Hasbro (Hasbro (HAS)) shares jumped Tuesday after the toy and gaming company delivered a second-quarter earnings beat and raised its full-year outlook. The star of the show? Magic: The Gathering, which just had its best quarter ever — thanks in no small part to some Marvel superheroes.

Adjusted earnings came in at $1.28 per share, topping the analyst consensus estimate of $1.14. Revenue increased 16% year over year to $1.14 billion, ahead of expectations of $1.07 billion.

Wizards and Digital Gaming Lead the Way

Growth was led by a 27% jump in Wizards and Digital Gaming revenue, while Consumer Products revenue rose 5%. Entertainment revenue fell 20%, partially offsetting those gains.

Adjusted operating profit rose to $282.2 million from $247.1 million a year earlier. Adjusted operating margin edged down to 24.8% from 25.2%, reflecting higher tariff costs, increased royalty expenses tied to licensed entertainment products, and changes in product mix.

Hasbro ended the quarter with $880.5 million in cash and cash equivalents and inventories of $353.2 million. The company returned $133 million to shareholders through dividends and share repurchases during the quarter and used an additional $55 million to reduce debt. Hasbro also declared a quarterly cash dividend of 70 cents per share, payable Sept. 2.

Magic: The Gathering Hits a Milestone

CEO Chris Cocks said the company delivered another quarter of revenue growth, driven by Wizards of the Coast. He noted that Magic: The Gathering generated more than $500 million in quarterly revenue for the first time in its more than 30-year history, helped by the record launch of Marvel Super Heroes. “Upcoming releases and visibility into continued growth in 2027 support the franchise’s momentum,” Cocks said.

Hasbro Raises 2026 Outlook, Plans More Buybacks

CFO and COO Gina Goetter said broad-based strength across the business gave the company confidence to raise its full-year guidance. She added that Hasbro plans to continue executing its $1 billion share repurchase authorization while balancing investments in the business with returning capital to shareholders.

Hasbro raised its fiscal 2026 revenue guidance to a range of $4.936 billion to $5.03 billion from its prior forecast of $4.84 billion to $4.94 billion. The updated range compares with analysts' expectations of $4.999 billion. The company also increased its adjusted operating margin outlook to 25% to 26% from 24% to 25% previously and lifted its adjusted EBITDA forecast to $1.45 billion to $1.50 billion from $1.40 billion to $1.45 billion.

Management reiterated plans to continue investing in its core business, returning capital to shareholders, and reducing debt.

The Cyber Incident Hangover

Hasbro said unauthorized network access detected in late March disrupted business operations throughout the second quarter. The company has since restored normal order processing, shipping, and invoicing. The incident resulted in $11 million of direct incremental expenses during both the three- and six-month periods ended June 28, 2026, and reduced revenue by about $25 million during the quarter. Hasbro expects to incur additional related costs in future periods, including roughly $20 million in remediation expenses.

The company did not record any insurance recoveries during the quarter and said any future reimbursements may be recognized in periods different from the related expenses. Hasbro also said it now expects the cyber incident to delay about $40 million to $60 million of Consumer Products revenue from the second quarter into the second half of 2026.

HAS Price Action: Hasbro shares were up 3.81% at $84.70 during premarket trading on Tuesday.

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