Hasbro raises 2026 outlook as Magic: The Gathering tops $600 million in a quarter for the first time

Magic: The Gathering crossed $600 million in quarterly revenue for the first time, and Hasbro raised its forecast for the year.

The toy and games company said Tuesday third-quarter net earnings attributable to Hasbro rose to $394.5 million, or $2.77 a diluted share, from $233.2 million, or $1.64, a year earlier. Adjusted earnings were $2.90 a share, up from $1.68, according to its earnings release filed with an 8-K.

Net revenue rose 15% to $1,595.3 million from $1,387.5 million. Results included about $55 million of tariff refunds, the company said.

"We delivered a fourth consecutive quarter of double-digit revenue growth," CEO Chris Cocks said in the release.

Outlook goes up

Hasbro now expects 2026 revenue to grow 7% to 9% in constant currency, up from its prior forecast of 5% to 7%. It raised its adjusted operating margin outlook to 27% to 28% from 25% to 26%, and lifted its adjusted EBITDA forecast to $1.575 billion to $1.625 billion from $1.45 billion to $1.50 billion.

The company is also "doubling our share repurchase target for the year," Chief Financial Officer and Chief Operating Officer Gina Goetter said. The release did not give a dollar figure for the new target.

Magic drives the gaming unit

Revenue in the Wizards of the Coast and Digital Gaming segment jumped 31% to $747.2 million. Magic: The Gathering revenue climbed 34% to $616.1 million from $459.4 million, growth Hasbro credited to The Hobbit and Reality Fracture. Monopoly Go! contributed $41 million.

The segment's operating profit rose 46% to $367.4 million, a 49% operating margin, including a $7 million benefit from tariff refunds.

Consumer Products revenue rose 4% to $827.9 million, led by Marvel, KPop Demon Hunters and Transformers. Segment operating profit more than doubled to $173.8 million from $80.1 million, a figure that includes a $48 million benefit from tariff refunds.

Total company operating profit was $517.3 million, and adjusted operating profit rose 52% to $541.2 million.

Cash to shareholders

Hasbro returned $206 million to shareholders in the quarter through its dividend and share repurchases, including $99 million in cash dividends. It also put $79 million toward debt reduction through open-market bond repurchases and U.S. Treasury purchases to prefund its 2026 and 2027 bond maturities.

The board declared a quarterly dividend of $0.70 a share, payable Dec. 2 to shareholders of record on Nov. 18.

By the numbers

• Diluted EPS: $2.77, vs. $1.64
• Adjusted EPS: $2.90, vs. $1.68
• Net revenue: $1,595.3 million, up 15%
• Magic: The Gathering revenue: $616.1 million, up 34%
• Tariff refunds in results: about $55 million
• 2026 adjusted EBITDA outlook: $1.575 billion to $1.625 billion

Sources

1. Hasbro, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release for the third quarter of 2026, filed Oct. 20, 2026, accession 0000046080-26-000058

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