Logitech's Q3 Earnings Surpass Estimates, Revenues Rise Y/Y

Logitech International S.A. LOGI reported third-quarter fiscal 2026 non-GAAP earnings of $1.93 per share, which beat the Zacks Consensus Estimate by 7.8%. The bottom line increased 21% on a year-over-year basis.

In the third quarter of fiscal 2026, LOGI reported revenues of $1.42 billion, which surpassed the consensus mark by 0.7%. Compared with the year-ago quarter, the top line increased 6% on a reported basis and 4% on a constant currency basis.

Logitech’s Q3 Segment Details

Revenues from Keyboards & Combos rose 8% year over year to $254.6 million. Revenues from the Pointing Devices category grew 11% to $241.2 million, while Webcams decreased 3% to $82.3 million.

Our model estimates for Keyboards & Combos, Pointing Devices and Webcams categories were pegged at $249.1 million, $233.4 million and $88.7 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 3% year over year to $482.7 million, and Video Collaboration sales rose 10% to $193.3 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $484.8 million and $184.4 million, respectively.

Revenues from the Headsets product category increased 0.1% to $45.9 million, while Other categories’ sales plunged 22% to $27.9 million. Tablet Accessories sales increased 21% to $93.6 million. Our model estimates for Headsets, Tablet Accessories and Other categories were pegged at $45.8 million, $85.2 million and $27.5 million, respectively.

Logitech’s Margins & Operating Metrics

The non-GAAP gross profit increased to approximately $618.8 million from $579.1 million reported in the year-ago quarter. The non-GAAP gross margin contracted 30 basis points (bps) from the prior-year quarter to 43.5%.

Non-GAAP operating expenses decreased 2.1% year over year to approximately $306.4 million. As a percentage of revenues, non-GAAP operating expenses contracted 180 bps to 21.6%.

Non-GAAP operating income increased 17.5% to $312.4 million from $265.9 million reported in the year-ago quarter. The operating margin expanded 220 basis points to 22%.

Logitech’s Liquidity and Shareholder Return

As of Dec. 31, 2025, LOGI’s cash and cash equivalents were $1.82 billion, up from the previous quarter’s $1.38 billion. The company generated $481 million in cash from operational activities in the third quarter and $834 million in the first three quarters of fiscal 2026.

The company returned $27.1 million of cash to its shareholders through share repurchases during the third quarter. In the first three quarters of fiscal 2026, the company returned approximately $488 million through share repurchases and dividend payments.

Logitech Initiates Q4 FY26 Guidance

For the fourth quarter of fiscal 2026, Logitech projects revenues between $1.07 billion and $1.09 billion, up from the Zacks Consensus Estimate of $1.06 billion. The top-line guidance range suggests year-over-year growth of 6-8% on a reported basis and 3-5% on a constant currency basis.

For fiscal 2026, Logitech projects revenues between $4.825 billion and $4.845 billion, up from the Zacks Consensus Estimate of $4.81 billion. The top-line guidance range suggests year-over-year growth of approximately 6% on a reported basis and approximately 4% on a constant currency basis.

Logitech projects non-GAAP operating profit in the range of $155-$165 million during the fourth quarter of fiscal 2026.

Logitech projects non-GAAP operating profit in the range of $900-$910 million for fiscal 2026.

LOGI’s Zacks Rank & Stocks to Consider

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

Amphenol APH, Micron Technology MU and Lam Research LRCX are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, Micron Technology and Lam Research 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 upward by 2 cents to $3.31 per share over the past 30 days and suggests a year-over-year increase of 75.1%. Amphenol shares have jumped 58.4% in the past six months.

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved downwards by 7 cents to $33.01 per share in the past seven days, calling for a year-over-year surge of 298.2%. Micron Technology shares have soared 267.4% in the past six months.

The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings has been revised upward by 2 cents to $4.85 per share over the past seven days, suggesting a year-over-year increase of 17.2%. Lam Research shares have surged 141.9% in the past six months.

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This article originally published on Zacks Investment Research (zacks.com).

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