HAS US S&P 500Russell 1000 Earnings call · transcribed from the recording
Hasbro (HAS) · Q3 2026 results and valuation
Share price: $124.02 · 2026-11-11
Hasbro is a game, intellectual property, and toy company. It provides physical and digital games, toys, and licensed consumer products to children, families, and fans globally. Source: 10-K annual report (2026-02-25)
Results Q3 2026 vs Q2 2026 · previous quarter · published 20 Oct 2026 and 21 Jul 2026
Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
—
Figures not yet filed
Outlook given
2 · How management spoke
Typical
More upbeat than 51% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Hasbro's Magic revenue topped $600 million for the first time, growing 34% year over year and beating the record set last quarter.
Valuation
Is Hasbro undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-28), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −7.0% growth a year (3-year revenue growth), the model's fair value is $24.54 a share — the stock trades 405% above it. Today's price assumes 10.1% growth a year.
Current price
$124.02
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.1% for 10 yrs
Fair value / share
$24.54
Buy below
$18.40
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
-
Guidance
The company updated its guidance to expect consolidated revenue growth of 7 to 9 percent year over year and adjusted EBITDA between $1.575 and $1.625 billion.
-
Key theme
Entertainment segment revenue is expected to grow 3-5% with operating margins of approximately 65%.
Source quote
“Entertainment segment revenue is now expected to grow 3-5%, with operating margins of approximately 65%.”
-
Figure
Revenue grew 15% and adjusted operating profit improved 52% due to growth across all three segments.
Source quote
“Revenue grew 15% and adjusted operating profit improved 52%, with growth across all three of our segments.”
-
Figure
Magic revenue topped $600 million for the first time, growing 34% versus last year and beating the record set last quarter.
Source quote
“Magic revenue topped $600 million for the first time, growing 34% versus last year and beating the record we set last quarter.”
-
Figure
Adjusted operating profit rose 52% to $541 million with an operating margin of 33.9%, up 830 basis points due to favorable business mix, cost productivity, and tariff refunds.
Source quote
“Adjusted operating profit was $541 million, plus 52%, with an adjusted operating margin of 33.9%, up 830 basis points on favorable business mix, cost productivity, and the benefit of tariff refunds, which I'll detail in a moment.”
4 more
-
Figure
Segment revenue grew 31% to $747 million, with Magic growing 34% to $616 million due to the release of The Hobbit, Reality Fracture, and backlist performance.
Source quote
“Segment revenue grew 31% to $747 million, with Magic growing 34% to $616 million behind the release of The Hobbit, Reality Fracture, and solid backlist performance.”
-
Figure
Magic Revenue reached $1.6 billion through nine months, up 34%.
Source quote
“Through nine months, Magic Revenue of $1.6 billion is up 34%, and the ecosystem remains healthy across both new releases and backlist.”
-
Guidance
The company increased its share repurchase target for the year from $200 million to $400 million based on the continued strength of its cash flow.
-
Guidance
The company expects the segment to continue operating at a margin profile in the high 30s and low 40% range.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Revenue grew 15% and adjusted operating profit improved 52%, with growth across all three of our segments.”
“First, we continue to invest in the business behind our highest return growth opportunities led by wizards, digital gaming, and licensing.”
“Hasbro delivered another strong quarter with record profitability.”
Full figures
Q3 2026 figures are not available yet: the company files its quarterly report (10-Q) a few weeks after the call. This page compares what management said; the figures are added when the report is filed.
Topics
Most discussed now
- This disclosure puts together the licensing revenue for digital gaming, including Monopoly Go, as well as Hasbro's licensed consumer…
- They go and buy more sets and not just the Star Trek set, they go and buy Reality Fracture.
- Entertainment segment revenue was $20 million, up 9%, and adjusted operating profit of $18 million contributed at a 91.1% margin,...
- From a balance sheet and cash flow perspective, through the first nine months, Hasbro generated $907 million in operating cash...
- Those are just the ones that qualify into the Wizards Play Network...
Faded since Q2 2026
- Fading Consumer products revenue grew 5% to $463 million, with the North America business up 17% as Hasbro laps the impact...
- Fading Strong underlying growth in distribution
- Fading I continue to believe there's a lot of upside in digital as Hasbro invests in new digital initiatives to expand...
- Fading I definitely think you're going to see us shifting more and more to those lower-cost partners and evolving Hasbro's studio...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Other events · SEC 8-K
Hasbro, Inc. announced the appointment of Dan Ayoub as President of Wizards of the Coast and Hasbro Digital Games, effective November 2, 2026.
- Results of operations · SEC 8-K
Hasbro reported third-quarter 2026 revenue increased 15% year-over-year, with Magic: The Gathering exceeding $600 million in quarterly revenue for the first time.
- Director or officer change · SEC 8-K
John Hight will transition from President of Wizards of the Coast to an Advisor role starting September 2, 2026, with a base salary of $800,000.
- Results of operations · SEC 8-K
Hasbro reported second-quarter 2026 revenue increased 16% year-over-year, with operating profit of $253 million and adjusted operating profit of $282 million, up 14% compared to the previous year.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Hasbro reported first-quarter 2026 revenue up 13% year-over-year, with operating profit of $270 million, an increase of 58% compared to the previous year.
- Results of operations · SEC 8-K
Hasbro reported preliminary first-quarter 2026 revenue of $970 million to $985 million, up 9-11% year-over-year, and operating profit of $235 million to $245 million, up 38-44% year-over-year.
- Other events · SEC 8-K
Hasbro, Inc. reported an unauthorized network access on March 28, 2026, and is currently conducting an investigation and implementing business continuity plans to manage potential impacts.