Hasbro (HAS) Q1 Earnings Top Estimates, But Cost Worries Sink Shares

Hasbro Inc. (HAS) reported first-quarter revenue that beat analyst forecasts on May 27, 2026, fueled by record engagement in its Magic: The Gathering franchise. The shares, however, dropped from $97.18 to $88.20 after management highlighted persistent cost pressures and operational disruptions, overshadowing the top-line strength. CEO Chris Cocks attributed growth to the Wizards of the Coast segment, where Magic: The Gathering saw record sales. CFO Gina Goetter noted that cost-transformation initiatives delivered $37 million in gross savings, which supported margin expansion, but those benefits were partly offset by higher royalty expenses and incremental tariffs. Consumer products also gained share in gamified, entertainment-driven categories. Analysts on the call pressed management on the pace of consumer products recovery following a cyber incident, margin trajectory amid input cost pressures, and the sustainability of Magic: The Gathering momentum from upcoming releases.