MW Mattel's stock sinks as weak earnings reveal a tale of two toymakers

By Claudia Assis

Mattel's stock drops 25% after earnings, while Hasbro's rises to highest point in six years

Mattel's dolls were no match for Hasbro's fantasy-realm dominance.

Shares of Mattel sank 25% in the after-hours session Tuesday after the toymaker reported a lackluster holiday quarter, which stung all the more because rival Hasbro unveiled much better results earlier in the day and saw its stock rise to its highest point in six years.

Both toymakers faced a difficult holiday season, marred by tariffs and intensive promotions. But only one had "Magic: The Gathering."

Mattel $(MAT)$ late Tuesday reported adjusted earnings of 39 cents a share on sales of $1.76 billion, which were up 7% from the fourth quarter of 2024. Analysts polled by FactSet expected adjusted earnings of 54 cents a share on sales of $1.84 billion.

Hasbro $(HAS)$ earlier Tuesday reported adjusted earnings of $1.51 a share on sales of $1.45 billion for the holiday quarter. That compared with expectations for 96 cents a share on sales of $1.26 billion, according to FactSet.

Hasbro shares rose more than 7% to close at $104 in the regular session, their highest close since Feb. 5, 2020, when they closed at $105.07, and the largest one-day percentage increase since April 24, 2025, when they rose 14.6%.

Hasbro highlighted a "standout performance" for revenue related to "Magic: The Gathering" and growth in licensed digital gaming, which has been an engine of growth and a source of expanded reach for the toymaker. The stock has gained more than 25% in the past 12 months, compared with gains of about 6% for Mattel's stock in the same period.

Separately, Mattel said it had agreed to buy full ownership of Mattel163 mobile games studio, a joint venture with NetEase, for $159 million. Mattel163 develops digital games based on Mattel's brands, such as Uno and Skip Bo.

Hasbro remains a top pick among toymakers for analysts at Jefferies. The company is "the most compelling idea in our toy coverage, given the strength and durability" of the "Magic: The Gathering" engine, they said.

"The company enters 2026 with momentum, differentiated IP, expanding distribution, and strengthened financial flexibility, positioning [Hasbro] to outperform peers and deliver superior multi-year earnings power," they said.

-Claudia Assis

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February 10, 2026 17:47 ET (22:47 GMT)

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