Hasbro third-quarter earnings rise to $2.77 per diluted share and raise 2026 outlook

Hasbro, Inc. (HAS) reported third-quarter revenue of $1,595.3 million, up 15% from a year earlier, and raised its 2026 outlook, the company said in a regulatory filing on Tuesday.

The games, IP and toy company said the results cover the quarter ended Sept. 27. Magic: The Gathering topped $600 million in quarterly revenue for the first time, according to the press release attached to the filing.

Here's how the company did:

• Net revenues: $1,595.3 million vs. $1,387.5 million a year earlier
• Net earnings per diluted share: $2.77 vs. $1.64 a year earlier
• Adjusted net earnings per diluted share: $2.90 vs. $1.68 a year earlier
• Operating profit: $517.3 million vs. $341.1 million a year earlier
• Adjusted operating profit: $541.2 million vs. $355.6 million a year earlier
• Adjusted EBITDA: $604.5 million vs. $412.9 million a year earlier

Adjusted operating profit rose 52% from a year earlier. The company credited topline momentum, favorable mix and cost productivity.

Results include approximately $55 million of tariff refunds. Without that benefit, the company's quarter would have been built on its own operations alone, according to its own description of the drivers.

Net earnings attributable to Hasbro were $394.5 million, against $233.2 million a year earlier. Operating margin reached 32.4%, compared with 24.6%.

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization with certain items excluded, was $604.5 million for the quarter.

Here's how the company's segments did during the quarter:

• Wizards of the Coast and Digital Gaming: revenue $747.2 million, up 31% from $572.0 million; operating profit $367.4 million vs. $251.5 million
• Consumer Products: revenue $827.9 million, up 4% from $796.9 million; adjusted operating profit $177.7 million vs. $88.9 million
• Entertainment: revenue $20.2 million, up 9% from $18.6 million; adjusted operating profit $18.4 million vs. $11.3 million

Magic: The Gathering revenue rose 34% to $616.1 million from $459.4 million. Tabletop gaming revenue rose 39% to $613.1 million, while digital and licensed gaming grew 3% to $134.1 million.

Monopoly Go! contributed $41 million of revenue in the quarter. The Wizards and Digital Gaming operating profit included a $7 million benefit from tariff refunds.

Consumer Products revenue rose 4%, led by Marvel, KPop Demon Hunters and Transformers. Sales also benefited from entertainment releases, including Spider-Man: Brand New Day.

Consumer Products adjusted operating profit more than doubled, up 100%, driven by productivity initiatives. The segment's operating profit and adjusted operating profit both include a $48 million benefit from tariff refunds.

Entertainment revenue rose 9%, driven by growth in Family Brands. Adjusted operating profit rose 63% on favorable licensing mix.

CEO Chris Cocks said the quarter showed the company's strengths. "Inspiring a lifetime of play is our superpower, and this quarter showed what it can do," Cocks said. "We delivered a fourth consecutive quarter of double-digit revenue growth."

For the full year, the company now expects total Hasbro revenue up 7-9% in constant currency, previously up 5-7%.

It now expects an adjusted operating margin of 27-28%, previously 25-26%. It also expects adjusted EBITDA of $1.575 billion to $1.625 billion, previously $1.45 billion to $1.50 billion.

The company doubled its share repurchase target for 2026, according to the release, but the release does not state the new dollar amount. Hasbro Chief Financial Officer and Chief Operating Officer Gina Goetter said the company was making the change. "Given this momentum, we are raising our 2026 outlook and doubling our share repurchase target for the year, balancing investment in the business with returning cash to shareholders," Goetter said.

For the first nine months, revenue rose 15% to $3,735.1 million from $3,255.4 million. Reported net earnings were $5.27 per diluted share, compared with a loss of $3.74 a year earlier. Adjusted net earnings per diluted share were $5.65, against $4.03.

Year-to-date operating profit was $1,040.1 million, compared with a loss of $286.4 million a year earlier. Adjusted operating profit rose 35% to $1,110.4 million. Both figures include a $56 million impairment related to digital games, offset by a $55 million benefit from tariff refunds.

Year-to-date Entertainment revenue fell 13%, which the company tied to the nature and timing of deals. Year-to-date Consumer Products revenue rose 3%.

The company said Consumer Products revenue growth more than offset disruptions from unauthorized network access it had previously disclosed. The access was identified in late March 2026. Related costs were $1.0 million in the quarter and $11.8 million for the first nine months, including third-party legal and remediation costs.

Restructuring and severance costs were $16.3 million in the quarter, compared with a $3.2 million credit a year earlier. The company also recognized a $4.7 million nonrecurring gain on the sale of a facility in the quarter.

Hasbro returned $206 million to shareholders in the quarter through dividends and share repurchases. It returned $445 million for the first nine months.

The company also deployed $79 million toward debt reduction in the quarter, through open-market bond repurchases and U.S. Treasury purchases to prefund the 2026 and 2027 bond maturities. Year to date, that figure is $226 million.

The board declared a quarterly cash dividend of $0.70 per common share, unchanged from a year earlier. The dividend is payable Dec. 2 to shareholders of record at the close of business on Nov. 18.

The company said it would webcast its third-quarter earnings call at 8:30 a.m. Eastern Time on Tuesday.