Why Hasbro Stock Won the Game on Thursday

Investors in Hasbro (NASDAQ: HAS) had reason to celebrate on April 25, 2025, as the toy and gaming giant’s shares surged nearly 19% following the release of its first-quarter 2025 earnings. The rally wasn’t merely a blip—it was a reflection of a strategic transformation taking hold. Let’s unpack the forces behind this victory.

The Financial Engine Driving the Rally

At the heart of Hasbro’s surge was its 17% year-over-year revenue jump to $887.1 million, far exceeding analyst forecasts. But the real fireworks came from its Wizards of the Coast and Digital Gaming segment, which skyrocketed 46% to $462.1 million. Flagship franchises like MAGIC: THE GATHERING (up 46% to $346.3 million) and DUNGEONS & DRAGONS (a quiet powerhouse) fueled this growth.

The segment’s operating profit surged 87% to $230 million, with margins hitting 49.8%—a staggering 11-point improvement from 2024. Even classic brands like Monopoly, now bolstered by the Monopoly Go! app, contributed $39 million to Q1 revenue.

Profitability metrics reinforced the story: adjusted operating profit rose 5.5 points to 25.1%, while adjusted diluted EPS hit $1.04, crushing the $0.67 consensus. Hasbro isn’t just selling toys—it’s building a high-margin gaming empire.

Strategic Shift to High-Margin Gaming

CEO Chris Cocks and CFO Gina Goetter deserve credit for pivoting toward gaming. The “Playing to Win” strategy—centered on licensing, digital expansion, and partnerships like its Disney agreement—is paying off. By targeting $1 billion in cost savings (with $50 million already slashed in Q1), Hasbro is neutralizing tariff headwinds and freeing capital for growth.

Analysts are taking notice. Citi upgraded Hasbro to Buy with a $72 price target, citing “stellar momentum” at Wizards of the Coast. BofA went even further, raising its target to $85, while Roth Capital highlighted tariff mitigation and accelerated savings. The average analyst target now sits at $72.30, signaling bullish sentiment.

Navigating Tariffs and Future Risks

Hasbro isn’t immune to macroeconomic pressures. It warned that tariff uncertainties could cloud the full-year outlook. However, its asset-light model—reliant on licensing and digital revenue—buffers against supply chain volatility. The $1 billion cost-savings goal and $98 million returned to shareholders via dividends further underscore financial discipline.

Conclusion: A Winning Hand for Hasbro?

The 19% stock surge on April 25 wasn’t a fluke—it was a validation of Hasbro’s pivot to gaming. With Wizards of the Coast revenue up 46%, margins expanding by 5.5 points, and analyst targets rising, the company is proving it can grow even in a challenging environment.

While tariffs remain a risk, Hasbro’s focus on high-margin IP (like Magic: The Gathering’s 51% tabletop revenue growth) and its disciplined capital allocation make it a resilient bet. The stock’s $72.30 average target and upgrades from top analysts suggest investors are pricing in long-term success.

For now, Hasbro has won the game. But as every gamer knows, the next move matters most.