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Hasbro raises 2026 outlook after digital gaming revenue jumps 31%: what changed in Q3
Magic: The Gathering topped $600 million in quarterly revenue for the first time. Revenue beat an independent estimate, while tariff refunds helped profit.
Hasbro reported $1.595 billion of third-quarter 2026 revenue, up 15%, as Wizards and Digital Gaming grew 31% and Consumer Products rose 4%. Magic: The Gathering exceeded $600 million of quarterly revenue for the first time.
The company raised its constant-currency revenue growth outlook to 7%–9% from 5%–7%. Adjusted operating profit rose 52% to $541 million, but the quarter also included about $55 million of tariff refunds.
Digital games drove the quarter
Wizards and Digital Gaming revenue increased 31%, led by a 34% rise at Magic: The Gathering. Hasbro said Magic exceeded $600 million of quarterly revenue for the first time, while Monopoly Go! contributed $41 million. Digital and licensed gaming grew 3%.
Toys and licensing also advanced
Consumer Products revenue rose 4%, with demand tied to Marvel, KPop Demon Hunters and Transformers. Entertainment revenue increased 9%. The mix matters: Hasbro said licensing partnerships allow it to extend brands while using less of its own capital, but performance remains sensitive to release timing and partner execution.
Revenue beat the independent estimate
Total third-quarter revenue was $1.595 billion, up 15% from a year earlier and above the $1.48 billion LSEG estimate cited by Reuters. Net sales accounted for $1.451 billion and licensing revenue for $144 million.
Profit included a tariff-refund benefit
Operating profit was $517 million and adjusted operating profit was $541 million, up 52%. Hasbro said the quarter included about $55 million of tariff refunds. That benefit is material context for the profit increase, and adjusted figures are non-GAAP measures that should be read with the company reconciliation.
The outlook rose, with risks still attached
Hasbro now expects 2026 revenue to grow 7%–9% in constant currency, up from 5%–7%. It also lifted adjusted operating margin guidance to 27%–28% and adjusted EBITDA to $1.575–$1.625 billion. These are forward-looking, partly non-GAAP targets; tariff-refund timing, consumer spending, partner performance, supply chains and execution can still change the outcome.
