Logitech's Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

Logitech International S.A. LOGI reported first-quarter fiscal 2026 non-GAAP earnings of $1.26 per share, which beat the Zacks Consensus Estimate by 15.6%. Moreover, the bottom line increased 12% on a year-over-year basis.

In the first quarter of fiscal 2026, LOGI reported revenues of $1.15 billion, which beat the consensus mark by 3.2%. Compared with the year-ago quarter, the top line increased 5% on a reported basis and 5% on a constant currency basis.

Logitech’s Q1 Segment Details

Revenues from Keyboards & Combos rose 3% year over year to $222.5 million. Revenues from the Pointing Devices category grew 3% to $195.8 million, Tablet Accessories increased 16% to $91.2 million, and Webcams increased 16% to $84.4 million.

Our model estimates for Keyboards & Combos, Pointing Devices, Tablet Accessories and Webcams categories were pegged at $226.1 million, $192.4 million, $76.7 million and $72.3 million, respectively.

Logitech International S.A. Price, Consensus and EPS Surprise

Logitech International S.A. price-consensus-eps-surprise-chart | Logitech International S.A. Quote

Gaming revenues increased 2% year over year to $315.9 million, and Video Collaboration sales rose 13% to $166.7 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $326.9 million and $143.7 million, respectively.

Revenues from the Headsets product category increased 3% to $45.5 million, while Other categories’ sales plunged 16% to $25.7 million. Our model estimates for Headsets and Other categories were pegged at $44.4 million and $27.4 million, respectively.

Logitech’s Margins & Operating Metrics

The non-GAAP gross profit increased to $483.5 million from $471.3 million reported in the year-ago quarter. However, non-GAAP gross margin contracted 120 basis points (bps) from the prior-year quarter to 42.1%.

Non-GAAP operating expenses decreased 2.5% year over year to $281.7 million. As a percentage of revenues, non-GAAP operating expenses decreased 200 bps to 24.5%.

Non-GAAP operating income increased 10.6% to $201.8 million from $182.4 million reported in the year-ago quarter. The operating margin expanded 80 basis points to 17.6%.

Logitech’s Liquidity and Shareholder Return

As of June 30, 2025, LOGI’s cash and cash equivalents were $1.49 billion, slightly down from the previous quarter’s $1.5 billion. The company generated $125 million in cash from operational activities in the first quarter.

In the fiscal first quarter, the company returned $122 million of cash to its shareholders through share repurchases. It did not pay any dividends during the quarter.

Logitech Guides Strong Q2 Sales

Logitech issued strong sales guidance for the second quarter of fiscal 2026. For the quarter, it projects revenues between $1.145 billion and $1.19 billion. The mid-point of the guidance range is higher than the Zacks Consensus Estimate of $1.15 billion. The company’s guidance suggests year-over-year growth of 3-7% on a reported basis and 1-5% on a constant currency basis.

Logitech projects non-GAAP operating profit in the range of $180-$200 million.

LOGI’s Zacks Rank & Stocks to Consider

Currently, Logitech carries a Zacks Rank #3 (Hold).

Amphenol APH, DoorDash DASH and CyberArk Software CYBR are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, DoorDash and CyberArk Software sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amphenol’s 2025 earnings has been revised upwards over the past seven days at $2.88 per share and suggests a year-over-year increase of 52.4%. Amphenol shares have soared 51.6% year to date.

The Zacks Consensus Estimate for DoorDash’s 2025 earnings has been revised upward by a penny to $2.16 per share in the past 30 days, suggesting an increase of 644.8% from year ago’s reported figure. DoorDash shares have rallied 45% year to date.

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