10-Q · May 13, 2026
Hasbro reported strong Q1 2026 results with revenue of $1.0 billion, a 12.7% increase year-over-year. This performance was driven by significant growth in the Wizards of the Coast and Digital Gaming segment, leading to…
Earnings analysis · 10-Q
HAS earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Hasbro delivered strong third-quarter results, with revenue up 15.0% year over year to $1,595.3M, diluted EPS of $2.77, and operating margin expanding to 32.4%. Growth was led by Wizards of the Coast and Digital Gaming,…
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Hasbro delivered strong third-quarter results, with revenue up 15.0% year over year to $1,595.3M, diluted EPS of $2.77, and operating margin expanding to 32.4%. Growth was led by Wizards of the Coast and Digital Gaming, particularly Magic: The Gathering, while Consumer Products profitability benefited from tariff recoveries and productivity actions. Operating cash flow was $907.3M through nine months and liquidity was supported by $1.43B of cash and short-term investments, although tariff normalization, cybersecurity costs, digital-games impairment, and $893.9M of near-term debt maturities remain key risks.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $2.77
What stood out
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Revenue and EPS accelerated
Third-quarter revenue was $1,595.3M, up 15.0% from $1,387.5M a year ago and approximately 39.9% from $1,140M in Q2 2026. Diluted EPS was $2.77 versus $1.64 a year ago and $1.12 in Q2 2026.
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Margins improved materially
Operating margin expanded to 32.4% from 24.6% a year ago and 22.2% in Q2 2026. Gross margin was approximately 75.9%, versus 70.1% a year ago, helped by $54.5M of tariff recoveries that reduced cost of sales.
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Wizards drove topline growth
Wizards of the Coast and Digital Gaming revenue increased 30.6% to $747.2M, led by Tabletop Gaming revenue of $613.1M, up 38.8%; Magic: The Gathering exceeded $600M of quarterly revenue for the first time.
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Consumer Products profitability rebounded
Consumer Products revenue grew 3.9% to $827.9M, while operating profit rose 117.0% to $173.8M. The segment benefited from $47.9M of IEEPA tariff benefits, Marvel and KPop Demon Hunters demand, and productivity initiatives.
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Cash generation strengthened
Operating cash flow rose to $907.3M for the first nine months from $490.0M a year ago. Property, plant and equipment and software additions totaled $148.5M, implying strong cash conversion, although the filing does not report free cash flow as a defined measure.
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Liquidity supports capital returns
Liquidity remained substantial, with $850.7M of cash and cash equivalents and $576.2M of short-term investments at September 27, 2026. The company had $1.1B available under its revolving facility and increased its 2026 share-repurchase target to $400M, with $149.3M repurchased through nine months.
What to watch
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Tariff benefits may reverse
The $54.5M of tariff recoveries reduced third-quarter cost of sales, including $47.9M in Consumer Products, but management warns that tariffs could increase costs, reduce demand and materially affect sales and earnings. The remaining $13.0M of refunds remains subject to administrative processing and related CIT proceedings.
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Cybersecurity incident remains costly
The late-March unauthorized network access caused order-processing, shipping and invoicing delays and $11.8M of incremental costs through nine months, including $1.0M in the third quarter. Although operations returned to pre-incident practices in Q3, the company expects additional costs and faces potential legal and remediation exposure.
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Digital games portfolio reset
Hasbro recorded a $56.4M non-cash impairment charge in Q2 2026 after refocusing its Digital Games portfolio, including cancellation of titles scheduled for release in 2028 and beyond. This indicates execution and return-on-investment risk in the digital portfolio.
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Near-term debt maturities
The company had $893.9M of current long-term debt due in 2026 and 2027 within total long-term debt of $3.5B. Management has prefunded maturities with short-term investments, but refinancing and liquidity requirements remain material.
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Legacy brands and licensing weakened
Reinvent Brands revenue declined 15.8% in Q3 to $138.1M, driven by lower sales of Nerf, Furby and Nanomals; nine-month Reinvent Brands revenue fell 9.7% to $306.9M. Licensing revenue also declined to $144.3M from $152.6M year over year.
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Consumer Products growth uneven
Consumer Products revenue increased only 3.1% to $1,688.8M for the first nine months, with Asia Pacific down 2.8% to $173.6M and Latin America down 1.7% to $144.3M. The segment was also negatively affected by Q2 network-access disruptions.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. Management states that it expects to receive the remaining $13.0M of Phase 2 and Phase 3 IEEPA tariff refunds within six months and expects to continue repurchasing shares through the balance of 2026; broader 2026 outlook was provided in the October 20 earnings release rather than this filing.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.