Third Quarter 2026
Filed Oct 20, 2026Hasbro Reports Third Quarter 2026 Financial Results; Magic: The Gathering Surpasses $600 million in Quarterly Revenue for First Time; Raises 2026 Financial Outlook & Doubles Share Repurchase Target
Third-quarter net revenues rose 15%, adjusted operating profit increased 52%, and the Company raised its full-year constant-currency revenue, adjusted operating margin, and adjusted EBITDA outlook. Wizards of the Coast and Digital Gaming delivered 31% revenue growth, led by 34% Magic: The Gathering growth.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 net salesGAAP | $1.45B | – | – |
| Q3 licensing revenueGAAP | $144.3M | – | – |
| Q3 net revenuesGAAP | $1.60B | – | 15% |
| Q3 cost of salesGAAP | $384.8M | – | – |
| Q3 program cost amortizationGAAP | $5.4M | – | – |
| Q3 royaltiesGAAP | $142.1M | – | – |
| Q3 product developmentGAAP | $103.4M | – | – |
| Q3 advertisingGAAP | $96.2M | – | – |
| Q3 amortization of intangible assetsGAAP | $14.6M | – | – |
| Q3 selling, distribution and administrationGAAP | $331.5M | – | – |
| Q3 total costs and expensesGAAP | $1.08B | – | – |
| Q3 operating profitGAAP | $517.3M | – | – |
| Q3 operating marginGAAP | 32.4 % | – | – |
| Q3 adjusted operating profitnon-GAAP | $541.2M | – | 52% |
| Q3 adjusted operating marginnon-GAAP | 33.9 % | – | – |
| Q3 net earningsGAAP | $395M | – | – |
| Q3 net earnings attributable to Hasbro, Inc.GAAP | $394.5M | – | – |
| Q3 diluted earnings per common shareGAAP | $ 2.77 | – | – |
| Q3 adjusted net earnings attributable to Hasbronon-GAAP | $412.9M | – | – |
| Q3 adjusted diluted earnings per sharenon-GAAP | $ 2.90 | – | – |
| Q3 EBITDAnon-GAAP | $568.1M | – | – |
| Q3 adjusted EBITDAnon-GAAP | $604.5M | – | – |
| Nine months net revenuesGAAP | $3.74B | – | 15% |
| Nine months operating profit (loss)GAAP | $1.04B | – | – |
| Nine months adjusted operating profitnon-GAAP | $1.11B | – | 35% |
| Nine months net earnings (loss) attributable to HasbroGAAP | $753.8M | – | – |
| Nine months diluted earnings (loss) per common shareGAAP | $ 5.27 | – | – |
| Nine months adjusted net earnings attributable to Hasbronon-GAAP | $807.4M | – | – |
| Nine months adjusted diluted earnings per sharenon-GAAP | $ 5.65 | – | – |
| Nine months net cash provided by operating activitiesGAAP | $907.3M | – | – |
| Nine months additions to property, plant and equipmentGAAP | −$70.7M | – | – |
| Nine months additions to software developmentGAAP | −$77.8M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wizards of the Coast and Digital GamingMagic: The Gathering revenue was $ 616.1 million, up 34%, while Digital and Licensed Gaming revenue was $ 134.1 million, up 3%. Monopoly Go! contributed $41 million of revenue in the third quarter. | $747.2M | – | 31% |
| Consumer ProductsGrowth was led by Marvel, KPop Demon Hunters and Transformers. Q3 sales benefited from entertainment releases, including Spider-Man: Brand New Day, and continued momentum in GEM 2 categories. | $827.9M | – | 4% |
| EntertainmentRevenue growth was driven by Family Brands, which generated $ 18.4 million of revenue and increased 10%. | $20.2M | – | 9% |
Full year 2026 outlook
- RevenueTotal Hasbro revenue up 7-9% in constant currency
- NoteAdjusted operating margin of 27-28%
- NoteAdjusted EBITDA of $1.575 billion to $1.625 billion
Capital returns
- Returned $206 million to shareholders through the quarterly dividend and share repurchases.
- Returned $445 million to shareholders through the quarterly dividend and share repurchases during the first nine months.
- During the third quarter, the Company paid $99 million in cash dividends to shareholders.
- Cash dividends declared per common share were $ 0.70 for the three months ended September 27, 2026.
- The Board of Directors declared a quarterly cash dividend of $0.70 per common share payable on December 2, 2026, to shareholders of record at the close of business on November 18, 2026.
