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Hasbro Stock Up 24% in a Year, Earnings Estimates Rise: Buy or Hold?
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Key Takeaways
HAS' Q1 revenues were up 13% to $1B, with adjusted EPS rising 41% and operating profit up 29%.
HAS saw Wizards of the Coast revenue rise of 26%, led by record MAGIC: The Gathering releases.
HAS maintained 2026 outlook and targets $150M in annual cost cuts as margins continue to expand.
Hasbro, Inc. (HAS - Free Report) has been a notable outperformer in the toy and gaming space over the past year. The stock has surged 23.5%, significantly outpacing the industry’s modest 0.8% growth. While the broader S&P 500 has advanced 25.1% during the same period, Hasbro’s strong performance reflects growing investor confidence in its earnings trajectory, margin expansion efforts and long-term growth strategy.
Analysts have become increasingly optimistic about the company’s prospects. Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has increased to $6.01 per share from $5.66, while the 2027 estimate stands at $6.44. Earnings are projected to grow 8.5% in 2026 and another 7.2% in 2027. Revenues are expected to rise 5.9% and 5.1% in the respective years.
Image Source: Zacks Investment Research
The stock's rally has been driven by the continued strength of Wizards of the Coast, improving profitability, disciplined cost management and confidence in Hasbro’s ability to capitalize on its powerful portfolio of brands. Notably, the company has also outperformed key industry peers such as Mattel (MAT - Free Report) and JAKKS Pacific (JAKK - Free Report) .
Price Performance
Image Source: Zacks Investment Research
Wizards of the Coast Remains a Major Growth Engine
A key driver of Hasbro’s improving outlook is the exceptional performance of Wizards of the Coast, home to MAGIC: The Gathering and Dungeons & Dragons.
Hasbro kicked off 2026 on a strong note, reporting first-quarter revenue growth of 13% year over year to $1 billion. Adjusted earnings per share jumped 41% to $1.47, while adjusted operating profit increased 29%. Management credited much of this success to Wizards of the Coast, which delivered a 26% increase in revenues and a 29% rise in operating profit.
The momentum within MAGIC: The Gathering has been particularly impressive. Management highlighted that the "Lorwyn Eclipsed" release became the best-selling MAGIC Premier set in the franchise’s history. The subsequent "Secrets of Strixhaven" launch surpassed even that record, underscoring sustained consumer demand for the brand.
Beyond core releases, collaborations with popular franchises such as Teenage Mutant Ninja Turtles have attracted new players and expanded the game's audience. Management noted that MAGIC’s ecosystem continues to benefit from record engagement levels, growing organized play participation and strong backlist sales, providing confidence that the franchise's success is far from temporary.
Consumer Products Business Is Gaining Momentum
While Wizards continues to generate headlines, Hasbro’s Consumer Products segment is showing encouraging signs of recovery and growth. Management reported positive point-of-sale trends during the first quarter and through April, supported by lean retailer inventories and improving market-share performance. The company continues to focus on its GEM2 strategy, targeting categories that are gamified, entertainment-driven, multi-purchase and multi-generational. These categories have consistently outperformed the broader toy market and helped Hasbro gain share in several key segments.
The company also has a favorable lineup of entertainment-driven opportunities ahead. Upcoming releases tied to Star Wars, Toy Story 5, Spider-Man and Avengers franchises are expected to support demand across Hasbro’s product portfolio. Additionally, innovations across brands such as Monopoly and Play-Doh should contribute to growth in the second half of the year.
Margin Expansion Strengthens the Investment Case
Hasbro’s earnings growth is not solely dependent on revenue expansion. The company is also benefiting from meaningful improvements in profitability.
Adjusted operating margin expanded 360 basis points year over year to 28.7% in the first quarter, supported by a favorable business mix and ongoing cost-saving initiatives. During the quarter, Hasbro generated $37 million in gross savings and remains on track to deliver $150 million in annual cost reductions.
The company also produced $338 million in operating cash flow, continued paying dividends and initiated share repurchases under its recently authorized buyback program. These actions demonstrate management’s commitment to enhancing shareholder value while maintaining financial flexibility.
Importantly, management maintained its full-year outlook despite macroeconomic uncertainty. Hasbro continues to expect revenue growth of 3-5%, adjusted operating margins of 24-25% and adjusted EBITDA of $1.4-$1.45 billion in 2026.
Valuation & Rising Estimates
The company is trading at a discount to the industry. It has a forward 12-month price-to-earnings ratio of 13.59X, well above the industry average of 9.82X. On the other hand, Mattel and JAKKS Pacific are trading at 10.41X and 12.45X.
P/E (F12M)
Image Source: Zacks Investment Research
Buy or Hold the Stock?
Hasbro appears well-positioned to build on its recent momentum. The company is benefiting from the exceptional strength of Wizards of the Coast, improving trends in Consumer Products, expanding margins and disciplined capital allocation.
The steady rise in earnings estimates suggests analysts are becoming increasingly confident in Hasbro’s growth prospects. At the same time, management continues to execute on its Playing to Win strategy, leveraging powerful intellectual property, expanding licensing opportunities and investing in high-return growth areas such as digital gaming.
