Hasbro expects its Consumer Products adjusted operating margin to fall in the fourth quarter after tariff refunds lifted third-quarter results, tempering the stronger 2026 revenue outlook it announced Oct. 20.
The U.S. toy and game maker now projects revenue growth of 7% to 9% in constant currency for the year, up from its previous range of 5% to 7%. Revenue rose 15% to $1.5953 billion in the fiscal quarter ended Sept. 27. The higher forecast was reported in EconoTimes' earlier account of the results.
Magic: The Gathering generated $616.1 million in third-quarter revenue, up 34% and above $600 million for the first time in a quarter. Revenue in Hasbro's Wizards of the Coast and Digital Gaming segment reached $747.2 million, a 31% increase. Tabletop gaming accounted for $613.1 million, up 39%, while digital and licensed gaming brought in $134.1 million, up 3%.
Chief Financial Officer and Chief Operating Officer Gina Goetter said roughly $40 million in Magic revenue recorded in the third quarter had previously been expected in the fourth. Shipments of Reality Fracture accounted for most of the shift, which also included backlist sales. Those early bookings reduce the revenue Hasbro had anticipated from Magic in the final quarter.
Consumer Products generated $827.9 million in revenue, a 4% increase. Hasbro identified Marvel, KPop Demon Hunters and Transformers as contributors. The division accounted for $48 million of approximately $55 million in tariff refunds recognized companywide during the quarter.
Goetter expects the division's adjusted operating margin to decline from its third-quarter level. Hasbro said it had recognized the full refund benefit in the third quarter, while promotions and shipping are expected to weigh more heavily on the fourth-quarter mix. For Consumer Products, Hasbro said productivity, lower distribution costs and a favorable sales mix more than offset higher input costs in the third quarter.
Hasbro raised its full-year adjusted operating margin forecast to 27% to 28%, from 25% to 26%. It also doubled its 2026 share repurchase target to $400 million after buying back $149 million during the first nine months of the year. A Star Trek release is scheduled for November, with fourth-quarter results to follow.
