Key Takeaways
- Hasbro shares jumped 11% today after third-quarter adjusted EPS of $2.90 beat the $1.85 consensus and revenue rose 15%.
- Magic: The Gathering is now Hasbro’s profit engine, with Wizards revenue up 31% at a 49% operating margin while consumer products grew 4%.
- About $55 million of tariff refunds helped the quarter, and Hasbro’s sales and profits are increasingly concentrated in Magic.
- Hasbro raised its 2026 revenue growth outlook to 7% to 9% in constant currency, and next year’s six big Magic releases are what to watch.
Hasbro (HAS) shares are up 11% today after third-quarter results, out before the open, blew past Wall Street’s estimates.
Adjusted EPS came in at $2.90, against a $1.85 consensus, and revenue rose 15% to $1.6 billion.
“Inspiring a lifetime of play is our superpower, and this quarter showed what it can do,” said Hasbro CEO Chris Cocks.
Magic is doing the heavy lifting
That superpower is mostly Magic: The Gathering, whose revenue topped $600 million in a quarter for the first time, up 34%.
That pushed revenue in Wizards of the Coast and Digital Gaming, the segment Magic sits in, up 31%, at a 49% operating margin. Consumer products, the toy business, grew 4%.
So Wizards brought in about two-thirds of Hasbro’s adjusted operating profit on less than half its revenue. That mix shows up in the whole company’s margins…
Hasbro’s operating margin went from 6.1% in fiscal 2023 to 22.6% in fiscal 2025, and it now expects an adjusted operating margin of 27% to 28% this year, up from 25% to 26%.
The quarter did get a lift from about $55 million of tariff refunds, mostly in toys. Even without them, adjusted operating profit grew by more than a third.
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2027 is the real test
Hasbro now expects 2026 revenue to grow 7% to 9% in constant currency, up from 5% to 7%. It also raised its adjusted EBITDA outlook by $125 million at both ends and doubled its buyback target for the year.
Wall Street was already looking for $5.06 billion of revenue in 2026, and $5.41 billion in 2027…
The new range sits right around the Street’s 2026 number, so the estimates with room to rise are 2027’s. Cocks expects Magic to grow on top of a record 2026, with six tentpole sets next year.
The multiple is catching up
Hasbro traded at 16.2x forward earnings at yesterday’s close, a bit above its five-year average of 15.4x…
After today’s jump, it’s closer to 18x, still short of the nearly 21x it hit in early 2022.
My take: Hasbro is getting valued for the business Magic has built, and if next year’s lineup delivers, the multiple has room to keep climbing.
Of course, Hasbro’s own release flags that its sales and profits are increasingly concentrated in Magic, so one soft year for the game would sting. The next check is Star Trek, Magic’s last set of 2026, out in November. As a longtime Trekkie, I can’t wait.
So what is Hasbro stock actually worth?
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