Updated Version 2 - Driven by strong demand for digital games, Hasbro raises its annual revenue forecast

Analyst comments have been added in paragraph 7, and details have been adjusted throughout the article.

Reuters, October 20 - Hasbro HAS.O raised its annual revenue forecast on Tuesday, betting that digital games—including its flagship trading card game Magic: The Gathering—will maintain strong demand ahead of the crucial holiday shopping season.

The toy manufacturer, best known for Play-Doh, has seen continuous growth in its digital games segment—including Monopoly Go!—for the past seven quarters; meanwhile, higher sales of collectibles related to Marvel, K-Pop The Witcher, and Transformers have also boosted demand for traditional toys.

Its Wizards of the Coast and Digital Gaming segment—which accounted for 51% of the company's revenue in fiscal year 2025—grew by 31% in the third quarter. Revenue in the Consumer Products segment rose 4% compared to the previous year.

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Hasbro expects its fiscal year 2026 revenue growth rate at constant currency to be between 7% and 9%, higher than the previous estimate of 5% to 7%.

The company has benefited from investments in digital gaming, product innovation among core brands, and strategic partnerships, while its rival Mattel MAT.O is facing investor pressure to better commercialize its intellectual property following the unexpected departure of long-time CEO Ynon Kreiz.

Hasbro shares rose about 1% in premarket trading. So far this year, its stock performance has outpaced Mattel.

eMarketer analyst Zak Stambor said Hasbro’s investment strategy “is paying off,” adding that the company is well positioned for the upcoming holiday shopping season.

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Hasbro’s Magic: The Gathering series reported quarterly revenue surpassing $600 million for the first time, up 34% year-over-year. The series also benefited from the launch of new products such as Secrets of Strixhaven and Marvel Super Heroes.

According to data compiled by London Stock Exchange Group (LSEG), Hasbro’s revenue for the quarter hit $1.6 billion, and the company also said it doubled its share repurchase target; this figure exceeded analysts’ average estimate of $1.48 billion.

Adjusted earnings per share were $2.90, also above the expected $1.86. Results included about $55 million in tariff rebates.

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