‘Magic: The Gathering’ generated more than $500 million in quarterly revenue for the first time in its more than 30-year history
Hasbro posted strong second quarter earnings yesterday, driven by record-breaking demand for its Magic: The Gathering franchise, and raised its full-year 2026 financial outlook.
The toymaker reported a 16% increase in quarterly revenue, led by a 27% jump in its Wizards of the Coast and Digital Gaming division.
Magic generated more than $500 million in quarterly revenue for the first time in its more than 30-year history, boosted by the successful launch of the Marvel Super Heroes-themed set.
A Star Trek-themed expansion is scheduled for November.
The company said the franchise continues to attract new players while bringing back former fans. Digital and licensed gaming also grew, with Monopoly Go! contributing $44 million in revenue.
Earnings and shareholder returns
Hasbro earned $1.12 per diluted share, while adjusted earnings came in at $1.28 per share. It returned $133 million to shareholders through dividends and share buybacks and reduced its debt by $55 million.
Despite a 20% decline in entertainment revenue and costs related to a recent cyberattack, Hasbro now expects revenue to grow 5% to 7% in 2026, supported by continued momentum in its gaming business and confidence in its upcoming product lineup. The company also raised its adjusted EBITDA outlook to between $1.45 billion and $1.50 billion.
While Hasbro benefited from stronger spending by higher-income consumers, it remains cautious about the crucial holiday shopping season, noting that consumer demand could still shift.
The company also said a cybersecurity incident in March added $11 million in costs during the quarter, with additional related expenses expected later this year.