Hasbro's adjusted earnings of $2.90 a share were more than 50% above estimates, and it raised its full-year forecasts and doubled its buyback target. The toy business grew 4%. Shares rose about 10%.
Hasbro is still known as a toy company. Its third quarter says it increasingly runs on a card game.
Hasbro reported third-quarter revenue of $1.60 billion on Tuesday, up 15% from a year earlier and well above the LSEG consensus of $1.48 billion. Adjusted earnings were $2.90 a share, against the $1.86 consensus, a beat of about 56%. Adjusted operating profit rose 52% to $541 million.
The shares were up 10.2% at $108.49 at about 2 p.m. Eastern, near their 52-week high.
The engine
Most of the growth came from one place. Revenue in Wizards of the Coast and Digital Gaming rose 31% to $747.2 million, and the segment's operating margin was 49%. Within it, Magic: The Gathering brought in $616.1 million, up 34%, its first quarter above $600 million.
"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," Chief Executive Chris Cocks said.
Magic alone accounted for about 39% of Hasbro's revenue in the quarter. Consumer Products, the toys and games business most people associate with the company, grew 4% to $827.9 million.
The refunds
Part of the quarter will not repeat. Hasbro's results include about $55 million of tariff refunds, $48 million in Consumer Products and $7 million in Wizards. That is about 10% of adjusted operating profit for the quarter. It does not explain the whole beat: a 56% earnings surprise on a quarter whose revenue beat by about 8% points to strong margins in the card business as well. But it does mean the Consumer Products segment, already the slower grower, had help from a one-time item.
The raise
Hasbro raised its full-year forecasts. It now expects revenue growth of 7% to 9% in constant currency, up from 5% to 7%, an adjusted operating margin of 27% to 28%, up from 25% to 26%, and adjusted EBITDA of $1.575 billion to $1.625 billion, up from $1.45 billion to $1.50 billion. Chief Financial Officer Gina Goetter said the company is "raising our 2026 outlook and doubling our share repurchase target for the year."
Market implications
One reading is that Hasbro has become a gaming company with a toy business attached, and the market should value it that way. Magic is growing above 30%, the Wizards segment that houses it earns a margin near 50%, and its share of revenue keeps rising.
A second reading is that concentration is the risk. A single franchise is now carrying the company's growth, toys are growing slowly, the quarter benefited from refunds, and the holiday season, which drives Consumer Products, is still ahead.
What to watch
Magic release schedules and fourth-quarter Wizards revenue; Consumer Products sales over the holidays; the size and pace of the doubled buyback; Mattel's results; and tariff policy. A fourth quarter in which Consumer Products grows without refunds would ease the concentration concern.