Logitech Announces Q1 Fiscal Year 2026 Results

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), 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.

Logitech and other Logitech marks are trademarks or registered trademarks of Logitech Europe S.A. and/or its affiliates in the U.S. and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s website at www.logitech.com.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
		Three Months Ended June 30,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS			2025				2024
Net sales		$	1,147,703			$	1,088,217
Cost of goods sold			666,592				619,517
Amortization of intangible assets			2,149				2,442
Gross profit			478,962				466,258
Operating expenses:
Marketing and selling			195,796				196,905
Research and development			74,587				75,307
General and administrative			41,797				37,458
Amortization of intangible assets and acquisition-related costs			2,646				2,703
Restructuring charges, net			2,042				386
Total operating expenses			316,868				312,759
Operating income			162,094				153,499
Interest income			11,229				15,790
Other income (expense), net			1,162				(1,898	)
Income before income taxes			174,485				167,391
Provision for income taxes			28,470				25,558
Net income		$	146,015			$	141,833
Net income per share:
Basic		$	0.99			$	0.93
Diluted		$	0.98			$	0.92
Weighted average shares used to compute net income per share:
Basic			147,864				153,300
Diluted			149,053				154,978

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
		June 30,				March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS			2025				2025
Current assets:
Cash and cash equivalents		$	1,487,822			$	1,503,205
Accounts receivable, net			636,523				454,546
Inventories			499,770				503,747
Other current assets			154,106				131,211
Total current assets			2,778,221				2,592,709
Non-current assets:
Property, plant and equipment, net			116,103				113,858
Goodwill			465,790				463,230
Other intangible assets, net			20,324				24,630
Other assets			362,525				344,077
Total assets		$	3,742,963			$	3,538,504
Current liabilities:
Accounts payable		$	549,936			$	414,586
Accrued and other current liabilities			672,788				686,503
Total current liabilities			1,222,724				1,101,089
Non-current liabilities:
Income taxes payable			97,074				88,483
Other non-current liabilities			235,913				221,512
Total liabilities			1,555,711				1,411,084
Shareholders’ equity:
Registered shares, CHF 0.25 par value Issued shares: 168,994 at June 30, 2025 and March 31, 2025			29,432				29,432
Additional paid-in capital			64,604				82,591
Shares in treasury, at cost Treasury shares: 21,443 and 20,485 at June 30, 2025 and March 31, 2025 respectively			(1,536,190	)			(1,464,912	)
Retained earnings			3,759,569				3,627,261
Accumulated other comprehensive loss			(130,163	)			(146,952	)
Total shareholders’ equity			2,187,252				2,127,420
Total liabilities and shareholders’ equity		$	3,742,963			$	3,538,504

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
		Three Months Ended June 30,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS			2025				2024
Cash flows from operating activities:
Net income		$	146,015			$	141,833
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			15,064				14,506
Amortization of intangible assets			4,795				5,079
Loss on investments			393				1,186
Share-based compensation expense			32,828				23,405
Deferred income taxes			12,113				11,662
Other			(25	)			(24	)
Changes in assets and liabilities:
Accounts receivable, net			(166,767	)			(53,952	)
Inventories			17,304				(39,095	)
Other assets			(19,817	)			4,907
Accounts payable			135,003				109,028
Accrued and other liabilities			(51,861	)			(42,506	)
Net cash provided by operating activities			125,045				176,029
Cash flows from investing activities:
Purchases of property, plant and equipment			(16,276	)			(14,586	)
Purchases of deferred compensation investments			(3,261	)			(695	)
Proceeds from sales of deferred compensation investments			1,738				738
Other investing activities			(301	)			(816	)
Net cash used in investing activities			(18,100	)			(15,359	)
Cash flows from financing activities:
Purchases of registered shares			(121,657	)			(130,899	)
Proceeds from exercises of stock options and purchase rights			3,262				4,618
Tax withholdings related to net share settlements of restricted stock units			(16,038	)			(18,853	)
Net cash used in financing activities			(134,433	)			(145,134	)
Effect of exchange rate changes on cash and cash equivalents			12,105				(1,998	)
Net increase (decrease) in cash and cash equivalents			(15,383	)			13,538
Cash and cash equivalents, beginning of the period			1,503,205				1,520,842
Cash and cash equivalents, end of the period		$	1,487,822			$	1,534,380

