consensus estimate of $1.40. Net sales rose 7% to $3.09 billion, also beating expectations of $2.98 billion. The company's North America salty snacks segment showed particularly strong performance with 28% growth, aided by the LesserEvil acquisition.
For the full year 2026, Hershey issued guidance that exceeded Wall Street forecasts, projecting adjusted earnings per share in the range of $8.20 to $8.52 compared to the consensus estimate of $7.07. The company expects net sales growth of 4% to 5% and anticipates delivering $230 million in efficiency and transformation program savings. Management noted they now expect slightly lower volume sensitivity to pricing actions than previously planned, indicating confidence in their pricing strategy despite ongoing cocoa cost pressures.