A month has gone by since the last earnings report for Hasbro (HAS Quick QuoteHAS - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Hasbro due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Hasbro, Inc. before we dive into how investors and analysts have reacted as of late.

Hasbro Q1 Earnings & Revenues Beat Estimates, Increase Y/Y

Hasbro 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.

Hasbro’s 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%.

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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -8.78% due to these changes.

VGM Scores

Currently, Hasbro has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Hasbro has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.