Toy and entertainment company Hasbro (NASDAQ: HAS) beat Wall Street’s revenue expectations in Q1 CY2026, with sales up 12.7% year on year to $1 billion. Its non-GAAP profit of $1.47 per share was 29.7% above analysts’ consensus estimates.
Is now the time to buy Hasbro? Find out by accessing our full research report, it’s free.
Hasbro (HAS) Q1 CY2026 Highlights:
- Revenue: $1 billion vs analyst estimates of $963.9 million (12.7% year-on-year growth, 3.8% beat)
- Adjusted EPS: $1.47 vs analyst estimates of $1.13 (29.7% beat)
- Adjusted EBITDA: $323.8 million vs analyst estimates of $298.9 million (32.4% margin, 8.3% beat)
- EBITDA guidance for the full year is $1.43 billion at the midpoint, below analyst estimates of $1.45 billion
- Operating Margin: 27%, up from 19.2% in the same quarter last year
- Free Cash Flow Margin: 28.8%, up from 10.7% in the same quarter last year
- Market Capitalization: $13.75 billion
Company Overview
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Hasbro struggled to consistently generate demand over the last five years as its sales dropped at a 2.5% annual rate. This wasn’t a great result and is a sign of poor business quality.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Hasbro’s revenue over the last two years was flat, sugggesting its demand was weak but stabilized after its initial drop. 
This quarter, Hasbro reported year-on-year revenue growth of 12.7%, and its $1 billion of revenue exceeded Wall Street’s estimates by 3.8%.
Looking ahead, sell-side analysts expect revenue to grow 5.3% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
Operating Margin
Hasbro’s operating margin has been trending down over the last 12 months and averaged 9.4% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
In Q1, Hasbro generated an operating margin profit margin of 27%, up 7.8 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Hasbro’s EPS grew at 7.4% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 2.5% annualized revenue declines and tells us management adapted its cost structure in response to a challenging demand environment.
In Q1, Hasbro reported adjusted EPS of $1.47, up from $1.04 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Hasbro’s full-year EPS to stay about the same, moving from $5.96 to $5.95.
Key Takeaways from Hasbro’s Q1 Results
It was good to see Hasbro beat analysts’ EPS expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its full-year EBITDA guidance missed. Overall, we think this was a decent quarter but guidance could weigh on shares. The stock remained flat at $97.81 immediately after reporting.
Sure, Hasbro had a solid quarter, but if we look at the bigger picture, is this stock a buy? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
