Why Hasbro Stock Jumped Today

On Tuesday, Hasbro's stock surged more than 11% following the toymaker's announcement of impressive sales and profit growth. The company's fiscal third quarter revenue jumped 15% year-over-year to $1.6 billion, ending on September 27. This surge was largely driven by a 34% increase in sales from Magic: The Gathering, a beloved collectible trading card game featuring wizards and other fantasy characters.

Hasbro CEO Chris Cocks highlighted that the company had achieved four consecutive quarters of double-digit revenue growth, with Magic: The Gathering reaching a historic milestone of $600 million in quarterly revenue for the first time. The sales gains, coupled with approximately $55 million in tariff refunds, contributed to a 52% increase in Hasbro's adjusted operating profit to $541 million.

Moreover, the game maker's adjusted earnings per share, aided by stock buybacks, climbed 73% to $2.90. Looking ahead, Hasbro anticipates full-year revenue growth of 7% to 9% in constant currency for fiscal 2026, with an adjusted operating margin of 27% to 28%. This strong operational and financial performance is enabling the company to bolster its balance sheet by reducing debt, investing in growth initiatives, and returning cash to shareholders through dividends.

Additionally, Hasbro plans to double the size of its buyback program, as disclosed by CFO and COO Gina Goetter during a conference call with analysts. The company is increasing its share repurchase target for the year from $200 million to $400 million.