Hasbro expects March cyberattack to impact second-quarter revenue

Hasbro, in a financial update released Thursday, said it expects to report some impact to second-quarter revenue and operating profit following a March cyberattack, which led to some delays in order processing, shipping and invoicing.

The now-contained attack resulted in certain systems being taken offline. Hasbro said it is making progress toward a full restoration of systems and operations. The company is working with forensics experts to identify and review any files that were impacted by the attack. 

The company said the majority of delays during the second quarter should be made up during the second half of the year. Hasbro, known for Play-Doh, Transformers and other brands, is one of the nation’s largest toy makers. 

The Rhode Island-based company also expects to incur certain costs related to investigating and bringing on advisers related to the cyberattack. 

Through its business continuity plan, Hasbro said it is still handling orders and shipping, and expects shipments of the games Magic: The Gathering and Secrets of Strixhaven to continue as planned.

Hasbro is delaying the release of first-quarter earnings as it continues to review information necessary to complete its financial results, according to the update, which was included in a regulatory filing with the Securities and Exchange Commission.

The company expects to report first-quarter revenue of $970 million to $985 million, representing a 9% to 11% increase over year-ago results, and adjusted operating profit of between $250 million and $260 million, a 12% to 17% improvement. 

For the full year, Hasbro expects to report a 3% to 5% increase in revenue. The company is reiterating its full-year guidance for 2026. 

Bank of America analysts, in a research note, viewed the update as positive for the company and upgraded its outlook for Hasbro, raising its first-quarter estimates and boostig its stock price objective to $113 a share.