The Hershey Company

HSY
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$3.1B
Q1 2026 · +10.6% YoY
TTM ROIC
12.7%
FY2025 · NOPAT / Invested Capital (Equity + LT Debt - Cash) · WACC ~9% · Moat spread +3.7pp

Financial Snapshot

ticker: HSY step: 04 generated: 2026-05-12 source: quick-research

The Hershey Company (HSY) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $10.42B $11.16B $11.20B +0.3%
Gross Margin ~44% ~44% ~47% +3pp
Operating Margin ~22% ~25% ~26% +1pp
Net Income ~$1.64B ~$1.87B ~$1.90B +2%
EPS (diluted) ~$8.00 ~$9.09 ~$9.30 +2%

Note: FY2024 gross margin was boosted by favorable derivative mark-to-market gains on cocoa hedges; adjusted gross margin was ~44.8%. FY2025 is a step-down year — adjusted EPS fell mid-30% range due to historic cocoa cost headwinds.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$2.3B
Free Cash Flow ~$1.7–1.9B
Cash & Equivalents ~$0.5B
Total Debt ~$5.0B

Key Ratios (approximate)

  • P/E: ~18x (FY2026 recovery) | EV/EBITDA: ~13x | FCF Yield: ~5%
  • Revenue Growth (FY2024): +0.3% | FCF Margin: ~15–17%
  • Dividend Yield: ~3.5% | Dividend Growth: 14+ consecutive years of increases

Growth Profile

Hershey had a strong 2022–2023 growth phase driven by pricing power and post-pandemic demand recovery. FY2024 was essentially flat on revenue (+0.3%) as volume recovered but pricing moderated. FY2025 was a margin compression year — historic cocoa prices (cocoa hit all-time highs in 2024) caused adjusted EPS to fall mid-30%, to approximately $6.50–7.00. The company is guiding FY2026 for a meaningful recovery: net sales +4–5% and adjusted EPS +30–35% as cocoa futures normalize, pricing actions take hold, and the salty snacks segment contributes higher growth.

Forward Estimates

  • FY2025 Actual: Revenue ~$11.7B (+4.4%); adjusted EPS ~$6.80–7.00 (down ~30% from FY2024 on cocoa costs)
  • FY2026 Guidance: Net sales +4–5%; adjusted EPS +30–35% recovery (implying ~$9.00–$9.50); gross margin expansion of ~570bps YoY already visible in Q1 2026 (+570bps to 39.4%)
  • Dividend: $1.40/quarter ($5.60/year), yield ~3.5%; management raised dividend in conjunction with 2026 guidance

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $HSY.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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