Hasbro raises 2026 outlook as Magic: The Gathering tops $600 million

Hasbro, Inc. reported third quarter 2026 revenue growth of 15% and raised its full-year financial outlook, driven primarily by record performance from its trading card game Magic: The Gathering. The company, which trades on NASDAQ under the ticker HAS, stated that Magic: The Gathering surpassed $600 million in quarterly revenue for the first time.

Chief Executive Officer Chris Cocks attributed the results to the company's asset-light licensing model and a growing Magic lineup. He noted that Hasbro delivered a fourth consecutive quarter of double-digit revenue growth. Chief Financial Officer and Chief Operating Officer Gina Goetter added that the company is balancing investment in the business with returning cash to shareholders, citing the decision to double the share repurchase target for the year.

Hasbro's third quarter operating profit reached $517 million, while adjusted operating profit rose 52% year over year to $541 million. These figures include approximately $55 million in tariff refunds. Reported net earnings were $2.77 per diluted share, and adjusted net earnings were $2.90 per diluted share. The company returned $206 million to shareholders through dividends and share repurchases during the quarter.

The Wizards and Digital Gaming segment led overall growth with a 31% revenue increase. Within this segment, Magic: The Gathering revenue grew 34%, fueled by the release of The Hobbit and Reality Fracture sets. Monopoly Go! contributed $41 million in third quarter revenue. Segment operating profit increased 46% to $367 million, reflecting a 49% operating margin.

The Consumer Products segment saw revenues rise 4%, driven by Marvel, KPop Demon Hunters, and Transformers. Sales benefited from entertainment releases including Spider-Man: Brand New Day. Segment operating profit stood at $174 million, with adjusted operating profit doubling year over year to $178 million due to productivity initiatives. This result includes a $48 million benefit from tariff refunds.

The Entertainment segment reported a 9% revenue increase driven by Family Brands. Operating profit was $17 million, while adjusted operating profit rose 63% to $18 million owing to favorable licensing mix.

For the full year 2026, Hasbro now expects total revenue to increase 7-9% in constant currency, up from a previous range of 5-7%. The company also raised its expected adjusted operating margin to 27-28%, from a prior range of 25-26%. Adjusted EBITDA is now projected between $1.575 billion and $1.625 billion, compared to the previous estimate of $1.45 billion to $1.50 billion.

Year-to-date revenue for Hasbro increased 15%, partially offset by a 13% decline in the Entertainment segment. Year-to-date operating profit was $1,040 million, including a $56 million impairment related to digital games that was nearly offset by tariff refunds. The company deployed $226 million toward debt reduction during the first nine months through open-market bond repurchases and U.S. Treasury purchases.

The Board of Directors declared a quarterly cash dividend of $0.70 per common share, payable on December 2, 2026.