Hasbro stock gains on strong fourth-quarter beat

Investing.com -- Hasbro shares climbed about 2% in premarket trading Tuesday after the toy company reported fourth-quarter earnings and revenue that topped expectations.

The company posted Q4 EPS of $1.51, well above the $0.95 analysts had expected. Revenue surged 31% year-over-year to $1.45 billion, compared with the $1.26 billion consensus estimate.

Adjusted operating profit reached $315 million, an increase of $202 million from the prior year period. Adjusted operating margin expanded to 21.8%, marking an improvement of roughly 12 percentage points year over year.

“I am proud of the results our team delivered in 2025 and the success of our Playing to Win strategy,” said Chris Cocks, CEO of Hasbro. “We returned the company to growth, engaged one billion fans, secured new partnerships, and made progress in our evolution into a digital-first play and IP company. We expect that momentum to carry into 2026.”

Looking ahead to 2026, Hasbro expects total revenue to rise 3% to 5% in constant currency. The company is guiding for an adjusted operating margin of 24% to 25% and adjusted EBITDA in the range of $1.40 billion to $1.45 billion for the full year.

On capital allocation, Hasbro said it plans to continue investing in its core business while returning cash to shareholders through dividends and share repurchases. The board has approved a new share repurchase authorization of up to $1.0 billion, replacing the prior 2018 program.

The company also reiterated its intention to further reduce debt as part of its 2026 priorities.

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