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    Does Raised 2026 Outlook Change The Bull Case For Hershey (HSY)?

    Simply Wall St·11/01/2026 00:40:45
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    • Hershey raised its full year 2026 outlook after reporting third quarter results that showed higher sales of US$3,275.51 million and sharply higher earnings, supported by pricing and tariff refunds, while still flagging consumer and cost pressures.
    • The surge in profitability came even as North American confectionery volume fell and salty snacks faced supply constraints. This underscored how much Hershey is leaning on pricing, efficiency and a heavier product pipeline rather than pure volume growth.
    • We will now look at how Hershey's higher 2026 earnings guidance, driven by stronger profit power, could reshape its investment narrative.
    Seize this moment around Hershey's earnings reset to review a curated 29 high quality undervalued stocks that currently combine profit strength with more conservative expectations.

    Hershey Investment Narrative Recap

    To own Hershey, you need to believe its pricing power, brand strength and snacking expansion can offset softer volumes and consumer pushback on higher candy prices. The raised 2026 earnings guidance, helped by tariff refunds and strong Q3 profit, supports that profitability story but does not fully resolve concerns about volume declines and market share pressure.

    The key near term catalyst is whether 2027 product launches and pack sizes stabilize demand as shoppers trade down and shift channels. The biggest risk remains reliance on pricing while North America confectionery volumes fall and salty snacks are constrained by capacity and logistics, which could pressure growth once pricing benefits fade.

    The updated 2026 outlook is the most relevant fresh data point. Management now targets about 5% net sales growth and reported EPS of US$8.00 to US$8.26, with reported EPS growth of 84% to 90%, including tariff refunds already received. That reset frames Hershey as a profit power story built on pricing, efficiency and mix.

    For you as an investor, the question is how repeatable that earnings level is once one off tariff benefits roll out of the base and cocoa, freight and other inputs remain a swing factor. Execution on salty snacks capacity, the larger 2027 pipeline and demand shaping in lower cost lines now sits at the center of Hershey’s catalyst and risk balance.

    Hershey's narrative projects US$13.1b revenue and US$2.1b earnings by 2029. That assumes 2.5% yearly revenue growth and about a US$0.6b earnings increase from US$1.5b today.

    Uncover how Hershey's fair value indicates a 17% potential upside to its current price before other investors close that gap.

    NYSE:HSY 1-Year Stock Price Chart
    NYSE:HSY 1-Year Stock Price Chart

    Exploring Other Perspectives

    One alternate view on Hershey focuses heavily on cocoa cost risk. The most cautious analysts were forecasting revenue of about US$13.0b and earnings near US$1.9b by 2029 before this guidance update, and they see less room for margin relief. Their more muted earnings path shows how sharply expectations can differ, so it can be useful to compare several narratives before considering how this latest outlook might influence your own.

    Explore 6 other Hershey fair value estimates, including one that suggests as much as 52% downside from the current price!

    The Verdict Is Yours

    Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

    Looking for more investment ideas beyond Hershey?

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