Logitech's Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

Logitech International S.A. (LOGI) reported second-quarter fiscal 2026 non-GAAP earnings of $1.45 per share, which beat the Zacks Consensus Estimate by 18.9%. Moreover, the bottom line increased 21% on a year-over-year basis.

In the second quarter of fiscal 2026, LOGI reported revenues of $1.19 billion, which topped the consensus mark by 1.1%. Compared with the year-ago quarter, the top line increased 6% on a reported basis and 4% on a constant currency basis.

Logitech’s Q2 Segment Details

Revenues from Keyboards & Combos rose 12% year over year to $235.9 million. Revenues from the Pointing Devices category grew 13% to $221.1 million, while Webcams increased 4% to $83.3 million.

Our model estimates for Keyboards & Combos, Pointing Devices and Webcams categories were pegged at $216.4 million, $205.5 million and $89.8 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 8% year over year to $323.3 million, and Video Collaboration sales rose 5% to $167.7 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $311.3 million and $176.7 million, respectively.

Revenues from the Headsets product category decreased 7% to $43.5 million, while Other categories’ sales plunged 30% to $26.3 million. Tablet Accessories sales declined 1% to $85.1 million. Our model estimates for Headsets, Tablet Accessories and Other categories were pegged at $47 million, $94 million and $28.8 million, respectively.

Logitech’s Margins & Operating Metrics

The non-GAAP gross profit increased to approximately $520 million from $492.4 million reported in the year-ago quarter. However, the non-GAAP gross margin contracted 30 basis points (bps) from the prior-year quarter to 43.8%.

Non-GAAP operating expenses decreased 3.2% year over year to approximately $290 million. As a percentage of revenues, non-GAAP operating expenses contracted 250 bps to 24.4%.

Non-GAAP operating income increased 19.3% to $230 million from $192.8 million reported in the year-ago quarter. The operating margin expanded 210 basis points to 19.4%.

Logitech’s Liquidity and Shareholder Return

As of Sept. 30, 2025, LOGI’s cash and cash equivalents were $1.38 billion, down from the previous quarter’s $1.49 billion. The company generated $229 million in cash from operational activities in the second quarter and $354 million in the first half of fiscal 2026.

The company returned $340 million of cash to its shareholders through share repurchases and dividend payments during the second quarter and $461 million in the first half of fiscal 2026.

Logitech Initiates Strong Q3 Guidance

Logitech issued strong sales guidance for the third quarter of fiscal 2026. For the quarter, it projects revenues between $1.375 billion and $1.415 billion, which is higher than the Zacks Consensus Estimate of $1.35 billion. The top-line guidance range suggests year-over-year growth of 3-6% on a reported basis and 1-4% on a constant currency basis.

Logitech projects non-GAAP operating profit in the range of $270-$290 million during the third quarter.

LOGI’s Zacks Rank & Stocks to Consider

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

Impinj (PI), Credo Technology Group (CRDO) and Amphenol (APH) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Impinj’s full-year 2025 earnings is pegged at $1.98 per share, revised upward by 4 cents over the past 30 days and suggests a year-over-year decline of 6.2%. Impinj shares have soared 63.1% year to date.

The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 141.6% year to date.

The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past seven days, implying 70.4% year-over-year growth. Amphenol shares have risen 98.7% year to date.

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