Hasbro Shares Surge on Strong Quarterly Performance and Strategic Confidence

Hasbro concluded its previous fiscal year with a robust fourth quarter, delivering results that significantly outpaced market expectations. The company's performance was bolstered by exceptional demand in its Wizards of the Coast division, leading to a substantial revenue increase. Management's confidence in the future is further underscored by the authorization of a new multi-billion dollar share repurchase initiative.

• Q4 Earnings Per Share: $1.51 (Consensus Estimate: $0.97 – $0.99)
• Q4 Revenue: $1.45 billion (a 31.3% year-over-year increase)
• Dividend: $0.70 per share declared for the current quarter
• Share Buyback: New $1.0 billion program approved

The company's 31% revenue growth in the final quarter far exceeded analyst projections of approximately $1.26 billion. This surge was primarily fueled by the ongoing success of the Magic: The Gathering franchise within the Wizards of the Coast segment. The results demonstrate Hasbro's effective monetization of its intellectual property portfolio, translating it into stronger cash generation.

CFO Gina Goetter attributed the enhanced profitability not only to organic growth but also to rigorous cost-saving measures and improved operational execution. The company's "Playing to Win" strategy, which CEO Chris Cocks confirmed will continue through 2026, appears to be gaining significant traction.

Should investors sell immediately? Or is it worth buying Hasbro?

Management Provides Upbeat Guidance for 2026

Looking ahead to the full 2026 fiscal year, Hasbro's leadership has provided an optimistic outlook. The company forecasts currency-adjusted revenue growth in the range of 3% to 5%. Its adjusted operating margin is expected to land between 24% and 25%, while management is targeting an adjusted EBITDA of $1.40 billion to $1.45 billion.

Beyond core business investments and continued debt reduction, shareholder returns remain a key priority. The newly authorized $1 billion stock repurchase program replaces the previous authorization and highlights the firm's solid liquidity position. The declared quarterly dividend of $0.70 per share will be paid on March 4, 2026, to shareholders of record as of February 18, 2026.