Hasbro Lifts Annual Forecast on Strong 'Magic: The Gathering' and Digital Game Sales

Hasbro Inc. on Tuesday raised its full-year revenue and profit forecasts, citing robust performance in its digital gaming division and sustained demand for its popular fantasy franchise, *Magic: The Gathering*.

The company's shares traded marginally higher in premarket hours following the announcement, which came alongside second-quarter results that surpassed analyst expectations.

Upgraded Full-Year Guidance

Hasbro upgraded its financial outlook for the year, signaling confidence despite what it called an uncertain consumer spending environment. The company now expects:

• Annual revenue to grow in the range of 5% to 7%, an increase from its prior forecast of 3% to 5%.
• Annual adjusted core profit between $1.45 billion and $1.50 billion, up from the previous outlook of $1.40 billion to $1.45 billion.

This improved forecast is supported by a strong second-quarter performance and continued momentum in key brands. The company said stronger spending by higher-income consumers helped to offset demand pressure from lower-income households impacted by inflation.

'Magic' Fuels Digital Gaming Surge

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The primary driver of Hasbro's strong results was its Wizards of the Coast and Digital Gaming unit, which reported a 27% increase in revenue. This growth, largely fueled by the flagship *Magic: The Gathering* franchise, marks a significant acceleration from the 16% growth recorded in the same period last year.

"With strong indications for our remaining releases and line of sight to continued growth in 2027, the Magic flywheel is firing on all cylinders," CEO Chris Cocks said in a statement. Some analysts have questioned, however, whether the franchise can maintain this pace against tougher comparisons in the second half of the year.

Second-Quarter Financials

For the second quarter, Hasbro's revenue rose 16% to $1.14 billion, topping analysts’ consensus estimate of $1.07 billion, according to data from LSEG. The company’s quarterly adjusted profit was $1.28 per share, which was a 1.5% decrease from the year-ago period but still beat the analyst estimate of $1.14 per share.

Hasbro also disclosed that it incurred $11 million in incremental expenses during the quarter related to a cybersecurity incident that occurred in March and said it expects additional related costs in the future.