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Hasbro Beats Q1 Earnings Estimates on Wizards Mix and Scale
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Key Takeaways
Hasbro's Q1 FY26 EPS hit $1.47 on $1B revenues, topping consensus estimates.
Wizards of the Coast and Digital Gaming revenues jumped 26% to $582M, with margin up to 51.2%.
Consumer Products margin fell to -10.2% on tariff costs; Entertainment revenues slid 24% on deal timing.
Hasbro, Inc. (HAS - Free Report) reported strong first-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased year over year.
Hasbro delivered a strong first-quarter 2026 performance, supported by robust growth in its Wizards and Digital Gaming business, particularly from MAGIC: THE GATHERING. Strong demand for new releases, continued momentum in backlist titles and contribution from Monopoly Go! helped drive revenue and profit growth.
However, performance was partially affected by weakness in the Entertainment segment due to unfavorable deal timing and softer Film & TV revenues. The Consumer Products segment also faced pressure from higher tariff-related costs, challenging licensing comparisons and seasonal losses.
HAS’ Q1 Earnings & Revenues
In first-quarter fiscal 2026, HAS reported adjusted earnings per share (EPS) of $1.47, rising 41.3% year over year and beating the Zacks Consensus Estimate of $1.12 by 31.3%.
The quarter again showed a clear separation in performance across Hasbro’s operating segments. Wizards of the Coast and Digital Gaming delivered revenues of $582 million, up 26% year over year, benefiting from strength in tabletop gaming and continued expansion in the broader ecosystem. Our model predicted the segment’s revenues to be $526.8 million. Adjusted operating margin expanded 140 basis points to 51.2% from 49.8% in the year-ago quarter.
Consumer Products revenues were essentially flat at $397.9 million. Our model predicted the segment’s revenues to be $358.6 million. The adjusted operating margin was -10.2%, a 240-basis-point deterioration from -7.8% in the prior-year quarter.
Entertainment revenues decreased 24% to $20.3 million, reflecting the timing and nature of deals. Our model predicted the segment’s revenues to be $27 million. Adjusted operating margin was 100%, up 3,480 basis points from 65.2% a year ago.
Hasbro’s Profit Gains Reflect Operating Leverage
Profitability improved meaningfully on both a reported and adjusted basis. Adjusted operating profit increased 29% to $287 million, pointing to stronger underlying execution and mix, and adjusted operating margin rose to 28.7% from 25.1%.
The company reported adjusted EBITDA of $339.4 million compared with $274.3 million a year ago. Our estimate for the metric was $288.6 million.
Selling, distribution and administration expenses declined to $259.1 million from $269.6 million in the prior-year quarter, contributing to stronger operating leverage as revenues grew.
HAS’ Balance Sheet and Capital Allocation Remain Active
Liquidity improved year over year, with cash and cash equivalents of $857.1 million at quarter-end versus $621.1 million a year earlier. The company also carried $498.2 million in short-term investments, lifting overall financial flexibility entering the remainder of 2026. Leverage moved lower versus the prior year. As of March 29, 2026, long-term debt was $3.1 billion, down from $3.3 billion as of March 30, 2025.
Capital returns continued, alongside balance-sheet actions. Hasbro paid $99 million in dividends during the quarter to its shareholders. The company also declared a quarterly cash dividend of 70 cents per share payable June 11, 2026. Separately, Hasbro disclosed previously identified unauthorized network access in late March 2026 and said it began incurring related costs in the second quarter while pursuing potential recoveries through cybersecurity insurance.
Hasbro’s 2026 Outlook Holds Steady After Strong Q1
For the full year, management reiterated its outlook for total Hasbro revenues to increase 3-5% in constant currency, with adjusted operating margin expected at 24-25% and adjusted EBITDA projected between $1.40 billion and $1.45 billion.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported first-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. In the quarter under review, Royal Caribbean reported adjusted EPS of $3.60, beating the Zacks Consensus Estimate of $3.20. In the year-ago quarter, RCL posted an adjusted EPS of $2.71. Revenues in the quarter totaled $4.45 billion, beating the consensus mark of $4.44 billion. The metric increased 11.3% year over year.
Hyatt Hotels Corporation (H - Free Report) reported first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company reported first-quarter 2026 adjusted EPS of 63 cents, up 37% from 46 cents a year ago. The metric beat the Zacks Consensus Estimate of 57 cents by 10.5%. Total revenues rose 1.7% year over year to $1,748 million and topped the consensus mark of $1,712 million by 2.1%. Hyatt’s operating backdrop stayed constructive, with comparable system-wide hotels RevPAR increasing 5.4% and comparable system-wide all-inclusive resorts Net Package RevPAR rising 7.4% from the year-ago quarter.
Mattel, Inc. (MAT - Free Report) reported first-quarter 2026 results, with adjusted earnings and net sales beating the Zacks Consensus Estimate. Revenues improved, while the bottom line fell from the prior-year quarter levels. Mattel posted an adjusted loss of 20 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents by 16.67%. The bottom line declined from an adjusted loss of 2 cents reported in the prior-year quarter. Net sales of $862 million topped the consensus mark of $801 million by 7.59% and increased 4% year over year.
