Strong First Quarter Marks Tenth Consecutive Quarter of Growth

LAUSANNE, Switzerland & SAN JOSE, Calif.--(BUSINESS WIRE)--July 28, 2026-- 

SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR -- Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the first quarter of Fiscal Year 2027.

   --  Sales were $1.23 billion, up 7 percent in US dollars and 5 percent in 
      constant currency, compared to Q1 of the prior year. 
 
   --  GAAP gross margin was 49.5 percent, up 780 basis points, compared to Q1 
      of the prior year. Non-GAAP gross margin was 49.8 percent, up 770 basis 
      points, compared to Q1 of the prior year. These numbers include $61 
      million in tariff refunds. 
 
   --  GAAP operating income was $259 million, up 60 percent, compared to Q1 
      of the prior year. Non-GAAP operating income was $290 million, up 44 
      percent, compared to Q1 of the prior year. These numbers include $61 
      million in tariff refunds. 
 
   --  GAAP earnings per share (EPS) was $1.63, up 66 percent compared to Q1 
      of the prior year. Non-GAAP EPS was $1.85, up 47 percent compared to Q1 
      of the prior year. 
 
   --  Cash flow from operations was $167 million. The quarter-ending cash 
      balance was $1.75 billion. 
 
   --  The Company returned $114 million of cash to shareholders through share 
      repurchases. 

"We delivered a strong first quarter against a dynamic backdrop," said Hanneke Faber, Logitech chief executive officer. "Superior innovation and stronger brand marketing drove strong growth across core categories, including double-digit growth in Pointing Devices."

"Our teams demonstrated excellent operational discipline to start the fiscal year," said Matteo Anversa, Logitech chief financial officer. "While our reported results benefited from tariff refunds, our operational performance was impressive even excluding these refunds, with non-GAAP operating income growing 14 percent year over year. Strong gross margin resilience allowed us to exceed our operating income outlook and generate robust cash flow while funding our growth investments."

Outlook

Our financial outlook for the second quarter of Fiscal Year 2027:

 
                                                     Q2 FY27 outlook 
Sales                                                $1,185 - $1,220 million 
Sales growth (in US dollars, year over year)         0% - 3% 
Sales growth (in constant currency, year over year)  0% - 3% 
Non-GAAP operating income                            $185 - $210 million 
 

Longer-term Perspectives

While Logitech is not issuing a formal full-year FY27 outlook, demand momentum from Q1 is expected to carry into the remainder of the year.

However, in late June 2026, a serious incident in the manufacturing facilities of one of Logitech's semiconductor suppliers resulted in its temporary closure, which is likely to impact the Company's ability to effectively meet future demand. The Company is working on multiple mitigation plans.

The midpoint of the Q2 outlook contemplates growth despite a Q2 headwind of approximately $20 million in net sales caused by this supplier incident.

For Q3, based on limited available information, the negative impact of the supplier incident is estimated to be up to $200 million in net sales. The incident is estimated to be largely resolved by Q4, which would mean little to no impact to Q4 results.

As for profitability, the Company continues to expect full-year non-GAAP operating margin to track near the high end of the 15-18 percent long-term target range, helped by strong operating performance and this quarter's tariff refunds.

Financial Results Videoconference and Webcast

Logitech will hold a financial results videoconference to discuss the results for Q1 Fiscal Year 2027 on Tuesday, July 28, 2026 at 1:30 p.m. Pacific Daylight Time $(PDT)$ and 10:30 p.m. Central European Summer Time (CEST).

A livestream of the event will be available on the Logitech corporate website at https://ir.logitech.com. This press release and the Q1 Fiscal Year 2027 Shareholder Letter are also available there.

Use of Non-GAAP Financial Information and Constant Currency

To facilitate comparisons to Logitech's historical results, Logitech has included non-GAAP adjusted measures in this press release, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, restructuring charges (credits), net, loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under "Supplemental Financial Information" after the tables below and posted to our website at https://ir.logitech.com. Logitech also presents percentage sales growth in constant currency ("cc"), a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period's average exchange rate for that currency and comparing that to current period sales. Logitech believes this information, used together with the GAAP financial information, will help investors to evaluate its current period performance and trends in its business. With respect to the Company's outlook for non-GAAP operating income and non-GAAP operating margin, most of the excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to the GAAP amounts has been provided for the Q2 FY27 outlook and expectations for FY27 non-GAAP operating margin.

Public Dissemination of Certain Information

Recordings of Logitech's earnings videoconferences and certain events Logitech participates in or hosts with members of the investment community are posted on the company's investor relations website at https://ir.logitech.com. Additionally, Logitech provides notifications of news or announcements regarding its operations and financial performance, including its filings with the Securities and Exchange Commission (SEC), investor events, and press and earnings releases as part of its investor relations website. Logitech intends to use its investor relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Logitech's corporate governance information also is available on its investor relations website.

About Logitech

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating and gaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech and its other brands, including Logitech G, at www.logitech.com or company blog.

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three months ended June 30, 2026; Q2 FY27 outlook, expectations for FY27 non-GAAP operating margin, including for net sales and non-GAAP operating income, demand and growth expectations, the impact of the incident in the manufacturing facilities of one of our semiconductor suppliers, and related assumptions. The forward-looking statements in this press release are subject to risks and uncertainties that could cause Logitech's actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: macroeconomic and geopolitical conditions and other factors and their impact, for example the resilience of overall consumer demand, B2B and IT spending levels, changes in inflation levels and monetary policies, governments' fiscal policies, and geopolitical conflicts; our expectations regarding our expense discipline efforts, including the timing thereof; changes in secular trends that impact our business; if our product offerings, marketing activities and investment prioritization decisions do not result in the sales, profitability or profitability growth we expect, or when we expect it; if we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories; issues relating to development and use of artificial intelligence; if we do not successfully execute on our growth opportunities or our growth opportunities are more limited than we expect; the effect of demand variability, supply shortages and other supply chain challenges affecting the availability and price of required components and materials; the effect of logistics challenges, including disruptions in logistics; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; if we are not able to maintain and enhance our brands; if our products and marketing strategies fail to separate our products from competitors' products; if we do not efficiently manage our spending; our expectations regarding our restructuring efforts, including the timing thereof; if there is a deterioration of business and economic conditions in one or more of our sales regions or product categories, or significant fluctuations in exchange rates; changes in trade regulations, policies and agreements and the imposition of tariffs that affect our products or operations, including the ultimate treatment and any changes to tariff refunds; if we do not successfully execute on strategic acquisitions and investments; risks associated with acquisitions; the effect of changes to our effective income tax rates; and the ability and timing to resolve the impact of the incident in the supplier manufacturing