NEW YORK, May 20, 2026, 08:04 EDT
- Hasbro topped Wall Street forecasts for first-quarter revenue and adjusted earnings before the U.S. market opened.
- Magic: The Gathering pushed up results in the Wizards and Digital Gaming unit.
- The company is sticking with its 2026 outlook. Cyber costs and tariffs are still risks.
Hasbro Inc beat forecasts for revenue and adjusted earnings in the first quarter, the company said Wednesday. Magic: The Gathering and other digital titles drove demand, even as a cybersecurity issue led to a delay in the full results. Hasbro posted $1 billion in revenue, topping LSEG’s $964.38 million consensus. Adjusted EPS was $1.47, more than the $1.13 expected.
Hasbro’s report hit before the New York open, dropping on a regular market day. For investors, it’s a straight read on whether the pivot to games, cards and its own brands is still holding up against weak toy sales. U.S. markets close next for Memorial Day on May 25, NYSE’s calendar shows.
Hasbro said revenue rose 13% from a year ago. Operating profit jumped 58% to $270 million. Wizards and Digital Gaming revenue was up 26%, fueled by a 36% increase in Magic: The Gathering. That segment’s operating margin hit 51%. CEO Chris Cocks called it a “strong start,” saying Wizards “continues to break records.” CFO and COO Gina Goetter talked about “top-line momentum” and “disciplined execution.” Hasbro, Inc.
Hasbro’s main story now comes down to this. The company still sells toys like Play-Doh, Nerf, Transformers and Monopoly, but more of its earnings are now coming from games and licensed entertainment, not just holiday toys.
The company is sticking with its outlook for full-year 2026, still seeing revenue up 3% to 5% in constant currency. Adjusted EBITDA is expected to stay in the $1.40 billion to $1.45 billion range.
Hasbro shares finished Tuesday up 3.69% at $97.18. The stock beat the wider market and rivals Mattel, Electronic Arts, and Take-Two Interactive, but Hasbro still trades under its 52-week high from February at $106.98.
Competition in the toy sector is uneven. Mattel, Hasbro’s main rival, reported better-than-expected quarterly sales last month on gains in Hot Wheels and entertainment, but gross margin slipped due to tariffs and currency moves. Investors are watching which companies can build brands into higher-margin media, games and licensing streams.
UBS’s Arpine Kocharyan said ahead of Hasbro’s first quarter that “strength in Wizard demand” was the main question for the company, pointing to Wizards of the Coast, which includes Magic: The Gathering. Investors had been watching for that. Investing.com
Risks remain for Hasbro after the quarter. The company said it contained the unauthorized network access discovered in late March, but it still doesn’t know the final cost for legal work, remediation or other expenses. Hasbro expects to file for reimbursement with cyber insurance. Tariff risks are still in play, and Hasbro is leaning harder on Magic, a brand that now has an outsized influence on its earnings model.
Hasbro reported a cyber breach in an April 1 filing, saying it found unauthorized access to its network on March 28 and took some systems down while bringing in outside cyber experts to investigate. Hasbro kept taking orders, shipping products and running its main business using continuity plans, according to the company.
Right now, Magic gets a first beat. The bigger issue is if the company can hold up for the rest of 2026 and deal with tariffs, cyber spending, and shaky toy demand.
