Hasbro (HAS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 16% year-over-year to $1.14 billion, led by 27% growth in Wizards of the Coast & Digital Gaming and 5% in Consumer Products, while Entertainment declined 20%.

• Magic: The Gathering posted over 32% growth in Q2, surpassing $500 million for the first time, with Marvel Super Heroes setting records and Monopoly Go! contributing $44 million.

• Operating profit for Q2 was $253 million (adjusted: $282 million, up 14%), with adjusted EPS at $1.28 and reported EPS at $1.12.

• Strategic initiatives included new licensing partnerships, a multi-year Nintendo deal, and the launch of an AI studio.

• Managed a cybersecurity incident in March 2026, incurring $10.8–$11 million in costs, with operations restored by quarter-end.

Financial highlights

• Q2 net revenue: $1.14 billion (+16% YoY); six-month revenue: $2.14 billion (+15% YoY).

• Adjusted operating profit: $282 million (+14% YoY); adjusted operating margin: 24.8% (down 40 bps); reported operating margin: 22.2%.

• Adjusted EBITDA: $330 million in Q2 (+9%), $670 million for the first half (+16%).

• Operating cash flow for first half: $604 million, up nearly $400 million year-over-year.

• Cash and cash equivalents at quarter-end: $880.5 million; short-term investments: $497.7 million.

Outlook and guidance

• Raised full-year 2026 revenue growth guidance to 5–7% in constant currency, with growth across all segments.

• Adjusted operating margin guidance increased to 25–26%; adjusted EBITDA expected at $1.45–$1.5 billion.

• Wizards segment expected to grow revenue low double digits, with operating margins in the low 40% range.

• Consumer Products revenue to grow low single digits, with 6–8% adjusted operating margin.

• Digital spend to peak in 2026, declining at least 25% by 2028.