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Hasbro Beats Q1 Earnings Estimates on Wizards Mix and Scale
Key Takeaways
Hasbro, Inc. (HAS - Free Report) reported strong first-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased year over year.
Hasbro delivered a strong first-quarter 2026 performance, supported by robust growth in its Wizards and Digital Gaming business, particularly from MAGIC: THE GATHERING. Strong demand for new releases, continued momentum in backlist titles and contribution from Monopoly Go! helped drive revenue and profit growth.
However, performance was partially affected by weakness in the Entertainment segment due to unfavorable deal timing and softer Film & TV revenues. The Consumer Products segment also faced pressure from higher tariff-related costs, challenging licensing comparisons and seasonal losses.
HAS’ Q1 Earnings & Revenues
In first-quarter fiscal 2026, HAS reported adjusted earnings per share (EPS) of $1.47, rising 41.3% year over year and beating the Zacks Consensus Estimate of $1.12 by 31.3%.
Hasbro, Inc. Price, Consensus and EPS Surprise
Hasbro, Inc. price-consensus-eps-surprise-chart | Hasbro, Inc. Quote
Net revenues of $1 billion increased 12.7% from the year-ago period and topped the consensus mark of $957 million by 4.5%.
HAS’ Segment Results Highlight Portfolio Divergence
The quarter again showed a clear separation in performance across Hasbro’s operating segments. Wizards of the Coast and Digital Gaming delivered revenues of $582 million, up 26% year over year, benefiting from strength in tabletop gaming and continued expansion in the broader ecosystem. Our model predicted the segment’s revenues to be $526.8 million. Adjusted operating margin expanded 140 basis points to 51.2% from 49.8% in the year-ago quarter.
Consumer Products revenues were essentially flat at $397.9 million. Our model predicted the segment’s revenues to be $358.6 million. The adjusted operating margin was -10.2%, a 240-basis-point deterioration from -7.8% in the prior-year quarter.
Entertainment revenues decreased 24% to $20.3 million, reflecting the timing and nature of deals. Our model predicted the segment’s revenues to be $27 million. Adjusted operating margin was 100%, up 3,480 basis points from 65.2% a year ago.
Hasbro’s Profit Gains Reflect Operating Leverage
Profitability improved meaningfully on both a reported and adjusted basis. Adjusted operating profit increased 29% to $287 million, pointing to stronger underlying execution and mix, and adjusted operating margin rose to 28.7% from 25.1%.
The company reported adjusted EBITDA of $339.4 million compared with $274.3 million a year ago. Our estimate for the metric was $288.6 million.
Selling, distribution and administration expenses declined to $259.1 million from $269.6 million in the prior-year quarter, contributing to stronger operating leverage as revenues grew.
HAS’ Balance Sheet and Capital Allocation Remain Active
Liquidity improved year over year, with cash and cash equivalents of $857.1 million at quarter-end versus $621.1 million a year earlier. The company also carried $498.2 million in short-term investments, lifting overall financial flexibility entering the remainder of 2026. Leverage moved lower versus the prior year. As of March 29, 2026, long-term debt was $3.1 billion, down from $3.3 billion as of March 30, 2025.
Capital returns continued, alongside balance-sheet actions. Hasbro paid $99 million in dividends during the quarter to its shareholders. The company also declared a quarterly cash dividend of 70 cents per share payable June 11, 2026. Separately, Hasbro disclosed previously identified unauthorized network access in late March 2026 and said it began incurring related costs in the second quarter while pursuing potential recoveries through cybersecurity insurance.
Hasbro’s 2026 Outlook Holds Steady After Strong Q1
For the full year, management reiterated its outlook for total Hasbro revenues to increase 3-5% in constant currency, with adjusted operating margin expected at 24-25% and adjusted EBITDA projected between $1.40 billion and $1.45 billion.
HAS’ Zacks Rank
Hasbro currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported first-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. In the quarter under review, Royal Caribbean reported adjusted EPS of $3.60, beating the Zacks Consensus Estimate of $3.20. In the year-ago quarter, RCL posted an adjusted EPS of $2.71. Revenues in the quarter totaled $4.45 billion, beating the consensus mark of $4.44 billion. The metric increased 11.3% year over year.
Hyatt Hotels Corporation (H - Free Report) reported first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company reported first-quarter 2026 adjusted EPS of 63 cents, up 37% from 46 cents a year ago. The metric beat the Zacks Consensus Estimate of 57 cents by 10.5%. Total revenues rose 1.7% year over year to $1,748 million and topped the consensus mark of $1,712 million by 2.1%. Hyatt’s operating backdrop stayed constructive, with comparable system-wide hotels RevPAR increasing 5.4% and comparable system-wide all-inclusive resorts Net Package RevPAR rising 7.4% from the year-ago quarter.
Mattel, Inc. (MAT - Free Report) reported first-quarter 2026 results, with adjusted earnings and net sales beating the Zacks Consensus Estimate. Revenues improved, while the bottom line fell from the prior-year quarter levels. Mattel posted an adjusted loss of 20 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents by 16.67%. The bottom line declined from an adjusted loss of 2 cents reported in the prior-year quarter. Net sales of $862 million topped the consensus mark of $801 million by 7.59% and increased 4% year over year.