Although the stock has already gained nearly 24% over the past year, the fundamentals continue to improve. With projected earnings growth, ongoing margin expansion and a Zacks Rank #1 (Strong Buy), Hasbro remains attractively positioned for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Hasbro Stock Up 24% in a Year, Earnings Estimates Rise: Buy or Hold?
Key Takeaways
Hasbro, Inc. (HAS - Free Report) has been a notable outperformer in the toy and gaming space over the past year. The stock has surged 23.5%, significantly outpacing the industry’s modest 0.8% growth. While the broader S&P 500 has advanced 25.1% during the same period, Hasbro’s strong performance reflects growing investor confidence in its earnings trajectory, margin expansion efforts and long-term growth strategy.
Analysts have become increasingly optimistic about the company’s prospects. Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has increased to $6.01 per share from $5.66, while the 2027 estimate stands at $6.44. Earnings are projected to grow 8.5% in 2026 and another 7.2% in 2027. Revenues are expected to rise 5.9% and 5.1% in the respective years.
Image Source: Zacks Investment Research
The stock's rally has been driven by the continued strength of Wizards of the Coast, improving profitability, disciplined cost management and confidence in Hasbro’s ability to capitalize on its powerful portfolio of brands. Notably, the company has also outperformed key industry peers such as Mattel (MAT - Free Report) and JAKKS Pacific (JAKK - Free Report) .
Price Performance
Image Source: Zacks Investment Research
Wizards of the Coast Remains a Major Growth Engine
A key driver of Hasbro’s improving outlook is the exceptional performance of Wizards of the Coast, home to MAGIC: The Gathering and Dungeons & Dragons.
Hasbro kicked off 2026 on a strong note, reporting first-quarter revenue growth of 13% year over year to $1 billion. Adjusted earnings per share jumped 41% to $1.47, while adjusted operating profit increased 29%. Management credited much of this success to Wizards of the Coast, which delivered a 26% increase in revenues and a 29% rise in operating profit.
The momentum within MAGIC: The Gathering has been particularly impressive. Management highlighted that the "Lorwyn Eclipsed" release became the best-selling MAGIC Premier set in the franchise’s history. The subsequent "Secrets of Strixhaven" launch surpassed even that record, underscoring sustained consumer demand for the brand.
Beyond core releases, collaborations with popular franchises such as Teenage Mutant Ninja Turtles have attracted new players and expanded the game's audience. Management noted that MAGIC’s ecosystem continues to benefit from record engagement levels, growing organized play participation and strong backlist sales, providing confidence that the franchise's success is far from temporary.
Consumer Products Business Is Gaining Momentum
While Wizards continues to generate headlines, Hasbro’s Consumer Products segment is showing encouraging signs of recovery and growth.
Management reported positive point-of-sale trends during the first quarter and through April, supported by lean retailer inventories and improving market-share performance. The company continues to focus on its GEM2 strategy, targeting categories that are gamified, entertainment-driven, multi-purchase and multi-generational. These categories have consistently outperformed the broader toy market and helped Hasbro gain share in several key segments.
The company also has a favorable lineup of entertainment-driven opportunities ahead. Upcoming releases tied to Star Wars, Toy Story 5, Spider-Man and Avengers franchises are expected to support demand across Hasbro’s product portfolio. Additionally, innovations across brands such as Monopoly and Play-Doh should contribute to growth in the second half of the year.
Margin Expansion Strengthens the Investment Case
Hasbro’s earnings growth is not solely dependent on revenue expansion. The company is also benefiting from meaningful improvements in profitability.
Adjusted operating margin expanded 360 basis points year over year to 28.7% in the first quarter, supported by a favorable business mix and ongoing cost-saving initiatives. During the quarter, Hasbro generated $37 million in gross savings and remains on track to deliver $150 million in annual cost reductions.
The company also produced $338 million in operating cash flow, continued paying dividends and initiated share repurchases under its recently authorized buyback program. These actions demonstrate management’s commitment to enhancing shareholder value while maintaining financial flexibility.
Importantly, management maintained its full-year outlook despite macroeconomic uncertainty. Hasbro continues to expect revenue growth of 3-5%, adjusted operating margins of 24-25% and adjusted EBITDA of $1.4-$1.45 billion in 2026.
Valuation & Rising Estimates
The company is trading at a discount to the industry. It has a forward 12-month price-to-earnings ratio of 13.59X, well above the industry average of 9.82X. On the other hand, Mattel and JAKKS Pacific are trading at 10.41X and 12.45X.
P/E (F12M)
Image Source: Zacks Investment Research
Buy or Hold the Stock?
Hasbro appears well-positioned to build on its recent momentum. The company is benefiting from the exceptional strength of Wizards of the Coast, improving trends in Consumer Products, expanding margins and disciplined capital allocation.
The steady rise in earnings estimates suggests analysts are becoming increasingly confident in Hasbro’s growth prospects. At the same time, management continues to execute on its Playing to Win strategy, leveraging powerful intellectual property, expanding licensing opportunities and investing in high-return growth areas such as digital gaming.
Although the stock has already gained nearly 24% over the past year, the fundamentals continue to improve. With projected earnings growth, ongoing margin expansion and a Zacks Rank #1 (Strong Buy), Hasbro remains attractively positioned for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.