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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.

Hasbro, Inc. Price, Consensus and EPS Surprise

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.

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