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HAS Q3 Earnings Beat Estimates on Magic Growth, Outlook Raised
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Key Takeaways
HAS' Q3 adjusted EPS jumps 72.6% to $2.90, beating estimates by 55.9%, while revenues rise 15% to $1.6B.
Magic: The Gathering revenues surge 34% to $616.1M, driving 31% growth in Hasbro's Wizards segment.
HAS raises its 2026 revenue growth outlook to 7-9%, operating margin to 27-28% and doubles its buyback target.
Hasbro, Inc. (HAS - Free Report) reported third-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased 15% year over year, while adjusted earnings surged 72.6% from the previous year.
The quarter benefited from robust performance at Wizards of the Coast, led by Magic: The Gathering, alongside growth in Consumer Products and Entertainment. A favorable business mix, productivity improvements and approximately $55 million in tariff refunds further supported profitability. Magic: The Gathering revenues surpassed $600 million for the first time in a quarter.
HAS' Q3 Earnings & Revenues
In the third quarter of 2026, HAS reported adjusted earnings of $2.90 per share, which increased 72.6% year over year and surpassed the consensus mark of $1.86 by 55.9%.
Net revenues rose 15% year over year to $1.6 billion and topped the consensus estimate of $1.47 billion by 8.6%. Reported earnings were $2.77 per share compared with $1.64 a year ago.
Wizards of the Coast and Digital Gaming revenues increased 31% year over year to $747.2 million. The segment's performance was driven by strength in Magic: The Gathering, which generated $616.1 million in revenues, up 34% year over year. Growth was supported by The Hobbit and Reality Fracture releases.
Tabletop gaming revenues increased 39% to $613.1 million, while digital and licensed gaming revenues rose 3% to $134.1 million. Monopoly Go! contributed $41 million in quarterly revenues.
Operating profit increased 46% year over year to $367.4 million. The operating margin expanded to 49.2% from 44%, reflecting strong revenue growth. The segment's operating profit included a $7 million benefit from tariff refunds.
HAS' Consumer Products Performance Improves
Consumer Products revenues increased 4% year over year to $827.9 million, driven by growth across Marvel, K-Pop Demon Hunters and Transformers. Entertainment releases, including Spider-Man: Brand New Day, and continued momentum in GEM2 categories supported sales.
North American revenues increased 5% to $504.9 million, while Asia Pacific and Latin America registered growth of 9% and 5%, respectively. European revenues remained flat at $181.1 million.
Adjusted operating profit doubled year over year to $177.7 million from $88.9 million, supported by productivity initiatives. The adjusted operating margin expanded to 21.5% from 11.2%. Results included a $48 million benefit from tariff refunds.
Hasbro's Entertainment Segment Gains Momentum
Entertainment revenues increased 9% year over year to $20.2 million, driven by growth in Family Brands. The category generated $18.4 million in revenues, reflecting a 10% increase, while Film and TV revenues declined 5% to $1.8 million.
Adjusted operating profit rose 63% year over year to $18.4 million, supported by a favorable licensing mix. The adjusted operating margin expanded to 91.1% from 60.8%.
HAS' Profitability Reflects Favorable Mix
Adjusted operating profit increased 52% year over year to $541.2 million from $355.6 million, driven by revenue momentum, favorable business mix and cost productivity. Adjusted EBITDA climbed 46.4% to $604.5 million from $412.9 million.
The adjusted operating margin expanded to 33.9% from 25.6%. Reported operating profit increased to $517.3 million from $341.1 million. Selling, distribution and administration expenses rose to $331.5 million from $287.3 million, while advertising expenses declined to $96.2 million from $108.3 million.
Hasbro's Balance Sheet and Capital Allocation
Cash and cash equivalents were $850.7 million at quarter-end, up from $620.9 million a year earlier. Short-term investments totaled $576.2 million, while inventories declined to $358.9 million from $396.7 million. Long-term debt decreased to $2.62 billion from $3.32 billion.
Net cash provided by operating activities totaled $907.3 million in the first nine months of 2026 compared with $490 million a year earlier.
HAS returned $206 million to shareholders through dividends and share repurchases during the quarter and deployed $79 million toward debt reduction and prefunding bond maturities. The company paid $99 million in dividends and declared a quarterly dividend of 70 cents per share.
HAS Raises FY26 Outlook
Management now expects 2026 revenues to increase 7-9% in constant currency, up from its prior projection of 5-7% growth.
The adjusted operating margin is expected to be 27-28%, compared with the previous forecast of 25-26%. Adjusted EBITDA is projected between $1.575 billion and $1.625 billion, up from the earlier range of $1.45 billion to $1.50 billion.
Hasbro also doubled its share repurchase target for 2026. The company intends to continue investing in its core businesses, returning capital to shareholders and reducing debt.
Marriott Vacations stock has jumped 90.9% in the year-to-date period. The Zacks Consensus Estimate for VAC’s 2026 sales and EPS implies growth of 8.3% and 22.5%, respectively, from the year-ago levels.
Lindblad Expeditions currently sports a Zacks Rank #1. The stock has surged 138% in the year-to-date period.
The Zacks Consensus Estimate for Lindblad Expeditions’ 2026 sales and EPS indicates growth of 14% and 175.9%, respectively, from the year-ago period’s levels.
AMC Entertainment presently sports a Zacks Rank #1. The stock has rallied 91% in the year-to-date period.
The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 18.4% and 81.3%, respectively, from the year-ago levels.
