It has been about a month since the last earnings report for Logitech (LOGI). Shares have added about 13.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Logitech due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Logitech International S.A. before we dive into how investors and analysts have reacted as of late.
Logitech's Q1 Earnings Surpass Estimates, Revenues Rise Y/Y
Logitech International S.A. (LOGI - Research Report) 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.
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 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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 7.11% due to these changes.
VGM Scores
Currently, Logitech has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Logitech has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Logitech International S.A. (LOGI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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