Hasbro, Inc. raised its full-year 2026 sales outlook to a range of $4.936 billion to $5.030 billion, compared to the previous guidance of $4.842 billion to $4.936 billion, following a strong second quarter where net revenues of $1.14 billion exceeded expectations. The increase was driven by record performance in its Wizards and Digital Gaming segment, particularly from Magic: The Gathering, which grew 32% year-over-year. The company also updated its profitability targets, reflecting confidence in its growth trajectory for the remainder of the fiscal year, and announced a multi-year licensing agreement with Nintendo for The Legend of Zelda franchise commencing in 2027.

Second Quarter 2026 Financial Highlights

Net revenues increased 16% versus the prior year period to $1.14 billion. Operating profit was $253 million, while Adjusted operating profit rose 14% to $282 million. Results included a $56 million non-cash impairment related to the Company's refocused Digital Games portfolio for 2028 and beyond. The company returned $239 million to shareholders through dividends and repurchases and deployed $147 million toward debt reduction.

Segment Performance

The Wizards and Digital Gaming segment was the primary growth driver, with revenue increasing 27% versus the prior year to $664 million. Magic: The Gathering eclipsed $500 million in quarterly revenue for the first time, fueled by the debut of Marvel Super Heroes and Secrets of Strixhaven. Segment operating profit was $270 million, inclusive of the impairment charge.

Consumer Products revenues increased 5% to $463 million despite disruption from a previously disclosed unauthorized network access. The segment reported an adjusted operating loss of $7.5 million. The Entertainment segment reported a 20% revenue decline to $12.8 million due to deal timing, with operating profit of $8.6 million.

Unauthorized Network Access Update

In late March 2026, the Company identified unauthorized access to its network, causing disruptions throughout the second quarter. Operations have since normalized. Direct incremental expenses were $11 million, and the revenue impact was estimated at $25 million for the quarter, lower than the previously forecasted $40 to $60 million. No insurance proceeds were recognized during the period.

2026 Full-Year Outlook

Hasbro raised its full-year 2026 guidance following the strong quarter. The updated outlook reflects higher expectations for revenue growth and profitability. The company increased its share repurchase target from $100 million to a minimum of $200 million.

The Board of Directors declared a quarterly cash dividend of $0.70 per common share, payable on September 2, 2026, to shareholders of record on August 19, 2026.

Jefferies analyst Kylie Cohu maintains a Buy rating on Hasbro (NASDAQ: HAS) while lowering the price target to $110 from $120. The adjustment reflects a revised outlook on the stock's valuation despite the continued positive recommendation.

The revised price target of $110 is a decrease from the previous target of $120. Hasbro remains a Buy-rated stock within Jefferies' coverage, indicating confidence in the company's long-term performance potential.

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