HASBRO, INC. Earnings Summary — Q2 FY2026

• Wizards of the Coast and Digital Gaming revenue jumped 26% YoY, driven by a 36% increase in Magic: The Gathering sales.
• Operating profit surged 58% to $270 million, benefiting from a high-margin product mix and scale in digital gaming.
• Consumer Products revenue remained flat at $397.9 million, as growth in Star Wars toys was offset by difficult licensing comparisons.
• Entertainment segment revenue fell 24% due to deal timing, though profitability improved due to lower royalty expenses.
• The company successfully deployed $96 million toward debt reduction while issuing $400 million in new notes to manage 2026 maturities.
• Management disclosed an unauthorized network access event in late March 2026, which is undergoing restoration and insurance documenting.

Hasbro reiterated its full-year 2026 guidance, expecting total revenue to increase 3-5% in constant currency and adjusted operating margins to reach 24-25%. Adjusted EBITDA is projected between $1.40 billion and $1.45 billion.

Improving

A strong start to the year suggests the 'Playing to Win' strategy is gaining traction, particularly the record-breaking performance of Wizards of the Coast which is offsetting cyclicality in traditional toys.

The outlook remains optimistic regarding the digital gaming flywheel and the resilience of core IP, though the company acknowledges ongoing risks related to cybersecurity remediation costs and macro consumer discretionary spending.