Hasbro Q3 revenue beats on Magic: The Gathering game strength; lifts 2026 outlook

By Reuters News


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


Reuters Recommended Reads

  • Oct 19 - Mattel appoints Amgen's Peter Griffith as CFO, succeeding Paul Ruh


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.