Hasbro, Inc. HAS reported third-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased 15% year over year, while adjusted earnings surged 72.6% from the previous year.
The quarter benefited from robust performance at Wizards of the Coast, led by Magic: The Gathering, alongside growth in Consumer Products and Entertainment. A favorable business mix, productivity improvements and approximately $55 million in tariff refunds further supported profitability. Magic: The Gathering revenues surpassed $600 million for the first time in a quarter.
HAS' Q3 Earnings & Revenues
In the third quarter of 2026, HAS reported adjusted earnings of $2.90 per share, which increased 72.6% year over year and surpassed the consensus mark of $1.86 by 55.9%.
Net revenues rose 15% year over year to $1.6 billion and topped the consensus estimate of $1.47 billion by 8.6%. Reported earnings were $2.77 per share compared with $1.64 a year ago.
Hasbro, Inc. Price, Consensus and EPS Surprise
Hasbro, Inc. price-consensus-eps-surprise-chart | Hasbro, Inc. Quote
Hasbro's Wizards Segment Powers Growth
Wizards of the Coast and Digital Gaming revenues increased 31% year over year to $747.2 million. The segment's performance was driven by strength in Magic: The Gathering, which generated $616.1 million in revenues, up 34% year over year. Growth was supported by The Hobbit and Reality Fracture releases.
Tabletop gaming revenues increased 39% to $613.1 million, while digital and licensed gaming revenues rose 3% to $134.1 million. Monopoly Go! contributed $41 million in quarterly revenues.
Operating profit increased 46% year over year to $367.4 million. The operating margin expanded to 49.2% from 44%, reflecting strong revenue growth. The segment's operating profit included a $7 million benefit from tariff refunds.
HAS' Consumer Products Performance Improves
Consumer Products revenues increased 4% year over year to $827.9 million, driven by growth across Marvel, K-Pop Demon Hunters and Transformers. Entertainment releases, including Spider-Man: Brand New Day, and continued momentum in GEM2 categories supported sales.
North American revenues increased 5% to $504.9 million, while Asia Pacific and Latin America registered growth of 9% and 5%, respectively. European revenues remained flat at $181.1 million.
Adjusted operating profit doubled year over year to $177.7 million from $88.9 million, supported by productivity initiatives. The adjusted operating margin expanded to 21.5% from 11.2%. Results included a $48 million benefit from tariff refunds.
Hasbro's Entertainment Segment Gains Momentum
Entertainment revenues increased 9% year over year to $20.2 million, driven by growth in Family Brands. The category generated $18.4 million in revenues, reflecting a 10% increase, while Film and TV revenues declined 5% to $1.8 million.
Adjusted operating profit rose 63% year over year to $18.4 million, supported by a favorable licensing mix. The adjusted operating margin expanded to 91.1% from 60.8%.
HAS' Profitability Reflects Favorable Mix
Adjusted operating profit increased 52% year over year to $541.2 million from $355.6 million, driven by revenue momentum, favorable business mix and cost productivity. Adjusted EBITDA climbed 46.4% to $604.5 million from $412.9 million.
The adjusted operating margin expanded to 33.9% from 25.6%. Reported operating profit increased to $517.3 million from $341.1 million. Selling, distribution and administration expenses rose to $331.5 million from $287.3 million, while advertising expenses declined to $96.2 million from $108.3 million.
Hasbro's Balance Sheet and Capital Allocation
Cash and cash equivalents were $850.7 million at quarter-end, up from $620.9 million a year earlier. Short-term investments totaled $576.2 million, while inventories declined to $358.9 million from $396.7 million. Long-term debt decreased to $2.62 billion from $3.32 billion.
Net cash provided by operating activities totaled $907.3 million in the first nine months of 2026 compared with $490 million a year earlier.
HAS returned $206 million to shareholders through dividends and share repurchases during the quarter and deployed $79 million toward debt reduction and prefunding bond maturities. The company paid $99 million in dividends and declared a quarterly dividend of 70 cents per share.
HAS Raises FY26 Outlook
Management now expects 2026 revenues to increase 7-9% in constant currency, up from its prior projection of 5-7% growth.
The adjusted operating margin is expected to be 27-28%, compared with the previous forecast of 25-26%. Adjusted EBITDA is projected between $1.575 billion and $1.625 billion, up from the earlier range of $1.45 billion to $1.50 billion.
Hasbro also doubled its share repurchase target for 2026. The company intends to continue investing in its core businesses, returning capital to shareholders and reducing debt.
HAS’ Zacks Rank & Key Picks
Currently, Hasbro has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Marriott Vacations Worldwide Corporation VAC, Lindblad Expeditions Holdings, Inc. LIND and AMC Entertainment Holdings, Inc. AMC.
Marriott Vacations presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Marriott Vacations stock has jumped 90.9% in the year-to-date period. The Zacks Consensus Estimate for VAC’s 2026 sales and EPS implies growth of 8.3% and 22.5%, respectively, from the year-ago levels.
Lindblad Expeditions currently sports a Zacks Rank #1. The stock has surged 138% in the year-to-date period.
The Zacks Consensus Estimate for Lindblad Expeditions’ 2026 sales and EPS indicates growth of 14% and 175.9%, respectively, from the year-ago period’s levels.
AMC Entertainment presently sports a Zacks Rank #1. The stock has rallied 91% in the year-to-date period.
The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 18.4% and 81.3%, respectively, from the year-ago levels.
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Hasbro, Inc. (HAS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).