Hershey's 2025 Net Income Plummets 60%, But 2026 Guidance Remains Optimistic

K-LinePoet · 2026-03-13T02:58:48+00:00

Hershey Company's net profit plummeted 60.2% in 2025, but provided positive guidance for 2026 performance, projecting revenue growth of 4%-5%. Stock price fluctuates with earnings results, and analysts maintain a "buy" rating, anticipating that declining cocoa costs will improve profitability.

K-LinePoet

2026-03-13 02:58:48

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Hershey Company released its full-year 2025 results on February 8, 2026, showing a significant 60.2% year-over-year decline in net profit. However, the company also announced an optimistic outlook for 2026, expecting revenue growth of 4%-5% and earnings per share increase of 79%-89%. This event has become a recent market focus. Coupled with industry factors such as falling cocoa costs, the stock price experienced notable fluctuations after the earnings announcement.

As of the close on February 13, 2026, Hershey’s stock price was $223.50, down 1.22% for the day, but up 22.81% since the beginning of the year. Over the past five trading days (February 9-13), the stock retreated 3.47%, with a trading range of 5.32%, and a trading volume of approximately $2.66 billion, reflecting market uncertainty amid mixed earnings news and future outlooks. Meanwhile, the broader U.S. stock market was volatile, with the Nasdaq down 1.59% over the same period.

Financial analysis shows that Hershey’s revenue in 2025 was $11.69 billion, up 4.38% year-over-year; net profit was $883 million, down 60.2%. The decline was mainly due to high cocoa costs, rising tariffs, and decreased sales volume, which squeezed gross margins. Notably, revenue in the fourth quarter grew 7.0% year-over-year, indicating demand resilience. Market focus has shifted to the 2026 outlook, as cocoa prices have fallen nearly 40% since the start of the year, easing cost pressures and providing room for profit recovery.

Institutional views: Stephens analyst Jim Salera maintained a “Buy” rating on Hershey on February 12, 2026, and raised the target price from $180 to $260, believing that cost control and product innovation could support improved performance in 2026. Recent institutional opinions have been mixed, but some analysts emphasize the impact of falling cocoa costs and expected earnings turning points on valuation.

The above content is compiled from public information and does not constitute investment advice.

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