The Hershey Company (HSY) reported third-quarter net sales of $3,275.5 million, up 3.0% from a year earlier, as organic, constant currency sales rose 0.8% and the candy maker raised its 2026 adjusted earnings outlook.

Reported net income was $580.8 million, or $2.88 a share, up 111.8% versus the third quarter of 2025. Adjusted earnings were $2.64 a share, up 103.1%.

Growth slowed from the prior two quarters. Consolidated net sales rose 6.6% in the second quarter and 10.6% in the first. Organic, constant currency sales increased 3.6% in the second quarter and 7.9% in the first.

The company said volume declined about 10 points companywide, reflecting elasticity in North America Confectionery and International, shipment timing and planned portfolio optimization in International, partially offset by growth in North America Salty Snacks. Organic price realization was about 11 points. The LesserEvil acquisition added 2.1 points and foreign exchange 0.1 points.

Reported gross margin was 46.1%, up 1,350 basis points from 32.6% a year earlier. Adjusted gross margin was 42.7%, up 1,090 basis points. The company said the reported increase was driven by net price realization, derivative mark-to-market gains, productivity program savings, tariff refunds and lower net commodity costs, which more than offset lower volume and higher freight and logistics expenses.

Reported operating profit was $817.7 million, up 88.1%, for a 25.0% operating margin, up 1,130 basis points. Adjusted operating profit was $754.0 million, up 78.5%, for a 23.0% adjusted operating margin, up 970 basis points. Selling, marketing and administrative expenses rose 15.4%, with advertising and related consumer marketing up 17.1%.

North America Confectionery net sales were $2,656.5 million, up 1.6%. Organic, constant currency sales rose 1.6% on about 13 points of price and an 11-point volume decline. Segment income was $949.7 million, up 66.2%, for a 35.8% segment margin, up 1,400 basis points. U.S. candy, mint and gum retail takeaway in multi-outlet plus convenience channels rose 0.8% for the 12 weeks ended September 27, 2026, against a prior-year Reese innovation launch.

North America Salty Snacks net sales were $392.7 million, up 22.3%. LesserEvil contributed about 20 points; organic, constant currency sales rose 2.3%. Segment income was $47.4 million, down 17.9%, for a 12.1% segment margin, down 590 basis points. U.S. salty snacks retail takeaway excluding LesserEvil rose 4.0%.

International net sales were $226.4 million, down 7.5%. Organic, constant currency sales fell 9.7% on about 4 points of price and a 14% volume decline. The segment loss was $30.0 million, a $16.4 million improvement, for a (13.3)% margin, down 770 basis points. Unallocated corporate expense was $213.1 million, up 10.3%.

The company updated its 2026 outlook. Net sales growth is now expected at about 5%, from a prior range of 4.5% to 5%. Organic net sales growth is about 3%, from 3% to 3.5%. Reported EPS growth is 84% to 90%, from 82% to 89%. Adjusted EPS growth is 36% to 38.5%, from 32.5% to 35%, including about $0.22 from tariff refunds received in the third quarter of 2026. The LesserEvil contribution to net sales growth was restated at about 200 basis points. The outlook does not include potential future tariff refunds.

The company also expects a reported and adjusted effective tax rate of approximately 25%, interest expense of approximately $200 million, capital expenditures of approximately $450 million, and Advancing Agility & Automation Initiative savings of approximately $100 million.