- Repurchases of common stock were $ (149.3) million for the nine months ended September 27, 2026.
- The Company doubled its share repurchase target for the year.
What drove it
- Magic: The Gathering revenue was $ 616.1 million in the third quarter, up 34%, fueled by The Hobbit and Reality Fracture.
- Hasbro Total Gaming revenue was $ 934.9 million, up 24%.
- Wizards of the Coast and Digital Gaming operating profit was $ 367.4 million, up 46%, and operating margin was 49.2%.
- Consumer Products operating profit was $ 173.8 million and adjusted operating profit was $ 177.7 million, up 100%, driven by productivity initiatives.
- Entertainment operating profit was $ 17.1 million and adjusted operating profit was $ 18.4 million, up 63%, due to favorable licensing mix.
- Results included approximately $55 million of tariff refunds, including a $7 million benefit in Wizards of the Coast and Digital Gaming and a $48 million benefit in Consumer Products.
Concerns
- Licensing revenue was $ 144.3 million in the third quarter, compared with $ 152.6 million in the prior-year quarter.
- Consumer Products revenue growth was 4%, below the 31% growth reported for Wizards of the Coast and Digital Gaming.
- The Company identified unauthorized network access in late March 2026 and incurred $1.0 million of incremental costs in the third quarter and $11.8 million in the first nine months.
- The Company noted risks that tariff refunds it has recognized or expects to receive could be delayed, reduced or not received.
- The first nine months included a $56 million impairment related to the Company's refocused digital games portfolio.
What to watch
- Execution against full-year total Hasbro revenue growth guidance of 7-9% in constant currency.
- Whether Magic: The Gathering sustains growth following $ 616.1 million of third-quarter revenue and $ 1,630.9 million of nine-month revenue.
- Consumer Products performance during the seasonal fourth quarter after 4% third-quarter revenue growth.
- The amount and timing of tariff refunds and their effect on operating results.
- Debt reduction activity, including the prefunding of the 2026 and 2027 bond maturities.
- Costs and operational effects related to the unauthorized network access.
Balance sheet and cash flow
- Cash and cash equivalents were $ 850.7 million at September 27, 2026, compared with $ 620.9 million at September 28, 2025.
- Short-term investments were $ 576.2 million at September 27, 2026.
- Current portion of long-term debt was $ 893.9 million at September 27, 2026.
- Long-term debt was $ 2,616.4 million at September 27, 2026, compared with $ 3,318.8 million at September 28, 2025.
- During the quarter, the Company deployed $79 million toward debt reduction through open-market bond repurchases and U.S. Treasury purchases to prefund the 2026 and 2027 bond maturities.
- During the first nine months, the Company deployed $226 million toward debt reduction through open-market bond repurchases and U.S. Treasury purchases to prefund the 2026 and 2027 maturities.
- Nine-month net cash utilized by investing activities was $ (618.4) million.
- Nine-month net cash utilized by financing activities was $ (214.5) million.
- Cash, cash equivalents and restricted cash at end of period were $ 850.7 million.
Analysis
Hasbro reported a strong third quarter, with GAAP net revenues of $ 1,595.3 million, up 15% from $ 1,387.5 million. GAAP operating profit increased to $ 517.3 million from $ 341.1 million, while adjusted operating profit increased 52% to $ 541.2 million. GAAP diluted earnings per share were $ 2.77 and adjusted diluted earnings per share were $ 2.90. Results included approximately $55 million of tariff refunds, which benefited both Wizards of the Coast and Digital Gaming and Consumer Products.
Management, verbatim
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. Our asset-light licensing model lets great partners extend our brands while we focus on what we do best.
Chris Cocks, Hasbro Chief Executive Officer
With a Magic lineup that keeps building, we expect a strong finish to 2026 and continued growth in 2027.
Chris Cocks, Hasbro Chief Executive Officer
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.
Gina Goetter, Hasbro Chief Financial Officer and Chief Operating Officer
Not in the filing
stated, not guessed- Q3 operating cash flow
- Q3 free cash flow
- Free cash flow for the nine months ended September 27, 2026
- Q3 gross profit
- Q3 gross margin
- Full-year 2026 GAAP revenue guidance
- Full-year 2026 GAAP operating profit or operating margin guidance
- Full-year 2026 tax-rate guidance
- Prior-quarter comparisons for reported Q3 metrics
- A separately provided previous earnings release outlook for formal actual-versus-prior-guidance comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.