The Hershey Company stock research
FY2025 Q4
The Hershey (HSY) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased slightly from the prior quarter but increased compared to the same quarter last year. Gross profit and gross margin improved sequentially, yet both were lower than the year-ago period, as cost of revenue rose more than revenue on an annual basis.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased slightly from the prior quarter but increased compared to the same quarter last year. Gross profit and gross margin improved sequentially, yet both were lower than the year-ago period, as cost of revenue rose more than revenue on an annual basis.
- The sequential improvement in gross margin was the strongest observable driver, with gross profit rising while revenue declined modestly, indicating a favorable shift in the relationship between revenue and cost of revenue.
- Compared to the prior quarter, gross margin improved as gross profit increased and cost of revenue decreased. Versus the same quarter last year, gross margin weakened substantially due to a larger increase in cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.0%
Gross profit
$1.1B
Revenue
$3.1B
Cost of revenue
$1.9B
Quarter-over-quarter change
+4.4 pts
Year-over-year change
-16.9 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $3.1B | $1.1B | $1.9B | 37.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2025
+4.4 pts
Year-over-year change
Dec 31, 2024
-16.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was the strongest observable driver, with gross profit rising while revenue declined modestly, indicating a favorable shift in the relationship between revenue and cost of revenue.
Compared to the prior quarter, gross margin improved as gross profit increased and cost of revenue decreased. Versus the same quarter last year, gross margin weakened substantially due to a larger increase in cost of revenue relative to revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its year-over-year increase outpaced revenue growth and compressed gross margin.