Hasbro Earnings Rise as Outlook Is Upgraded
Hasbro earnings strengthened on Oct. 20, 2026 as Magic and digital gaming drove a 2026 outlook raise and a doubled buyback, supporting investor positioning.
KEY TAKEAWAYS
- Hasbro reported third-quarter revenue up 15% to $1.6 billion and adjusted EPS of $2.90.
- The company raised 2026 revenue and margin guidance and doubled its share-repurchase target.
- Magic: The Gathering revenue topped $616 million, helping adjusted operating margin reach 33.9%.
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Hasbro (HAS) reported on Oct. 20, 2026, that its third-quarter earnings showed double-digit revenue growth and stronger profit, leading the company to raise its 2026 outlook and double its share-repurchase target.
Quarterly Results and Drivers
For the quarter ended Sept. 27, 2026, Hasbro said revenue rose 15% year over year to $1.595 billion. Adjusted operating profit increased 52% to $541.2 million, while adjusted diluted earnings per share (EPS) rose to $2.90 from $1.86. Reported operating profit was $517.3 million, and reported diluted EPS was $2.77, compared with $1.64 a year earlier. Management described the results as a significant step in recovering revenue and cash-flow momentum.
Growth was led by Wizards and Digital Gaming, whose revenue rose 31%, with Magic: The Gathering revenue reaching $616.1 million, up 34% year over year and surpassing $600 million for the first time. Consumer Products revenue increased 4%, and Entertainment grew 9%, reflecting a more favorable business mix. Hasbro reported an adjusted operating margin of 33.9%, up 830 basis points year over year. The quarter also benefited from roughly $55 million in tariff refunds.
Outlook and Capital Allocation
Following the quarter, Hasbro raised its 2026 constant-currency revenue-growth outlook to 7%–9% from 5%–7%, increased adjusted operating-margin guidance to 27%–28%, and boosted adjusted EBITDA guidance to approximately $1.575 billion–$1.625 billion. Management attributed the upgrades to revenue growth, a favorable mix, cost productivity, and momentum in Wizards and Digital Gaming, and expects growth to continue into 2027.
The company also accelerated shareholder returns and balance-sheet management by doubling its 2026 share-repurchase target and returning $206 million to shareholders through dividends and repurchases during the quarter. It paid $99 million in cash dividends and used $79 million to reduce debt through open-market bond repurchases and U.S. Treasury purchases aimed at prefunding 2026 and 2027 maturities. These moves highlight a shift toward prioritizing shareholder returns while tightening near-term financing flexibility.
