Hasbro Smashes Q3 Estimates as Magic: The Gathering Posts Record Quarter Above $600 Million

Hasbro delivered a blowout third quarter on October 20, 2026, reporting adjusted EPS of $2.90 against a Wall Street estimate of $1.86, a 56% beat and a 73% increase from the $1.68 posted in the same period a year earlier. Revenue rose 15% year over year to $1.60 billion, topping the $1.48 billion consensus, while adjusted EBITDA of $604.5 million far exceeded the $442 million estimate and was up 46% from a year ago. Adjusted operating profit jumped 52% to $541 million, with margins expanding sharply to 33.9% from 25.6%.

The standout driver was Magic: The Gathering, which generated $616.1 million in quarterly revenue, a 34% year-over-year gain and the first time the franchise has surpassed $600 million in a single quarter. Releases tied to The Hobbit and Reality Fracture were credited for the surge. The broader Wizards of the Coast and Digital Gaming segment posted revenue of $747.2 million, up 31% year over year, with operating profit climbing 46% to $367.4 million and a segment margin of 49.2%. Total gaming revenue across all units reached $934.9 million, up 24%.

Consumer Products revenue grew a more modest 4% to $827.9 million, but adjusted operating profit there doubled to $177.7 million, aided by a $48 million tariff refund benefit. The company reported $55 million in total tariff refunds for the quarter. Hasbro also returned $206 million to shareholders through dividends and buybacks, directed $79 million toward debt reduction, and held $850.7 million in cash alongside $576.2 million in short-term investments. Year-to-date operating cash flow reached $907.3 million, nearly double the $490 million recorded through the same point in 2025.

On the strength of the results, Hasbro raised its full-year 2026 adjusted EBITDA guidance to a range of $1.575 billion to $1.625 billion, up from the prior range of $1.45 billion to $1.50 billion and above the analyst estimate of $1.47 billion. Full-year revenue growth guidance was lifted to 7% to 9% in constant currency, compared with the previous 5% to 7% range, and adjusted operating margin is now expected to land between 27% and 28%. Management signaled continued confidence heading into year-end, citing the strength of the Magic pipeline and expectations for growth into 2027. HAS shares outperformed peers on the trading day, and options activity in the stock was notably elevated.