HSY · 10-Q · 2026Q3 · Full report

Operating Expense Trends

HERSHEY CO · 2026-10-29 · Importance 42 · Surprise 40 · In source text

Third-quarter SM&A expense increased 15.4% to $692.8 million, with non-advertising SM&A up 14.5% due to capability and technology investment and advertising and consumer marketing up 17.1%. First-nine-month SM&A increased 7.2% to $1,889.4 million, as capability and technology spending lifted non-advertising SM&A 7.6% and advertising and consumer marketing rose 6.4%. First-nine-month unallocated corporate expense rose 16.0% to $622.3 million, driven by technology investment and acquisition and integration costs, partly offset by lower compensation and benefits.

Key facts

• Third-quarter 2026 unallocated corporate expense was $249.5 million, up $54.8 million or 28.1% from $194.7 million, primarily due to technology investments and higher acquisition and integration costs, partly offset by lower compensation and benefits costs. source
• Third-quarter 2026 SM&A expenses were $692.8 million, up $92.3 million or 15.4% from $600.5 million in third-quarter 2025. source
• First-nine-months 2026 unallocated corporate expense was $622.3 million, compared with $536.7 million in the first nine months of 2025, primarily driven by technology investments and higher acquisition and integration costs, partly offset by lower compensation and benefits costs. source
• First-nine-months 2026 SM&A expenses were $1,889.4 million, up $127.0 million or 7.2% from $1,762.4 million in the same period of 2025. source
• Third-quarter SM&A expenses excluding advertising and related consumer marketing increased 14.5%, driven by higher capability and technology investments, partly offset by lower compensation and benefit costs and AAA Initiative savings. source
• Third-quarter advertising and related consumer marketing expenses increased 17.1%, driven by expanded national brand campaigns in North America Confectionery and North America Salty Snacks. source
• First-nine-months SM&A expenses excluding advertising and related consumer marketing increased 7.6%, driven by higher capability and technology investments. source
• First-nine-months advertising and related consumer marketing expenses increased 6.4%, driven by increased spending across all segments. source

Impact estimates