Hasbro Raised Its Outlook on a Card Game, Not the Toy Aisle

Hasbro reported second quarter results on July 21, with revenue up 16% year over year to $1.14 billion and adjusted earnings of $1.28 per diluted share, ahead of consensus. On the strength of the first half, the company raised its full-year outlook: it now expects 2026 revenue growth of 5% to 7% in constant currency, up from 3% to 5%, with adjusted operating margin of 25% to 26% and adjusted EBITDA between $1.45 billion and $1.5 billion. On the earnings call, the company also raised its 2026 share repurchase target from $100 million to at least $200 million against a $1 billion authorization.

The Raise Rests on Wizards, Not the Toy Aisle

The segment mix tells the real story. Wizards of the Coast and Digital Gaming grew 27%, Consumer Products, the traditional toy business, grew 5%, and Entertainment declined 20% on deal timing. Inside Wizards, Magic: The Gathering grew 32% in the quarter and topped $500 million in quarterly revenue for the first time in the franchise’s history. CEO Chris Cocks told analysts Magic is “off to a ripping start,” up more than 34% for the first half, and the company raised its full-year Wizards outlook on that strength.

The driver was the Marvel Super Heroes set, which Hasbro said set records for day one and month one revenue and became the fastest Magic set to reach $300 million, with solid reorders and sell-through behind the launch numbers. That is licensed IP layered onto the Magic system, and the model is now the plan: the company outlined a 2027 slate balancing three first-party sets against three sets under its Universes Beyond licensed banner.

For readers, this is a category signal before it is a Hasbro story. Trading cards and collectibles are live mass-retail categories, and Magic just posted the strongest revenue quarter in its 30-plus year history on licensed-IP releases. Third-party sellers in collectibles are looking at a category with verified momentum. Suppliers competing for general merchandise shelf and feature space are looking at a category likely to keep earning it.

The Toy Recovery Is Booked for the Holidays

Consumer Products grew 5% in the quarter and 2% for the first half, with Cocks citing momentum across Peppa Pig, Star Wars, Marvel, Dungeons & Dragons, and Hasbro Gaming. One forward item for the toy aisle landed on the call as well: a multi-year licensing agreement with Nintendo for The Legend of Zelda, commencing in 2027.

The quarter’s wrinkle is what that growth overcame. Hasbro said unauthorized network access detected in late March disrupted business operations throughout the second quarter, including order processing, shipping, and invoicing, all of which have since been restored to normal. The recovery plan is a holiday story: the company said its raised guidance assumes recapturing revenue lost to the disruption through holiday innovation and its entertainment slate, and its own annual report shows why the math works that way, with the second half accounting for roughly 60% of full-year revenue in 2025 and the toy business historically earning a disproportionate share of its year in the third and fourth quarters. Hasbro also acknowledged headwinds from oil and trade policy, having recorded roughly $8.3 million in tariff costs in its first quarter filing, and raised guidance anyway.

Hasbro’s 2025 annual report lists Walmart and Amazon as its largest customers, together representing 20% of consolidated global net revenues, which makes the shape of this report a planning input rather than a spectator sport. For 1P suppliers, a major vendor entering the holiday setup with raised guidance, restored operations, and revenue it explicitly intends to recapture in the back half points to an aggressive holiday posture in toys, with the competitive implications that carries for adjacent space and features. For 3P sellers, the actionable read is the collectibles demand curve, which is category-level and does not depend on Hasbro’s shelf.

The discipline in the raise is worth registering on the way out. CFO and COO Gina Goetter told analysts the updated guidance largely passes through the first-half upside while leaving second-half assumptions for Wizards largely unchanged. The record is banked; the holiday half that decides the toy story, and roughly 60% of the revenue year, is still ahead.

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