View the Zacks #1 Rank List
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HAS Q3 Earnings Beat Estimates on Magic Growth, Outlook Raised
Key Takeaways
Hasbro, Inc. (HAS - Free Report) reported third-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased 15% year over year, while adjusted earnings surged 72.6% from the previous year.
The quarter benefited from robust performance at Wizards of the Coast, led by Magic: The Gathering, alongside growth in Consumer Products and Entertainment. A favorable business mix, productivity improvements and approximately $55 million in tariff refunds further supported profitability. Magic: The Gathering revenues surpassed $600 million for the first time in a quarter.
HAS' Q3 Earnings & Revenues
In the third quarter of 2026, HAS reported adjusted earnings of $2.90 per share, which increased 72.6% year over year and surpassed the consensus mark of $1.86 by 55.9%.
Net revenues rose 15% year over year to $1.6 billion and topped the consensus estimate of $1.47 billion by 8.6%. Reported earnings were $2.77 per share compared with $1.64 a year ago.
Hasbro, Inc. Price, Consensus and EPS Surprise
Hasbro, Inc. price-consensus-eps-surprise-chart | Hasbro, Inc. Quote
Hasbro's Wizards Segment Powers Growth
Wizards of the Coast and Digital Gaming revenues increased 31% year over year to $747.2 million. The segment's performance was driven by strength in Magic: The Gathering, which generated $616.1 million in revenues, up 34% year over year. Growth was supported by The Hobbit and Reality Fracture releases.
Tabletop gaming revenues increased 39% to $613.1 million, while digital and licensed gaming revenues rose 3% to $134.1 million. Monopoly Go! contributed $41 million in quarterly revenues.
Operating profit increased 46% year over year to $367.4 million. The operating margin expanded to 49.2% from 44%, reflecting strong revenue growth. The segment's operating profit included a $7 million benefit from tariff refunds.
HAS' Consumer Products Performance Improves
Consumer Products revenues increased 4% year over year to $827.9 million, driven by growth across Marvel, K-Pop Demon Hunters and Transformers. Entertainment releases, including Spider-Man: Brand New Day, and continued momentum in GEM2 categories supported sales.
North American revenues increased 5% to $504.9 million, while Asia Pacific and Latin America registered growth of 9% and 5%, respectively. European revenues remained flat at $181.1 million.
Adjusted operating profit doubled year over year to $177.7 million from $88.9 million, supported by productivity initiatives. The adjusted operating margin expanded to 21.5% from 11.2%. Results included a $48 million benefit from tariff refunds.
Hasbro's Entertainment Segment Gains Momentum
Entertainment revenues increased 9% year over year to $20.2 million, driven by growth in Family Brands. The category generated $18.4 million in revenues, reflecting a 10% increase, while Film and TV revenues declined 5% to $1.8 million.
Adjusted operating profit rose 63% year over year to $18.4 million, supported by a favorable licensing mix. The adjusted operating margin expanded to 91.1% from 60.8%.
HAS' Profitability Reflects Favorable Mix
Adjusted operating profit increased 52% year over year to $541.2 million from $355.6 million, driven by revenue momentum, favorable business mix and cost productivity. Adjusted EBITDA climbed 46.4% to $604.5 million from $412.9 million.
The adjusted operating margin expanded to 33.9% from 25.6%. Reported operating profit increased to $517.3 million from $341.1 million. Selling, distribution and administration expenses rose to $331.5 million from $287.3 million, while advertising expenses declined to $96.2 million from $108.3 million.
Hasbro's Balance Sheet and Capital Allocation
Cash and cash equivalents were $850.7 million at quarter-end, up from $620.9 million a year earlier. Short-term investments totaled $576.2 million, while inventories declined to $358.9 million from $396.7 million. Long-term debt decreased to $2.62 billion from $3.32 billion.
Net cash provided by operating activities totaled $907.3 million in the first nine months of 2026 compared with $490 million a year earlier.
HAS returned $206 million to shareholders through dividends and share repurchases during the quarter and deployed $79 million toward debt reduction and prefunding bond maturities. The company paid $99 million in dividends and declared a quarterly dividend of 70 cents per share.
HAS Raises FY26 Outlook
Management now expects 2026 revenues to increase 7-9% in constant currency, up from its prior projection of 5-7% growth.
The adjusted operating margin is expected to be 27-28%, compared with the previous forecast of 25-26%. Adjusted EBITDA is projected between $1.575 billion and $1.625 billion, up from the earlier range of $1.45 billion to $1.50 billion.
Hasbro also doubled its share repurchase target for 2026. The company intends to continue investing in its core businesses, returning capital to shareholders and reducing debt.
HAS’ Zacks Rank & Key Picks
Currently, Hasbro has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Marriott Vacations Worldwide Corporation (VAC - Free Report) , Lindblad Expeditions Holdings, Inc. (LIND - Free Report) and AMC Entertainment Holdings, Inc. (AMC - Free Report) .
Marriott Vacations presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Marriott Vacations stock has jumped 90.9% in the year-to-date period. The Zacks Consensus Estimate for VAC’s 2026 sales and EPS implies growth of 8.3% and 22.5%, respectively, from the year-ago levels.
Lindblad Expeditions currently sports a Zacks Rank #1. The stock has surged 138% in the year-to-date period.
The Zacks Consensus Estimate for Lindblad Expeditions’ 2026 sales and EPS indicates growth of 14% and 175.9%, respectively, from the year-ago period’s levels.
AMC Entertainment presently sports a Zacks Rank #1. The stock has rallied 91% in the year-to-date period.
The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 18.4% and 81.3%, respectively, from the year-ago levels.