Strong First Quarter Underscores Company's Superior Innovation and Operational Excellence

LAUSANNE, Switzerland & SAN JOSE, Calif.--(BUSINESS WIRE)--July 29, 2025-- 

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 2026.

   -- 
 Sales were $1.15 billion, up 5 percent in US dollars and 5 percent in 
      constant currency, compared to Q1 of the prior year. 
 
 
   -- 
 GAAP gross margin was 41.7 percent, down 110 basis points, compared to 
      Q1 of the prior year. Non-GAAP gross margin was 42.1 percent, down 120 
      basis points, compared to Q1 of the prior year. 
 
 
   -- 
 GAAP operating income was $162 million, up 6 percent, compared to Q1 of 
      the prior year. Non-GAAP operating income was $202 million, up 11 percent, 
      compared to Q1 of the prior year. 
 
 
   -- 
 GAAP earnings per share (EPS) was $0.98, up 7 percent compared to Q1 of 
      the prior year. Non-GAAP EPS was $1.26, up 12 percent compared to Q1 of 
      the prior year. 
 
 
   -- 
 Cash flow from operations was $125 million. The quarter-ending cash 
      balance was $1.5 billion. 
 
 
   -- 
 The Company returned $122 million of cash to shareholders through share 
      repurchases. 
 

"We delivered a strong first quarter - an encouraging start to the new fiscal year that underscores Logitech's resilience in a challenging environment," said Hanneke Faber, Logitech chief executive officer. "Our growth was driven by our strategic priorities and strong demand. Superior innovation drove growth in all key categories. We grew robustly both in our B2B and consumer channels. And we executed well across all regions - with notably strong performance in Asia Pacific."

"Our teams executed with excellence in the first quarter - we showed once again that Logitech thrives in uncertain times," said Matteo Anversa, Logitech chief financial officer. "Through our focus on playing offense, controlling costs and being agile, we delivered mid-single-digit sales growth year over year, with an expansion in non-GAAP operating margin of 80 basis points."

Outlook

Despite continued uncertainties in the operating environment, we are providing a financial outlook for the second quarter of FY26:

 
                                                      Q2 FY26 outlook 
Sales                                                 $1,145 - $1,190 million 
Sales growth (in US dollars, year over year)          3% - 7% 
Sales growth (in constant currency, year over year)   1% - 5% 
Non-GAAP operating income                             $180 - $200 million 
 

Financial Results Videoconference and Webcast

Logitech will hold a financial results videoconference to discuss the results for Q1 Fiscal Year 2026 on Tuesday, July 29, 2025 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 2026 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, 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 second quarter of Fiscal Year 2026 non-GAAP outlook.

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 $(SEC.UK)$, 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, 2025; Q2 FY26 outlook, including for net sales and non-GAAP operating income, growth expectations, 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; 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 and our ability to mitigate; if we do not successfully execute on strategic acquisitions and investments; risks associated with acquisitions; and the effect of changes to our effective income tax rates. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech's periodic filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 and other reports filed with the SEC, available at www.sec.gov, under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forward-looking statements to reflect new information or events or circumstances occurring after the date of this press release.

Note that unless noted otherwise, comparisons are year over year.

(MORE TO FOLLOW) Dow Jones Newswires

July 29, 2025 16:02 ET (20:02 GMT)