Hershey (NYSE:HSY) Tops Q3 2025 Earnings and Revenue Estimates

HERSHEY CO/THE (NYSE:HSY) delivered financial results for the third quarter of 2025 that surpassed analyst expectations on both the top and bottom lines. The chocolate and confectionery giant reported strong sales growth and significant earnings outperformance, though the market's initial reaction appeared muted with the stock trading slightly lower in pre-market activity following the announcement.

Third Quarter Performance Versus Expectations

The company's latest quarterly results demonstrated robust operational performance compared to Wall Street's projections. Hershey reported revenue of $3.18 billion for the quarter ended September 28, 2025, representing a 6.5% increase compared to the same period last year.

Key financial metrics compared to estimates include:

• Revenue: $3.18 billion actual versus $3.14 billion estimated
• Non-GAAP EPS: $1.30 per share actual versus $1.08 estimated

The earnings per share figure of $1.30 represents a substantial 22.2% beat over analyst consensus estimates, indicating stronger profitability than anticipated. This earnings outperformance suggests the company effectively managed costs and margins despite ongoing economic pressures affecting the consumer staples sector.

Updated Full-Year Outlook

Hershey provided an updated outlook for full-year 2025, reflecting increased confidence in the company's performance trajectory. While specific numerical guidance wasn't provided in the available context, the raised outlook suggests management expects the positive momentum from the third quarter to continue through the remainder of the year. This revised guidance appears to align with analyst expectations for the full year, which include estimated revenue of $11.62 billion, though the company's specific targets may exceed these projections given the upward revision.

Market Reaction and Price Action

Despite the earnings beat and raised guidance, Hershey's stock showed a modest decline in pre-market trading, down approximately 0.84%. This reaction may reflect several factors, including potential concerns about sustainability of growth through price increases or broader market conditions affecting consumer staples stocks. The stock's recent performance has shown some weakness across multiple timeframes:

• Last week: -4.8%
• Last two weeks: -8.5%
• Last month: -7.2%

The disconnect between strong fundamental performance and negative price action suggests investors may be focusing on forward-looking concerns rather than the positive quarterly results. This could include apprehension about consumer spending patterns in an uncertain economic environment or questions about whether price increases can continue to drive growth without impacting volume.

Strategic Context and Business Segments

Hershey's diversified portfolio across confectionery and salty snacks has provided stability amid changing consumer preferences. The company's North America Confectionery segment continues to be the cornerstone of its business, while the North America Salty Snacks segment, including brands like SkinnyPop and Dot's Homestyle Pretzels, offers additional growth avenues. The successful navigation of pricing strategies appears to have contributed significantly to the quarterly outperformance, though the market reaction indicates some skepticism about the long-term sustainability of this approach.

For investors seeking more detailed earnings information and future estimates, additional data is available through the Hershey earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.