Once a fringe fixture of comic-book stores and hobby emporiums, a trading-card game has become a powerhouse in the toy industry.

Magic: The Gathering has long been Hasbro's biggest brand. But lately, it has found a new gear, notching growth that has surprised Wall Street -- and pushed Hasbro's chief executive to rhapsodize to investors about its scale.

The surge in popularity for Magic couldn't have come at a better time for Hasbro, which also makes Monopoly games, Nerf guns and G.I. Joe action figures. Sales of traditional toys have been under pressure for years, driven by declining birthrates and a shift toward videogames and online games. Sales of dolls are down 36% from 2021 to 2025, according to data from intelligence firm Circana. Toddler and preschool toys are down 15% over the same period.

But games and puzzles -- the segment that includes Magic -- have boomed during that time frame, up 36%. Those types of toys attract an audience that is typically older, increasingly including adults, and more likely to make repeat purchases.

Magic has been among the biggest hits in the category. Revenue from the franchise has grown an average of 17% a year for the past 17 years -- and CEO Chris Cocks said last week that Magic is "off to a ripping start" this year, with sales up 34% in the first half to over $1 billion. A new series of cards based on Marvel superheroes set a record for first-day and first-month sales of Magic cards, becoming the fastest set to reach $300 million in revenue, he said.

"Step back and look at Magic over any real horizon, and you see one of the most consistent, compounding franchises in entertainment, a genuine peer to the biggest names in gaming," Cocks said on an earnings call Tuesday. "Magic is not a niche hobby business. It is a mega franchise."

The latest results sent Hasbro shares soaring. They jumped 8.8% Tuesday, their biggest gain in more than a year.

Created by mathematician Richard Garfield and first published by gaming company Wizards of the Coast in the early 1990s, Magic found success by selling cards through thousands of local game stores around the world. Hasbro acquired Wizards in 1999, and says more than 50 million people have played the game -- where players are powerful wizards called Planeswalkers and build card decks that can help them summon fighting creatures or cast spells for protection.

Before becoming CEO of Hasbro in 2022, Cocks ran Wizards for six years. The unit, which is also home to the Dungeons & Dragons franchise and other games, has roughly doubled its revenue on his watch to over $1 billion. One way has been to license blockbuster franchises to create new Magic card sets, so that a player can build a deck that includes Spider-Man playing alongside Gandalf from Lord of the Rings or Leonardo from Teenage Mutant Ninja Turtles.

A starter box can be priced at about $29.99. But many customers will then buy special box sets that could sell for $50 or more. Others may choose to try their luck in getting coveted cards by purchasing booster packs for about $5 to $7 each.

Magic fans play and collect for years, Cocks said, adding that he himself has been an engaged fan for more than 30 years, since discovering the game at a comic store in college.

"This is not just a fad that just showed up," said Arpiné Kocharyan, a UBS analyst who tracks the toys and games industry.

The brand has had "very successful collaborations with some of the best trophy franchises of the world, like Marvel, Final Fantasy and Lord of the Rings," she added. "These franchises pull in collectors as well as players beyond your core, hardcore hobby-store gaming player."

Write to Natasha Khan at natasha.khan@wsj.com

(END) Dow Jones Newswires

July 26, 2026 11:00 ET (15:00 GMT)

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