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Hasbro (HAS) is trading sharply higher following its 4Q25 earnings report this morning, as the toy and gaming giant delivered a substantial beat on both EPS and revenue. Revenue growth accelerated to 31% -- the company's strongest quarterly growth in over four years -- signaling that HAS is firmly back on a growth trajectory. Management attributed the performance to the "Playing to Win" strategic roadmap, which has successfully transitioned the company from a turnaround phase into a new era of profitability and digital-first play.

• Q4 revenue increased 31% yr/yr to $1.5 bln, driven by exceptional momentum in the gaming-led business model. Adjusted EPS reached $1.51, capping a year of accelerating operational discipline.
• The primary growth engine was the Wizards of the Coast and Digital Gaming segment, which saw revenue surge 86% to $630 mln in the quarter. This was driven by a 141% explosion in Magic: The Gathering sales, fueled by the massive success of the Avatar: The Last Airbender and Final Fantasy holiday releases.
• Consumer Products revenue grew 7% to $800 mln, supported by the strength of Hasbro Gaming and Marvel brands. Conversely, Entertainment revenue was down 5% for the period, though the segment remains a key part of the "asset-led" strategy with approximately 50% operating margins expected for 2026.
• A major future growth catalyst was revealed with the announcement of a multi-year licensing partnership with Warner Bros. Discovery (WBD). Starting in late 2026, HAS will become the global primary toy licensee for the World of Harry Potter and the upcoming HBO Original Harry Potter series, a move expected to significantly scale the company's multi-generational appeal.
• Demonstrating confidence in its cash flow durability, the board has authorized a new $1.0 bln share repurchase program alongside its continued commitment to the quarterly dividend.
• For 2026, HAS guided for consolidated revenue growth of 3-5% on a constant currency basis. The company expects to maintain high profitability with adjusted operating margins of 24-25% and adjusted EBITDA in the range of $1.40-$1.45 bln.

Briefing.com Analyst Insight

HAS's 4Q25 results suggest the "Playing to Win" strategy is delivering exactly what it promised: a more efficient, higher-margin business anchored by world-class IP. The 86% surge in Wizards and Digital Gaming is particularly impressive, as it validates the "Universes Beyond" strategy of pairing Magic’s core mechanics with blockbuster collaborations like Avatar. Adding the Harry Potter franchise to the portfolio starting in 2027 provides a clear long-term growth vector that should help HAS capture significant market share in the collectibles and role-play categories. While the 2026 revenue guidance is measured, the record 24%+ operating margins and $1 bln buyback authorization signal a company that has successfully optimized its cost structure and is now ready to reward shareholders.