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Hasbro Beats Q1 Estimates as Magic Sales Surge and a Cyber Breach Delays Revenue

Reaffirmed full-year guidance reflects confidence in franchise-led growth while the company absorbs a late-March network intrusion that will shift revenue and add remediation costs.

Overview

  • Hasbro reported roughly $1.0 billion in first-quarter revenue and $1.47 in adjusted EPS, topping analyst estimates on strength in Wizards of the Coast and digital gaming.
  • Wizards and Digital Gaming revenue rose about 26% with Magic: The Gathering delivering record sales and helping lift segment margins above 50%.
  • The company disclosed May 20 that a late-March cybersecurity intrusion delayed some shipments and will likely move about $40 million to $60 million of consumer-products revenue into the back half of 2026.
  • Hasbro expects roughly $20 million in remediation operating expenses, recorded $8.3 million in U.S. import tariff costs for the quarter, and is pursuing an estimated $50 million tariff refund that is not included in guidance.
  • Management reaffirmed full-year targets for 3%–5% constant-currency revenue growth and $1.40–$1.45 billion in adjusted EBITDA while continuing debt reduction and shareholder returns, and the stock fell about 8% on the update.