tapebrief
HAS · Q4 2025

HAS · Q1 2026 Earnings

Bullish

Hasbro

Reported May 20, 2026

30-second summary

Q1 FY2026 revenue grew 13% YoY to $1.000B with non-GAAP EPS of $1.47 (+41% YoY) on Magic +36% and Tabletop +34%. Despite the upside, management reaffirmed the FY2026 framework unchanged (3–5% cc revenue growth, 24–25% adjusted operating margin, $1.40–1.45B EBITDA) and quantified three offsets: a cyber incident that shifts $40–60M of Q2 Consumer Products revenue into the back half, ~$20M of remediation cost, and ~$30M of oil-related freight/resin/packaging headwind at $100/barrel. Read it as: the upside is real and Magic durability is intact, but cyber timing and macro headwinds explain why FY guide didn't move despite a Q1 that prints 800bps above the FY pace.

Headline numbers

EPS

Q1 FY2026

$1.47

Revenue

Q1 FY2026

$1.00B

+13.0% YoY

+3.9% vs est.

Gross margin

Q1 FY2026

76.4%

Free cash flow

Q1 FY2026

$0.29B

Operating margin

Q1 FY2026

27.0%

Key financials

Q1 FY2026
MetricQ1 FY2026YoYQ4 FY2025QoQ
Revenue$1.00B+13.0%$1.45B-30.8%
EPS$1.47—$1.51-2.6%
Gross margin76.4%—68.7%+770bps
Operating margin27.0%—20.6%+640bps
Free cash flow$0.29B———

Guidance

Hasbro reaffirms full-year FY2026 guidance across all metrics (3-5% revenue growth, 24-25% operating margin, $1.40-1.45B EBITDA) while Q1 results significantly beat consensus on both revenue and EPS, driven by Wizards and Tabletop Gaming momentum.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

MetricPeriodPrior guideActualΔResult
RevenueQ1 FY2026—$1.0002 billion+3.9% above estimateBeat
EPS (non-GAAP)Q1 FY2026—$1.47+30.1% above estimateBeat

Reaffirmed unchanged this quarter: Adjusted Operating Margin (24%-25%), Adjusted EBITDA ($1.40 billion to $1.45 billion), Revenue growth (constant currency) (3% to 5%)

Segment performance

Q1 FY2026
SegmentQ1 FY2026YoY
Wizards of the Coast and Digital Gaming$0.582B+26.0%
Consumer Products$0.398B—
Entertainment$0.02B-24.0%
MAGIC: THE GATHERING$0.47B+36.0%
Tabletop Gaming$0.461B+34.0%
Digital and Licensed Gaming$0.121B+3.0%

Platform metrics

Q1 FY2026
SegmentQ1 FY2026
Monopoly Go! Revenue$41 million
Hasbro Total Gaming Revenue$663.9 million

Profitability

Q1 FY2026
SegmentQ1 FY2026
Wizards Operating Margin51.2%
Adjusted Operating Margin28.7%
Consumer Products Operating Loss($47.5 million) as reported
Adjusted EBITDA$339.4 million

Other KPIs

Q1 FY2026
SegmentQ1 FY2026YoY
North America$0.215B-7.0%
Europe$0.1B+17.0%
Asia Pacific$0.054B—
Latin America$0.029B+4.0%
Share Repurchases$7.7 million—
Dividend Paid$0.70 per share—

Management tone

Magic's durability framing has hardened. This quarter management tackled the sustainability question head-on: "Magic's record 2025 was no fluke...Lorwyn Eclipsed...became the best-selling Magic premiere set of all time and delivered the highest engagement in organized play statistics we've seen since the pandemic." The shift is from "the franchise is growing" to "the franchise is structurally above its old baseline" — and the Q2 setup language signals management thinks Q1 momentum extends into the seasonally bigger quarter, with Strixhaven already having surpassed Lorwyn Eclipsed as the largest premiere set ever.

Universes Beyond has graduated to proven repeatable funnel. Management's framing that Universes Beyond is expanding the Magic audience — combined with the third-largest backlist quarter ever — is the strongest endorsement to date that the partnership funnel is converting new players into first-party set buyers. The upcoming slate (Marvel Super Heroes, Hobbit, Star Trek) plus the Disney/Marvel digital rights deal for Magic Arena signals partnership pipeline depth management wasn't framing this concretely before.

