Logitech International S.A. LOGI reported fourth-quarter fiscal 2025 non-GAAP earnings of 93 cents per share, which beat the Zacks Consensus Estimate by 8.1%. However, the bottom line decreased 6% on a year-over-year basis, primarily due to higher promotional spending and increased operating expenses. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

In the fourth quarter of fiscal 2025, LOGI reported revenues of $1.01 billion, which came in line with the consensus mark. Compared with the year-ago quarter, the top line was flat on a reported basis and up 2% on a constant currency basis.

Logitech’s Q4 Segment Details

Revenues from Keyboards & Combos improved 2% year over year to $220.6 million. Revenues from the Pointing Devices category grew 9% to $185.9 million, Tablet Accessories increased 4% to $58 million and Webcams increased 3% to $77.9 million.

Our model estimates for Keyboards & Combos, Pointing Devices, Tablet Accessories and Webcams categories were pegged at $215.8 million, $170.9 million, $59.7 million and $74.1 million, respectively.

Gaming revenues decreased 4% year over year to $261.8 million, and Video Collaboration sales declined 3% to $143.2 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $270.9 million and $145.6 million, respectively.

Revenues from the Headsets product category fell 6% to $42.7 million, while Other categories’ sales plunged 21% to $20.2 million. Our model estimates for Headsets and Other categories were pegged at $46.1 million and $22.5 million, respectively.

Logitech’s Margins & Operating Metrics

The non-GAAP gross profit declined to $439.4 million from $441.4 million reported in the year-ago quarter. The non-GAAP gross margin contracted 10 basis points (bps) from the prior-year quarter to 43.5%, primarily due to strategic promotional spending and unfavorable foreign currency exchange rates, which more than offset the benefit of a significant reduction in manufacturing costs.

Non-GAAP operating expenses increased 8.2% year over year to $305.9 million. As a percentage of revenues, non-GAAP operating expenses increased 230 bps to 30.3%.

The non-GAAP operating income declined 15.8% to $133.5 million from $158.6 million reported in the year-ago quarter. The operating margin contracted 250 basis points to 13.2%, primarily due to lower gross margin and higher operating expenses as a percentage of revenues.

Logitech’s Liquidity and Shareholder Return

As of March 31, 2025, LOGI’s cash and cash equivalents were $1.5 billion, flat when compared with the previous quarter. The company generated $129.7 million in cash from operational activities in the fourth quarter and $842.6 million in full-fiscal 2025.

In the fiscal fourth quarter, the company returned $125.5 million of cash to its shareholders through share repurchases. It did not pay any dividends during the quarter. In full fiscal 2025, Logitech returned $796.7 million to its shareholders through repurchasing $588.8 million worth of common stock and $207.9 million in dividend payments.

Logitech Guides Strong Q1 Sales

Logitech issued strong sales guidance for the first quarter of fiscal 2026. For the quarter, it projects revenues between $1.1 billion and $1.15 billion, higher than the Zacks Consensus Estimate of $1.07 billion. The company’s guidance reflects year-over-year growth in the range of 1%-6% on a reported basis and 0%-5% on a constant currency basis.

Logitech projects non-GAAP operating profit in the range of $155-$185 million, down 15% to up 1% year over year.

LOGI’s Zacks Rank & Stocks to Consider

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

Paycom Software PAYC, Broadcom AVGO and Pegasystems PEGA are some top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. While Paycom Software and Broadcom sport a Zacks Rank #1 (Strong Buy) each at present, Pegasystems carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Paycom Software’s 2025 earnings has remained unchanged over the past 60 days at $8.72 per share, and suggests a year-over-year increase of 6.2%. Paycom Software shares have soared 20.5% over the past year.

The Zacks Consensus Estimate for Broadcom’s fiscal 2025 earnings has been revised upward by 29 cents to $6.60 per share in the past 60 days, suggesting an increase of 35.5% from fiscal 2024’s reported figure. Broadcom shares have rallied 47.4% over the past year.

The Zacks Consensus Estimate for Pegasystems’ 2025 earnings has moved upward by 12 cents to $3.26 per share in the past seven days, reflecting 7.6% year-over-year growth. Pegasystems shares have risen 53.4% in the trailing 12 months.

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Logitech International S.A. (LOGI) : Free Stock Analysis Report

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