Hasbro (NASDAQ:HAS) shares jumped more than 5% in early trading Tuesday after the toy and gaming giant reported fourth-quarter results that blew past Wall Street estimates.
Driven by a "powerhouse" performance from Magic: The Gathering and its digital gaming suite, the Pawtucket-based company posted adjusted earnings of $1.51 per share, nearly 60% higher than the $0.95 expected by analysts.
Revenue for the quarter surged 31% year-over-year to $1.45 billion, easily clearing the $1.26 billion consensus.
The quarter was defined by the explosive growth of the Wizards of the Coast and Digital Gaming segment, where revenue skyrocketed 86% to $630.4 million.
This was anchored by the strongest year in the history of Magic: The Gathering, which saw its annual revenue climb 59% thanks to successful high-profile collaborations and the Q4 launch of the Avatar: The Last Airbender set.
Meanwhile, the company’s digital footprint was bolstered by Monopoly Go!, which contributed $168 million in full-year revenue through licensed digital gaming.
Demonstrating confidence in its cash-flow generation, Hasbro’s board authorized a new $1 billion share repurchase program and reiterated its quarterly dividend of $0.70 per share.
Looking ahead to 2026, Hasbro expects total revenue to rise 3% to 5% on a constant-currency basis, with adjusted EBITDA projected between $1.40 billion and $1.45 billion.