Hershey Co

Company facts

Industry

Sugar & Confectionery Products

Headquarters

Hershey, Pennsylvania

Most recent report

10-Q, filed Oct 29, 2026

Incorporated

Delaware

Filings on record

1,002+ filings

On EDGAR

CIK 47111

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 4 of 13 sections worth reading, with 5 positive, 13 notable, and 3 negative flags.

• Financial Statements (Item 1)

  Financial statements and notes with acquisition, debt, and segment details.
  Notable

  • LesserEvil acquisition for $769M added $281.9M goodwill and $604.5M intangibles; contingent consideration up to $200M.
  • Repaid $500M of 2.300% Notes due Aug 2026; long-term debt fell to $4.69B from $5.18B.
  • AAA Initiative total costs since inception reached $211.9M; expected total $200M-$250M through 2026.
  • Effective tax rate dropped to 24.4% for nine months 2026 from 33.3%, due to tax reserves and foreign rate differentials.
  • Tax audits ongoing in Mexico, Canada, and US; outcome uncertain but adequate provision believed made.
  • Cumulative mark-to-market gains on commodity derivatives not yet allocated to segments: $596.3M.
  • Board approved $500M new buyback authorization in June 2026; $270M remains from 2023 program.

• Management's Discussion (Item 2)

  Core financial results with large profit swings, segment divergence, and cash flow details.
  Positive

  • Gross margin jumped to 46.1% in Q3 2026 from 32.6% a year ago, a 1,350 bps gain.
  • Operating profit rose 88% to $817.7M in Q3 2026, and operating profit margin hit 25.0%.
  • Net income more than doubled to $580.8M in Q3 2026, EPS diluted rose to $2.88 from $1.36.
  Notable

  • U.S. CMG market share declined despite 0.8% consumer takeaway growth in Q3 2026.
  • Working capital consumed $428.7M cash in first nine months 2026 vs $148.4M in 2025.
  Negative

  • Volume fell 10% in Q3 2026 and 7% in the first nine months, driven by price elasticity.
  • North America Salty Snacks segment income fell 18% in Q3 2026 despite 22% sales growth.
  • International segment swung to a $30.0M loss in Q3 2026 from a $13.6M loss a year ago.

• Market Risk (Item 3)

  Cocoa price collapse and surplus shift are material to Hershey's core input cost.
  Positive

  • Cocoa futures averaged $2.08/lb in Q1-Q3 2026, down 43% from $3.65/lb in 2025, a huge cost relief.
  • 2025-2026 cocoa season expected to end with a historically large surplus, reversing prior tightness.
  Notable

  • Net cash position fell to $241M from $707M, reducing interest income exposure.
  • Open commodity derivative notional fell to $646M from $973M, signaling reduced hedging as prices dropped.
  • A 10% drop in commodity prices would cut net unrealized losses by $51M, offset by lower purchase costs.

• Unregistered Sales and Repurchases (Item 2)

  No buybacks in Q3 2026; new $500M authorization approved in June 2026.
  Notable

  • Remaining $270M from December 2023 authorization still available for repurchases.

What changed: Sep 2026 vs. Jun 2026

About 2% of HSY's Sep 2026 10-Q is new information. 7 paragraphs were added, 176 changed, and 15 removed. Below are the most important lines SECSift identified.

• Item 2 65
• Item 1 50
• Item 3 6
• Item 6 3
• Item 4 2
• Item 5 1
• Item 1A 1