The Hershey Company stock research
FY2025 Q3
The Hershey (HSY) Gross Margin — Quarter Ended Sep 28, 2025
Revenue increased compared to the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but lower than a year ago. Cost of revenue rose relative to both periods, resulting in a gross margin that improved from the prior quarter but weakened from the same quarter last year.
Gross margin takeaway
Quarter ended Sep 28, 2025 · FY2025 Q3
Revenue increased compared to the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but lower than a year ago. Cost of revenue rose relative to both periods, resulting in a gross margin that improved from the prior quarter but weakened from the same quarter last year.
- The gross margin improved sequentially as revenue growth outpaced the increase in cost of revenue. However, compared to a year ago, the margin declined because cost of revenue rose more sharply than revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher but gross profit was lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.6%
Gross profit
$1.0B
Revenue
$3.2B
Cost of revenue
$2.1B
Quarter-over-quarter change
+2.2 pts
Year-over-year change
-8.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $2.9B | $1.6B | $1.3B | 54.0% |
| Mar 30, 2025 | $2.8B | $944.3M | $1.9B | 33.7% |
| Jun 29, 2025 | $2.6B | $796.3M | $1.8B | 30.5% |
| Sep 28, 2025 | $3.2B | $1.0B | $2.1B | 32.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2025
+2.2 pts
Year-over-year change
Sep 29, 2024
-8.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as revenue growth outpaced the increase in cost of revenue. However, compared to a year ago, the margin declined because cost of revenue rose more sharply than revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher but gross profit was lower, and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its growth has outpaced revenue on a year-over-year basis.