Hasbro (NASDAQ:HAS) reported first-quarter results that surpassed Wall Street expectations, supported by strong momentum in its Wizards of the Coast and digital gaming business.
Adjusted earnings per share totaled $1.47, significantly above the analyst consensus estimate of $0.99. Revenue reached $1 billion, rising 13% year over year and topping forecasts of $910.9 million.
Shares of the toy and gaming company gained 0.8% in premarket trading following the results.
Wizards of the Coast Drives Growth
The company’s Wizards of the Coast and Digital Gaming division delivered the strongest performance during the quarter, posting 26% revenue growth.
Meanwhile, Consumer Products revenue remained relatively unchanged from the prior year, while the Entertainment segment declined 24%.
Adjusted operating profit climbed 29% to $287 million, helped by higher revenue and a more favorable product mix.
“The first quarter was a strong start to the year and reflects tailwinds from our Playing to Win strategy,” said Hasbro CEO Chris Cocks.
“Wizards continues to break records, supported by MAGIC: THE GATHERING’s flywheel of player growth and expanded distribution. In Consumer Products, we delivered another quarter of growth in our toy and game business, and remain on track to grow the entire segment for the full year 2026,” he added.
Debt Reduction Efforts Continue
During the quarter, Hasbro allocated $96 million toward reducing debt. The company also issued $400 million in new notes.
Management said the proceeds will be used to fully repay debt maturing in November 2026, with any remaining funds directed toward repurchasing higher-interest, longer-dated debt securities.
Full-Year Outlook Maintained
Hasbro reaffirmed its full-year 2026 guidance.
The company continues to project total revenue growth of 3% to 5% in constant currency, adjusted operating margin of 24% to 25%, and adjusted EBITDA between $1.40 billion and $1.45 billion.