Hasbro delivered a stronger-than-expected second quarter in 2026, supported by continued momentum in digital gaming and its Wizards of the Coast division. The company’s improved operating performance led management to raise its full-year outlook, signaling greater confidence in revenue growth, profitability, and cash generation despite ongoing challenges in parts of its entertainment business.

Strong Quarterly Performance Drives Higher Guidance

Hasbro reported second-quarter revenue of $1.14 billion, surpassing analyst expectations of $1.06 billion and representing a 16% increase compared with the same period last year. Adjusted earnings per share came in at $1.28, ahead of the expected $1.13, while adjusted operating profit reached $282 million, an increase of 14% year over year.

Following the stronger-than-expected results, Hasbro raised its fiscal 2026 guidance. The company now expects constant-currency revenue growth of 5%-7%, compared with its previous forecast of 3%-5%. Adjusted operating margin expectations were increased to 25%-26%, while adjusted EBITDA guidance was lifted to a range of $1.45 billion-$1.50 billion from the previous $1.40 billion-$1.45 billion forecast.

Magic: The Gathering Becomes a Key Growth Engine

The strongest performance came from Hasbro’s Wizards & Digital Gaming segment, which recorded revenue growth of 27% year over year. Magic: The Gathering generated more than $500 million in quarterly revenue for the first time in its more than 30-year history, highlighting the continued strength of the company’s gaming ecosystem.

Wizards operating profit reached $270 million, up 12% from the prior year, while Monopoly Go! contributed $44 million in revenue. Consumer Products revenue also increased by 5%, although the Entertainment segment declined 20%, reflecting uneven performance across Hasbro’s business portfolio.

Capital Allocation and Operational Challenges

Hasbro continued focusing on shareholder returns and balance sheet management during the quarter. The company returned $133 million to shareholders and reduced debt by $55 million, while also indicating plans to continue utilizing its $1 billion share repurchase authorization.

The company noted that a network incident negatively affected second-quarter results, reducing revenue by approximately $25 million and increasing expenses by $11 million. Despite this disruption, Hasbro maintained its stronger outlook, supported by operational improvements and demand across key franchises.

Looking ahead, investors will monitor whether Hasbro can sustain growth in its digital gaming and Wizards businesses while improving weaker segments. The company’s raised guidance, margin expansion targets, and capital allocation strategy will remain central factors in evaluating its performance through the remainder of 2026.