HSY · 10-Q · 2026Q3 · Full report

Operating Income and Margins

HERSHEY CO · 2026-10-29 · Importance 69 · Surprise 64 · Contradicted

Third-quarter operating profit increased 88.1% to $817.7 million and operating margin rose to 25.0% from 13.7%, primarily on higher gross profit, partly offset by increased SM&A. First-nine-month operating profit rose 110.8% to $2,101.0 million, with operating margin up to 22.9% from 11.6%. The first-nine-month increase reflected higher gross profit and lower realignment costs, partly offset by higher SM&A expense.

Key facts

• Third-quarter 2026 operating profit was $817.7 million, up $383.1 million or 88.1% from $434.6 million in third-quarter 2025. source
• First-nine-months 2026 operating profit was $2,101.0 million, up $1,104.4 million or 110.8% from $996.6 million in the same period of 2025. source
• Third-quarter operating profit margin increased to 25.0% in 2026 from 13.7% in 2025. source
• First-nine-months operating profit margin increased to 22.9% in 2026 from 11.6% in the same period of 2025. source
• Third-quarter 2026 other expense was $1.0 million, compared with $11.2 million in third-quarter 2025; the decrease was predominantly driven by a $10.6 million decrease in non-service pension and other post-retirement benefit costs. source
• First-nine-months 2026 other expense was $3.6 million, compared with $9.8 million in the first nine months of 2025; the decrease was predominantly driven by a $9.5 million decrease in non-service pension and other post-retirement benefit costs, partly offset by $3.3 million lower other corporate income. source
• Disruptions, failures, or security breaches of HERSHEY CO's information technology infrastructure could negatively affect its operations and financial results. source
• Complications with the design or implementation of HERSHEY CO's enterprise resource planning system could adversely affect its business and operations. source

Impact estimates