Cost discipline narrative tightened into specific dollar quantification. Every cost item this quarter carries a dollar tag: ~$30M of oil-related impact at $100/barrel (largely H2, mostly Consumer Products), ~$20M cyber remediation (one-time, excluded from adjusted EBITDA), and $40–60M of Q2 receivables shifted to Q3. Adjusted operating margin printed 28.7% in Q1 against a 24–25% FY guide — a 370bps Q1 buffer that management plans to spend on the H2 headwinds while still hitting the framework. Cost transformation contributed $37M of gross savings in Q1, on track for the $150M FY commitment.

Recurring themes management leaned on this quarter:

Magic ecosystem health and record engagement across tabletop, digital, and live experiencesUniverses Beyond as successful new player acquisition lever maintaining ecosystem growthGem-squared category outperformance (22% growth vs. -3% rest of toy industry) validating strategic focusCyber incident contained with Q2-Q3 revenue shift rather than cancellation; systems restoration on track for JuneCost discipline delivering margin expansion despite oil/freight headwinds and elevated royaltiesEntertainment slate (Star Wars, Toy Story 5, Spider-Man, Avengers Doomsday) creating consumer products opportunity

Risks management surfaced:

Oil price volatility impacting freight, resin, and packaging costs (~$30M headwind if at $100/barrel)Tariff policy uncertainty despite $50M claim filed; timing of refund unresolvedCard stock and printing capacity constraints from new market entrants; reprints now taking 3-4 months vs. 6 weeks historicallyCyber incident remediation lumpiness creating Q2 invoicing/receivables delays shifting to Q3; additional $20M remediation costsQ4 Magic/Wizards tough comparisons likely producing flat to declining segment growth in that quarter

Answers to last quarter's watch list

Magic Q1 sustainability — Magic printed +36% YoY in Q1 to $469.6M, with management calling 2025 "no fluke" and citing record premiere-set performance plus the third-largest backlist quarter ever. Lorwyn Eclipsed and TMNT Universes Beyond both outperformed expectations.
Resolved positively
Consumer Products Asia Pacific recovery — APAC printed flat (0%) in Q1, a meaningful step up from the prior quarter. Europe at +17% was the bright spot; North America declined -7% partially on cyber-driven invoicing delays.
Resolved positively
Harry Potter primary toy license revenue framing — The press release and prepared remarks did not provide specific dollar contribution for Harry Potter. Management's commentary referenced the broader entertainment slate (Star Wars/Mandalorian and Grogu, Toy Story 5, Spider-Man, Avengers Doomsday) as the H2 CP setup but did not isolate Harry Potter dollars.
Continue monitoring
Reinstatement of next-quarter guidance — No formal next-quarter revenue/EPS range issued, though management provided segment-level directional Q2 commentary (CP +low single digits in Q2, Wizards "quite robust" Q2). Status: Partial — directional Q2 color provided, formal range not
AI productivity / cost savings showing up in margin — Management explicitly quantified: "Our cost transformation efforts delivered $37 million in gross savings, which has us on track for our full-year commitment of $150 million." That puts Q1 at ~25% of the FY target — on pace. Q1 adjusted operating margin printed 28.7%, 370bps above the 24–25% FY guide. The FY guide was not raised despite the buffer, consistent with management's plan to absorb the H2 cyber and oil headwinds. Status: Resolved positively on quantification; full-year flow-through to monitor

What to watch into next quarter

The Q2 print is the cyber test. $40–60M of CP revenue shifting from Q2 to mostly Q3, ~$20M of remediation cost, and systems restoration on track for June. Watch whether Consumer Products Q2 lands in the "low single-digit growth" zone management guided and whether Q3 absorbs the shifted revenue cleanly.

Wizards Q4 comp framing. Management explicitly flagged Q4 Wizards as the quarter that "might be down" against last year. Watch whether Q2 commentary tightens the Q4 trajectory expectation.

The 24–25% FY adjusted operating margin guide vs. the 28.7% Q1 buffer. With ~$30M oil headwind and ~$20M cyber cost flagged, the implied H2 margin must step down. If Q2 margin holds above 25%, a raise becomes likely in Q3.

Harry Potter dollar framing. Absence of revenue framing on the Q2 call would suggest the contribution is smaller than the announcement implied.

Cost savings cadence. $37M of $150M booked in Q1; watch whether Q2 keeps the run rate or front-loaded productivity tapers.

Sources

  1. Hasbro Q1 FY2026 press release / 8-K exhibit 99.1: https://www.sec.gov/Archives/edgar/data/46080/000004608026000029/exhibit991q12026.htm
  2. Hasbro Q1 FY2026 earnings conference call, prepared remarks (Chris Cocks, CEO; Gina Goetter, CFO/COO), May 20, 2026.

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