Updated version 3 - Hasbro raises annual revenue forecast driven by strong demand for digital games

Stock information was added in paragraph 2, comments from the earnings call were added in paragraphs 5 and 8, and analysts' comments were added in paragraph 6.

Anuja Bharat Mistry

Reuters, October 20 - Toymaker Hasbro (HAS.O) on Tuesday raised its full-year total revenue and digital gaming business forecasts, as its flagship trading card game Magic: The Gathering boosted demand ahead of the crucial holiday shopping season.

The Play-Doh toymaker’s digital gaming segment, including Monopoly Go!, has seen growth for seven consecutive quarters. Meanwhile, strong sales of collectibles related to Marvel, K-Pop The Witcher and Transformers also bolstered demand for traditional toys. Shares rose 5%.

Wizards of the Coast and the digital gaming division, which is the company's second-largest revenue contributor, grew 31% in the third quarter. Revenues in the consumer products segment increased by 4%.

Driven by the launch of new card sets such as The Hobbit and Universes Beyond, the Magic: The Gathering game series saw its quarterly revenue surpass $600 million for the first time, up 34% year-over-year.

Company executives now expect annual revenue growth in this segment to be between 16% and 18%, compared with a previous forecast in the low double-digit range.

James Zahn, editor-in-chief of The Toy Book magazine, said: “Despite inflationary pressures, Hasbro’s sustained momentum shows that exciting play and collecting experiences remain top priorities for American consumers.”

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Hasbro expects its fiscal 2026 revenue growth, at constant currency, to be between 7% and 9%, up from its earlier guidance of 5% to 7%.

Chief Financial Officer Gina Goetter said on the earnings call: “We continue to see quite strong resilience from consumers,” adding that the company entered the holiday sales season in good operational shape.

Hasbro has benefited from strategic partnerships and investments in digital games and product innovation, while rival Mattel (MAT.O) faces investor pressure to better monetize its intellectual property.

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Hasbro’s revenue for the quarter was $1.6 billion, and it doubled this year’s share buyback target to about $400 million. According to data compiled by LSEG, the figure surpassed analysts’ average forecast of $1.48 billion.

Adjusted earnings per share were $2.90, which also exceeded the $1.86 expectation. The company’s results included about $55 million in tariff refunds.

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