PAWTUCKET, R.I. — Hasbro delivered a strong second quarter in 2026, reporting 16% year-over-year revenue growth despite an estimated $25 million revenue impact from an unauthorized network access incident that disrupted operations throughout the quarter.
The company credited record performances from its gaming business, particularly Magic: The Gathering, for helping offset the effects of the cyberattack while giving management confidence to raise its financial guidance for the remainder of the year.
According to Hasbro’s latest earnings report, the company has restored order processing, shipping, and invoicing to pre-incident levels following the cyberattack identified in late March. However, executives said additional costs related to the incident are expected in future periods.
Cyberattack reduced revenue but failed to derail Hasbro’s strong quarter
Hasbro revealed that the unauthorized network access caused disruptions across its business during the second quarter, resulting in approximately $11 million in direct incremental expenses and an estimated $25 million hit to revenue.
The company also confirmed it had not recognized any insurance recoveries related to the incident during the reporting period. Despite those setbacks, Hasbro still posted impressive financial growth across several of its core businesses.
Overall revenue increased 16% year over year, while adjusted operating profit climbed 14% to $282 million. Reported earnings came in at $1.12 per diluted share, with adjusted earnings reaching $1.28 per diluted share. During the quarter, Hasbro also returned $133 million to shareholders through dividends and share repurchases while paying down $55 million in debt.
Hasbro Chief Executive Officer Chris Cocks credited the company’s gaming division for leading another successful quarter.
“Hasbro posted another quarter of topline growth, led by Wizards of the Coast. Magic: The Gathering eclipsed $500 million in quarterly revenue for the first time in its 30-plus year history, led by the record-breaking debut of Marvel Super Heroes. With strong indications for our remaining releases and line of sight to continued growth in 2027, the Magic flywheel is firing on all cylinders.”
Magic: The Gathering and gaming division drive growth
The biggest contributor to Hasbro’s quarterly performance was the Wizards of the Coast and Digital Gaming segment, which recorded 27% revenue growth. Magic: The Gathering alone grew 32% year over year, driven by strong demand for Secrets of Strixhaven and the Marvel Super Heroes release.
Meanwhile, Monopoly GO! generated $44 million in revenue during the quarter, highlighting the continued strength of Hasbro’s digital gaming strategy.
Consumer Products revenue also increased 5% despite the cyberattack disrupting operations. Sales were supported by licensed entertainment products tied to Star Wars: The Mandalorian and Grogu, along with continued momentum across the company’s GEM2 product categories. The Entertainment division, however, saw revenue decline 20%, which Hasbro attributed primarily to the timing of licensing and content deals.
Hasbro raises 2026 outlook following strong Q2 performance
The company’s broad-based growth prompted management to increase its expectations for the full year. Hasbro now forecasts 5% to 7% revenue growth in constant currency, compared to its previous guidance of 3% to 5%. The company also raised its adjusted operating margin outlook to 25%–26% and now expects adjusted EBITDA between $1.45 billion and $1.50 billion.
Chief Financial Officer and Chief Operating Officer Gina Goetter said the company’s latest results reinforced confidence in its long-term strategy.
“This quarter’s broad-based strength across the business gives us the conviction to raise our full-year guidance. Moving forward we are leaning into our $1B share repurchase authorization as we continue to balance investment in the business with returning cash to shareholders.”
Hasbro’s results suggest that its expanding gaming portfolio continues to offset challenges in other areas of the business. With record-breaking performance from Magic: The Gathering, steady growth in digital gaming, and improved financial guidance despite a costly cyberattack, the company enters the second half of 2026 with strong momentum.
