Hasbro shares surged 11.2% on Tuesday after the toy and gaming giant reported that Magic: The Gathering generated more than $600 million in revenue in a single quarter for the first time, a milestone that powered a broader beat. According to the Associated Press, the company also raised its full-year revenue and digital gaming forecasts, signaling that its games business is accelerating.
The trading card game has become the crown jewel of Hasbro's portfolio, and the record quarter underscores how deeply the decades-old franchise continues to resonate with players. Reuters reported that the strong showing in digital gaming, alongside the card business, helped the company lift its full-year outlook, giving investors fresh confidence in a turnaround strategy that has leaned heavily on its most profitable franchises.
Wall Street welcomed the update after a stretch in which investors questioned whether Hasbro could keep its growth engine running. The stock's double-digit gain on Tuesday made it one of the day's biggest winners in the S&P 500, joining Equifax and 3M among the earnings-day standouts. Analysts noted that the combination of an earnings beat and raised guidance — rather than just a beat alone — was what set Hasbro apart from other reporters this week.
The results land in a busy earnings week in which investors are punishing companies that beat forecasts but disappoint on the outlook. Hasbro's decision to lift its forecasts for both overall revenue and digital gaming revenue did exactly what the market wanted to hear. With the holiday season approaching, the company will be looking to its gaming lineup and its licensing businesses to carry the momentum into the fourth quarter.