Hasbro (HAS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 13% year-over-year to $1,000.2 million, led by a 26% increase in Wizards of the Coast and Digital Gaming, while Consumer Products was flat and Entertainment declined 24%.

• Operating profit rose 58% to $270.3 million, with adjusted operating profit up 29% to $287 million and adjusted EPS reaching $1.47, up $0.43 year-over-year.

• Net earnings attributable to shareholders doubled to $198.4 million, and $106 million was returned to shareholders via dividends and share repurchases.

• The company managed a cybersecurity incident in late March with minimal disruption, though some Q2 revenue and profit impact is anticipated.

• $96 million was deployed toward debt reduction, with $400 million in new notes issued to refinance upcoming maturities.

Financial highlights

• Net revenue: $1,000.2 million (+13% YoY); adjusted operating profit: $287 million (+29% YoY); operating profit: $270.3 million (+58% YoY).

• Adjusted operating margin: 28.7% (up 360 bps YoY); reported operating margin: 27.0%.

• Adjusted EPS: $1.47 (up $0.43 YoY); reported EPS: $1.39 (up $0.69 YoY).

• Adjusted EBITDA: $339 million (+24% YoY); operating cash flow: $338 million, up $200 million YoY.

• Gross margin: 76.4%; cash and equivalents: $857.1 million at quarter end; total debt: $3.6 billion.

Outlook and guidance

• Full-year 2026 guidance maintained: consolidated revenue growth of 3–5% (constant currency), adjusted operating margin of 24–25%, and adjusted EBITDA of $1.4–$1.45 billion.

• Wizards expected to deliver mid-single-digit revenue growth with low 40% operating margins; Consumer Products to grow low single-digits with 6–8% margins.

• Entertainment segment revenue expected to be slightly positive year-over-year with ~50% operating margin.

• Cyber incident expected to shift $40–$60 million of Consumer Products revenue from Q2 to Q3, with full-year guidance unchanged.

• Medium-term guidance (2025–2027): mid-single digit revenue CAGR, 50–100bps annual margin expansion, $1 billion gross cost savings.