The Hershey Company stock research
FY2026 Q1
The Hershey (HSY) Gross Margin — Quarter Ended Mar 29, 2026
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was unchanged sequentially and slightly higher year-over-year, resulting in a gross margin that strengthened from both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 29, 2026 · FY2026 Q1
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was unchanged sequentially and slightly higher year-over-year, resulting in a gross margin that strengthened from both the preceding quarter and the year-ago quarter.
- Gross profit increased while cost of revenue remained nearly flat sequentially, which drove the gross margin higher. The year-over-year improvement was supported by a larger revenue base with a modest increase in cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved as gross profit rose while cost of revenue was unchanged. Versus the same quarter one year earlier, gross margin strengthened significantly, with revenue and gross profit both higher and cost of revenue increasing only slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.4%
Gross profit
$1.2B
Revenue
$3.1B
Cost of revenue
$1.9B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+5.7 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 |
|---|---|---|---|---|
| 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% |
| Mar 29, 2026 | $3.1B | $1.2B | $1.9B | 39.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.4 pts
Year-over-year change
Mar 30, 2025
+5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased while cost of revenue remained nearly flat sequentially, which drove the gross margin higher. The year-over-year improvement was supported by a larger revenue base with a modest increase in cost of revenue.
Compared to the immediately preceding quarter, gross margin improved as gross profit rose while cost of revenue was unchanged. Versus the same quarter one year earlier, gross margin strengthened significantly, with revenue and gross profit both higher and cost of revenue increasing only slightly.
Monitor the trajectory of cost of revenue, which remained stable sequentially but increased year-over-year, as any further rise could pressure gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| The Hershey Company (HSY) | 39.4% |