Hasbro (NASDAQ:HAS) shares were up around 2% in premarket trading on Tuesday after the toy maker reported fourth-quarter earnings and sales that comfortably exceeded market expectations.
The company delivered earnings per share of $1.51 for the quarter, far ahead of the $0.95 analysts had forecast. Revenue jumped 31% year over year to $1.45 billion, surpassing the consensus estimate of $1.26 billion.
Adjusted operating profit totaled $315 million, up $202 million from the same period a year earlier. Adjusted operating margin expanded to 21.8%, representing an improvement of roughly 12 percentage points compared with the prior year.
“I am proud of the results our team delivered in 2025 and the success of our Playing to Win strategy,” said Chris Cocks, CEO of Hasbro. “We returned the company to growth, engaged one billion fans, secured new partnerships, and made progress in our evolution into a digital-first play and IP company. We expect that momentum to carry into 2026.”
Looking ahead, Hasbro said it expects revenue to grow between 3% and 5% in constant currency in 2026. The company is guiding for an adjusted operating margin of 24% to 25% and adjusted EBITDA of $1.40 billion to $1.45 billion for the full year.
On capital allocation, Hasbro said it will continue to invest in its core operations while returning capital to shareholders through dividends and share buybacks. The board approved a new share repurchase authorization of up to $1.0 billion, replacing the previous program launched in 2018.
The company also reiterated that further debt reduction remains a key priority for 2026.