12:19 PM EDT, 04/28/2026 (MT Newswires) -- Hershey (HSY) saw "solid"consumption in Q1 but concerns remain over its strategy in reversing ongoing volume declines and market share losses, RBC Capital Markets said in a Tuesday note.

Scanner data suggested a 9.2% growth in Q1 consumption for Hershey, pointing to a revenue beat, according to RBC. The firm noted that Hershey expects the strongest quarterly revenue in Q1, while high inventory costs are anticipated to weigh on margins.

Guidance for 2026 earnings per share is likely to be maintained, while Hershey's long-term guidance indicate EPS visibility through 2027, RBC added. It remains to be seen if Hershey's "strategy can revert ongoing volume declines and market share losses,'it added.

The company's stock has been "resilient"so far this year, helped by easing cocoa costs and its strong guidance.

Hershey is set to release its Q1 results on Thursday.

RBC has a sector perform rating and $212 price target on Hershey.

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