Hasbro Earnings Beat Forecasts by a Wide Margin as Magic: The Gathering Topped $600 Million

Hasbro's third quarter was a blowout, not a near-miss: a trading-card game now bigger than the rest of the toy business carried the company to its fourth straight double-digit revenue gain, and management raised the full-year outlook before the holiday quarter even starts.

Hasbro, Inc. (NASDAQ: HAS) reported third-quarter 2026 net revenues of $1.595 billion, up 15 percent from $1.388 billion a year earlier and ahead of analysts' average estimate of $1.48 billion, according to LSEG data reported by Reuters. Adjusted earnings were $2.90 a share, far above the $1.86 estimate, and up from $1.68 a year earlier. Net earnings attributable to Hasbro were $394.5 million, or $2.77 a diluted share, against $233.2 million, or $1.64 a share, in the same quarter of 2025. Shares were up about 1 percent in premarket trading on Tuesday, a muted reaction to a very large beat.

Magic is now the center of the company

Magic: The Gathering revenue rose 34 percent to $616.1 million, from $459.4 million a year earlier, passing $600 million in a single quarter for the first time. Hasbro said the growth was fueled by The Hobbit and Reality Fracture releases. The Wizards of the Coast and Digital Gaming segment that houses Magic grew revenue 31 percent to $747.2 million and operating profit 46 percent to $367.4 million, at a 49.2 percent operating margin. Tabletop gaming revenue rose 39 percent to $613.1 million, digital and licensed gaming added $134.1 million, and Monopoly Go! contributed $41 million in the quarter. One card game now supplies well over a third of Hasbro's total revenue, and its segment supplies most of the company's operating profit.

"We delivered a fourth consecutive quarter of double-digit revenue growth, and Magic: The Gathering topped $600 million in quarterly revenue for the first time," chief executive Chris Cocks said. He said the company expects a strong finish to 2026 and continued growth in 2027.

Toys grew too, with a $55 million refund in the profit line

Consumer Products, the traditional toy business, grew revenue 4 percent to $827.9 million, led by Marvel, KPop Demon Hunters and Transformers collectibles and a lift from the Spider-Man: Brand New Day release. Its adjusted operating profit doubled to $177.7 million. Entertainment revenue rose 9 percent to $20.2 million, with adjusted operating profit up 63 percent to $18.4 million. One caveat belongs in bold type: the quarter's results include about $55 million of tariff refunds, $48 million of it inside Consumer Products and $7 million inside Wizards, so part of the profit jump is a refund of costs already paid, not new sales. Total adjusted operating profit rose 52 percent to $541.2 million.

A raised outlook and a doubled buyback

For the full year, Hasbro now expects total revenue to rise 7 to 9 percent in constant currency, up from 5 to 7 percent previously. It raised its adjusted operating margin outlook to 27 to 28 percent from 25 to 26 percent, and its adjusted EBITDA outlook to $1.575 billion to $1.625 billion from $1.45 billion to $1.50 billion. The company also doubled its share repurchase target to $400 million, the Wall Street Journal reported. Hasbro returned $206 million to shareholders in the quarter through its dividend and repurchases, paid $99 million in cash dividends, and declared a quarterly dividend of $0.70 a share payable on December 2, 2026, to shareholders of record on November 18, 2026. It also put $79 million toward debt reduction, prefunding its 2026 and 2027 bond maturities.

The holiday quarter is the real test

None of this settles the question that matters most for a toy company: the fourth quarter. Hasbro enters the holiday season with momentum, a raised outlook and a Magic lineup it says keeps building, but the comparisons get harder: Magic's $616.1 million quarter sets the bar for next year, the tariff refunds will not repeat as a profit tailwind in the same way, and Consumer Products still grew only 4 percent even with hit entertainment releases behind it. What to watch is whether holiday toy demand converts the raised revenue range into the top end of the new EBITDA outlook, and whether Wizards can hold margins near 49 percent as new sets cycle. If it can, this quarter will read as the moment Hasbro stopped being a toy company with a games sideline and became the reverse.