Hasbro Q3 revenue beats on Magic: The Gathering game strength; lifts 2026 outlook
Overview
US games and toy maker's Q3 revenue grew 15% yr/yr but missed analyst expectations
Company raised 2026 outlook and doubled share repurchase target for the year
Magic: The Gathering revenue topped $600 mln in Q3 for the first time
Outlook
Hasbro raises 2026 revenue growth outlook to 7-9% in constant currency, from 5-7%
Company increases 2026 adjusted operating margin forecast to 27-28%, from 25-26%
Hasbro lifts 2026 adjusted EBITDA guidance to $1.575 bln-$1.625 bln, from $1.45 bln-$1.50 bln
Result Drivers
MAGIC: THE GATHERING - Co said Magic: The Gathering revenue rose 34% in Q3 to $616 mln, driven by The Hobbit and Reality Fracture releases
WIZARDS AND DIGITAL GAMING - Segment revenue up 31% yr/yr, led by Magic: The Gathering and modest growth in digital and licensed gaming
CONSUMER PRODUCTS - Segment revenue up 4% in Q3, helped by Marvel, KPop Demon Hunters and Transformers, as well as entertainment releases like Spider-Man: Brand New Day
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.6 bln | $1.48 bln (10 Analysts) |
Q3 Net Income | $395 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the toys & children's products peer group is "buy"
Wall Street's median 12-month price target for Hasbro, Inc. is $114.50, about 16.3% above its October 19 closing price of $98.49
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)