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FY2026 Q2
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Hasbro, Inc. earnings call
Buzzberg read
Magic up 32% in Q2, raising Wizards outlook
Hasbro delivered strong Q2 with Magic surging 32%, consumer products returning to growth, and full-year guidance raised across revenue, margins, and EBITDA. Management highlighted durability of Magic as a mega-franchise, a new Nintendo licensing deal for Zelda products, and Disney's robust film slate supporting toy demand. Digital gaming strategy is being streamlined with a $56M impairment on cancelled projects, while 2026 is positioned as the peak investment year. Q2 total revenue $1.14B (+16% y/y), Wizards segment up 27% to $664M led by Magic (+32%) on Marvel Super Heroes and Strixhaven launches.
Buzzberg read Magic up 32% in Q2, raising Wizards outlook Hasbro delivered strong Q2 with Magic surging 32%, consumer products returning to growth, and full-year guidance raised across revenue, margins, and EBITDA. Management highlighted durability of Magic as a mega-franchise, a new Nintendo licensing deal for Zelda products, and Disney's robust film slate supporting toy demand. Digital gaming strategy is being streamlined with a $56M impairment on cancelled projects, while 2026 is positioned as the peak investment year. Q2 total revenue $1.14B (+16% y/y), Wizards segment up 27% to $664M led by Magic (+32%) on Marvel Super Heroes and Strixhaven launches. Read full analysisCollapse analysis
Hasbro delivered strong Q2 with Magic surging 32%, consumer products returning to growth, and full-year guidance raised across revenue, margins, and EBITDA. Management highlighted durability of Magic as a mega-franchise, a new Nintendo licensing deal for Zelda products, and Disney's robust film slate supporting toy demand. Digital gaming strategy is being streamlined with a $56M impairment on cancelled projects, while 2026 is positioned as the peak investment year. Q2 total revenue $1.14B (+16% y/y), Wizards segment up 27% to $664M led by Magic (+32%) on Marvel Super Heroes and Strixhaven launches.
- Full-year guidance raised: revenue growth 5-7%, adjusted operating margin 25-26%, EBITDA $1.45-1.5B.
- New multi-year licensing agreement with Nintendo for The Legend of Zelda products announced.
- Digital gaming portfolio streamlined: $56M impairment on canceled 2028+ projects; total digital spend expected to decline at least 25% by 2028.
CONSUMER_PRODUCTS Revenue$0.463BReported
ENTERTAINMENT Revenue$0.0128BReported
Revenue$1.1396B+14% QoQ
WIZARDS Revenue$0.664BReported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
Marvel superheroes fastest set to $300M
Capex
Digital spend to decrease 25% annually by 2028
Show 3 more callouts
Capital return
Share repurchase target raised to $200M
Risk
$56M non-cash write-down on digital games
Risk
Cyber incident lost $25M, less than feared
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| CONSUMER_PRODUCTS Revenue | $0.463B | Reported |
| ENTERTAINMENT Revenue | $0.0128B | Reported |
| Revenue | $1.1396B | +14% QoQ |
| WIZARDS Revenue | $0.664B | Reported |
| EPS | $1.28 | -13% QoQ |
| Gross margin | 76.1% | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Operating margin | FY2026 | 25%–26% | 25.5% | Raised |
| Operating marginCONSUMER_PRODUCTS | FY2026 | 6%–8% | 7% | Maintained |
| Operating marginENTERTAINMENT | FY2026 | 50% | 50% | Maintained |
| Revenue | FY2026 | 5%–7% | 6% | Raised |
AI, capex & demand read
Management read
confident
Management expressed confidence, raising full-year guidance after a strong first half driven by broad-based growth in Magic and consumer products, with no notable shift in tone from prior calls.
Management AI read
Management discussed CharacterOS, an AI-powered behavioral licensing platform enabling Hasbro characters in digital contexts, with a dozen characters already available for licensing pilots through their six-wall AI studio and Eleven Labs' marketplace.
Investment and capacity
Management noted 2026 is the peak year for digital investment, with total digital spend expected to decrease at least 25% annually by 2028, while continuing to invest in Magic production capacity and supply chain.
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Companiesreturns since call
Partners
Partners
Chris Cox
New licensing deal expands Hasbro's IP-based product lineup, leveraging Nintendo's popular franchise; signals continued strength in premium licensing partnerships.
Evidence
“we announced a multi-year licensing agreement with Nintendo to develop products inspired by the Legend of Zelda franchise.”
Methodology & coverage
Management-only analysis. All 1 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.