HSY · 8-K · 20261029PR068046

Operating Margin Drivers

HERSHEY CO · 2026-10-29 · Importance 69 · Surprise 64 · No source text

Reported operating profit increased 88.1% to $817.7 million in Q3 2026, and reported operating margin rose 1,130 basis points to 25.0%. Adjusted operating profit increased 78.5% to $754.0 million, while adjusted operating margin increased 970 basis points to 23.0%. Margin gains reflected price realization, productivity savings, tariff refunds and lower net commodity costs, which more than offset lower volume, higher freight and logistics expenses, and increased marketing and technology investment.

Key facts

• Hershey’s third-quarter 2026 reported operating profit was $817.7 million, up 88.1%, and reported operating profit margin was 25.0%, up 1,130 basis points year over year. source
• Hershey’s third-quarter 2026 adjusted operating profit was $754.0 million, up 78.5% year over year. source
• Hershey’s third-quarter 2026 adjusted operating profit margin was 23.0%, up 970 basis points year over year. source
• Hershey’s third-quarter 2026 reported operating profit margin increase reflected favorable derivative mark-to-market gains. source
• Third-quarter 2026 reported and adjusted operating profit margin increases reflected net price realization, productivity savings, tariff refunds and lower net commodity costs, which more than offset lower volume, higher freight and logistics expenses, and increased marketing and capability and technology investments. source

Impact estimates