Hasbro NASDAQ: HAS reported a stronger-than-expected second quarter of 2026 and raised its full-year outlook, citing continued momentum in Magic: The Gathering, growth in consumer products and progress recovering from a cyber incident that affected operations earlier in the year.
Chief Executive Officer Chris Cocks said the company delivered 15% revenue growth in the first half of 2026, with “profits up appreciably,” despite headwinds from oil costs and trade policy. He said growth was broad-based across Magic, Dungeons & Dragons, Hasbro Gaming, Peppa Pig, Star Wars and Marvel.
For the second quarter, Chief Financial Officer and Chief Operating Officer Gina Goetter said Hasbro generated net revenue of $1.14 billion, up 16% year over year. Adjusted operating profit rose 14% to $282 million, while adjusted operating margin was 24.8%, down about 40 basis points from the prior year. Adjusted earnings per diluted share were $1.28, down 2%, which Goetter attributed to a write-off tied to digital gaming projects.
Through the first half of the year, net revenue rose 15% to $2.1 billion. Adjusted operating profit increased 21% to $569 million, and adjusted operating margin expanded 150 basis points, largely driven by Magic’s performance. Adjusted EBITDA was $330 million in the quarter and $670 million for the first half.
Magic Drives Wizards Growth
Hasbro’s Wizards segment continued to be the company’s primary growth engine. Goetter said Wizards revenue grew 27% in the quarter to $664 million, powered by Magic, which was up 32% in the quarter behind the releases of Secrets of Strixhaven and Marvel Super Heroes. Wizards operating profit rose 12% to $270 million, while operating margin declined to 40.7% due to the impairment charge.
Cocks described Magic as a “mega franchise” comparable to major gaming and entertainment properties, citing its more than 30-year history and long-term revenue compounding. He said Magic tabletop and digital revenue has compounded at more than 17% annually since 2009 and grew in 15 of the past 17 years, with the two down years declining by less than 3%.
Cocks said Marvel Super Heroes set records for day-one and month-one revenue and became the fastest Magic set to reach $300 million in revenue, with strong sell-through and reorders. In response to analyst questions, he said the product performed well across channels, particularly with new players and in less traditional outlets such as mass retail, Disney theme parks and GameStop.
Goetter said Hasbro entered 2026 with a strategy of larger initial print and distribution runs for Magic releases, after leaving some demand unmet in 2025. She said reprint runs are still taking longer, but the larger initial production runs have helped meet demand. She said Hasbro is working with print partners to increase capacity for 2027 and 2028.
Consumer Products Returns to Growth
Hasbro’s Consumer Products segment revenue increased 5% to $463 million in the quarter. Goetter said the North America business rose 17% as the company lapped last year’s later shelf-set timing. The segment posted an adjusted operating loss of $7.5 million, reflecting higher input costs, royalties and timing of operating expenses.
Cocks said the toy and game business delivered its third consecutive quarter of growth. He pointed to strength in “Games categories,” which he described as gamified, entertainment-driven, multi-purchase and multi-generational areas of the toy industry that continue to outperform the broader market.
Hasbro highlighted several consumer products initiatives, including Blooms, an “aged-up” Play-Doh product that Cocks said sold out at major retailers in less than 24 hours during its initial launch. The company also announced a multi-year licensing agreement with Nintendo for products inspired by The Legend of Zelda, with the collaboration expected to begin appearing in 2027.
Goetter said the cyber incident had a smaller revenue impact than previously expected. Hasbro lost approximately $25 million of revenue in the quarter from the event, compared with its prior assumption of $40 million to $60 million. She said operations were fully restored ahead of schedule, cash flow remained healthy and receivables were in line with historical averages.
Digital Strategy Narrows After Write-Down
Hasbro recorded a $56 million non-cash write-down in the quarter related to canceled digital games scheduled for release in 2028 and beyond. Cocks said the company reviewed its portfolio and is focusing digital investment on franchises, platforms and partners where it sees the clearest upside.
Cocks outlined four priorities for digital: focus, cost discipline, ownable platforms and partnership. He said Hasbro’s digital investment will center on trading card games and role-playing games, including Magic: The Gathering Arena, D&D Beyond and upcoming owned game offerings Exodus and Warlock, both planned for 2027.
He said 2026 should be the company’s peak year for digital investment as Exodus and Warlock enter their finishing phases. Hasbro expects total digital spending to decline at least 25% annually by 2028. Cocks said the company is shifting more development to lower-cost regions, using Montreal as its base for digital games, and increasingly co-developing and co-publishing with partners.
Goetter said the impairment was “one-time in nature” but would remain included in results, consistent with Hasbro’s treatment of digital game amortization. She added that the write-down does not materially change the economics for 2027 because it related to releases planned for 2028 and beyond.
Guidance Raised as Cash Flow Supports Buybacks
Hasbro raised its full-year outlook and now expects consolidated revenue to grow 5% to 7% year over year on a constant-currency basis, with growth across each segment. The company also raised its adjusted operating margin outlook to 25% to 26% and expects adjusted EBITDA of $1.45 billion to $1.5 billion.
At the segment level, Wizards is expected to grow revenue in the low double-digit range for the year, with operating margins in the low 40% range. Consumer Products revenue is still expected to grow in the low single digits, with adjusted operating margin of 6% to 8%. Entertainment revenue is expected to be slightly positive year over year, with operating margins of about 50%.
In the first half, Hasbro generated $604 million in operating cash flow, contributed $147 million toward debt reduction and returned $239 million to shareholders through dividends and share repurchases. Goetter said the company increased its 2026 share repurchase target from $100 million to a minimum of $200 million, while remaining committed to its dividend.
During the question-and-answer session, Goetter said the raised guidance largely passes through first-half upside while leaving back-half assumptions for Wizards largely unchanged. She said Hasbro expects Magic to be up low single digits in the second half, with a mid-single-digit increase in the third quarter and a low-single-digit decline in the fourth quarter, partly due to a difficult comparison and timing of a 2027 release.
Cocks said Magic’s growth is supported by player growth, reacquisition of lapsed players, expanding distribution and upcoming first-party and Universes Beyond releases. He said Hasbro plans three first-party Magic sets and three Universes Beyond sets in 2027, with the first-party share increasing somewhat compared with 2026.
Goetter said the lower end of Hasbro’s full-year revenue guidance mainly reflects uncertainty around the holiday season in the retail business, while noting that the company feels good about its back-half forecast.
About Hasbro (NASDAQ:HAS)
Hasbro, Inc is a global play and entertainment company, known for designing, manufacturing and marketing a diverse portfolio of toys, games and consumer products. Founded in 1923 as Hassenfeld Brothers and headquartered in Pawtucket, Rhode Island, the company has grown into one of the foremost names in the toy industry, with a presence in retail, digital and entertainment channels worldwide.
The company's brand portfolio features iconic properties such as Monopoly, Play-Doh, Nerf, My Little Pony and Transformers.
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