Hasbro Q2 2026 Earnings Lift Outlook

Hasbro, Inc. (NASDAQ: HAS) raised its FY2026 revenue, margin, and adjusted EBITDA guidance on July 21, 2026, after its Q2 earnings showed record Magic: The Gathering sales and resilient digital-gaming demand that prompted management to lift full-year targets.

Results and Outlook

Hasbro reported consolidated net revenue of $1,139.6 million for the quarter ended June 28, 2026, a 16% increase year over year. Adjusted diluted earnings per share (EPS) reached $1.28, and adjusted operating profit rose 14% to $282.2 million. Management attributed the growth to continued momentum in its gaming businesses.

The company updated its FY2026 guidance, now expecting total revenue to rise 5–7% in constant currency, an adjusted operating margin of 25–26%, and adjusted EBITDA between $1.45 billion and $1.50 billion. These targets were raised from prior ranges of 3–5% revenue growth, 24–25% margin, and $1.40 billion to $1.45 billion in adjusted EBITDA. The outlook reflects sustained strength in Wizards of the Coast and Digital Gaming, improvement in Consumer Products despite an unauthorized network access incident, and mix benefits from higher-margin gaming revenue.

Wizards of the Coast and Magic: The Gathering Surge

The Wizards of the Coast and Digital Gaming segment generated $663.8 million in revenue, up 27% year over year, with operating profit of $270 million. The results included a $56 million impairment related to a refocused digital-games portfolio. This segment was the main driver behind the upward revision in guidance.

Magic: The Gathering revenue reached $545.3 million in Q2, a 32% increase year over year. Year-to-date Magic revenue stood at $1,015 million, up 34% from the prior year. Chief Executive Chris Cocks said, "Magic: The Gathering eclipsed $500 million in quarterly revenue for the first time in its 30-plus year history, led by the record-breaking debut of Marvel Super Heroes."

Consumer Products revenue rose 5% to $463 million but recorded an operating loss due to an estimated $25 million revenue reduction and $11 million in additional costs from the unauthorized network access incident. Entertainment revenue declined 20% to $12.8 million.

Cash Flow and Capital Returns

Hasbro generated $604.4 million in operating cash flow during the first half of 2026. Net revenue for the period was $2,139.8 million, about 15% higher than a year earlier, while adjusted operating profit increased 21% to $569.2 million. Reported net income was $359.3 million, with reported diluted EPS of $2.51 and adjusted diluted EPS of $2.76.

Year to date, the company returned $239 million to shareholders through dividends and share repurchases and reduced debt by $147 million. Hasbro highlighted remaining authorization under its $1 billion share-repurchase program.

By raising its full-year targets, Hasbro signaled management’s confidence that momentum in higher-margin gaming and progress in recovering from the cyber incident can offset consumer spending pressures and support ongoing capital returns.