Wizards of the Coast Drives Growth
Margins and Earnings
Hasbro’s adjusted operating profit for the quarter rose to $314.8 million, up from $112.7 million in the prior year period. The adjusted operating margin improved significantly to 21.8%, an approximate 12-point jump compared to the fourth quarter of 2024, driven by a favorable business mix and cost-saving initiatives.
Adjusted net earnings reached $1.51 per diluted share, comfortably beating the $0.46 reported in the same period last year.
In the Consumer Products segment, revenue grew 7% to $800 million, led by brands such as PEPPA PIG, TRANSFORMERS, and Marvel. This growth helped offset a 5% decline in the company’s smaller Entertainment division.
Cash Return and 2026 Outlook
The company’s board authorized a new $1.0 billion share repurchase program, replacing its previous 2018 authorization. Hasbro also declared a quarterly cash dividend of $0.70 per share.
Hasbro moved to strengthen its balance sheet during the quarter, spending approximately $105 million on debt reduction.
Looking ahead to 2026, Hasbro expects total revenue to grow between 3% and 5% on a constant currency basis. The company is forecasting an adjusted operating margin of 24% to 25% and adjusted EBITDA in the range of $1.40 billion to $1.45 billion.