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended June 30,
NET SALES			2025				2024			Change
Net sales by product category:
Gaming (1)		$	315,875			$	309,475			2	%
Keyboards & Combos			222,492				215,333			3
Pointing Devices			195,780				189,946			3
Video Collaboration			166,716				147,042			13
Webcams			84,374				72,904			16
Tablet Accessories			91,227				78,539			16
Headsets			45,523				44,236			3
Other (2)			25,716				30,742			(16	)
Total Net Sales		$	1,147,703			$	1,088,217			5	%
(1) Gaming includes streaming services revenue generated by Streamlabs.
(2) Other primarily consists of mobile speakers and PC speakers.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended June 30,
GAAP TO NON-GAAP RECONCILIATION (A)			2025				2024
Gross profit - GAAP		$	478,962			$	466,258
Share-based compensation expense			2,380				2,598
Amortization of intangible assets			2,149				2,442
Gross profit - Non-GAAP		$	483,491			$	471,298
Gross margin - GAAP			41.7	%			42.8	%
Gross margin - Non-GAAP			42.1	%			43.3	%
Operating expenses - GAAP		$	316,868			$	312,759
Less: Share-based compensation expense			30,448				20,807
Less: Amortization of intangible assets and acquisition-related costs			2,646				2,703
Less: Restructuring charges, net			2,042				386
Operating expenses - Non-GAAP		$	281,732			$	288,863
% of net sales - GAAP			27.6	%			28.7	%
% of net sales - Non-GAAP			24.5	%			26.5	%
Operating income - GAAP		$	162,094			$	153,499
Share-based compensation expense			32,828				23,405
Amortization of intangible assets and acquisition-related costs			4,795				5,145
Restructuring charges, net			2,042				386
Operating income - Non-GAAP		$	201,759			$	182,435
% of net sales - GAAP			14.1	%			14.1	%
% of net sales - Non-GAAP			17.6	%			16.8	%
Net income – GAAP		$	146,015			$	141,833
Share-based compensation expense			32,828				23,405
Amortization of intangible assets and acquisition-related costs			4,795				5,145
Restructuring charges, net			2,042				386
Loss on investments			393				1,186
Non-GAAP income tax adjustment			2,095				2,670
Net income - Non-GAAP		$	188,168			$	174,625
Net income per share:
Diluted – GAAP		$	0.98			$	0.92
Diluted - Non-GAAP		$	1.26			$	1.13
Shares used to compute net income per share:
Diluted - GAAP and Non-GAAP			149,053				154,978

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) – unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended June 30,
SHARE-BASED COMPENSATION EXPENSE			2025				2024
Share-based Compensation Expense
Cost of goods sold		$	2,380			$	2,598
Marketing and selling			13,930				11,851
Research and development			6,351				5,739
General and administrative			10,167				3,217
Total share-based compensation expense			32,828				23,405
Income tax benefit			(4,906	)			(7,602	)
Total share-based compensation expense, net of income tax benefit		$	27,922			$	15,803

*Note: These preliminary results for the three months ended June 30, 2025 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q.

(A) Non-GAAP Financial Measures

To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of financial measures, both GAAP and non-GAAP, in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.

While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting both our performance and our cash-generating potential, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enables investors to more fully understand trends in our current and future performance. In assessing our business during the quarter ended June 30, 2025 and prior periods presented, we excluded items in the following general categories, each of which are described below:

Share-based compensation expense. We believe that providing non-GAAP measures excluding share-based compensation expense, in addition to the GAAP measures, allows for a more transparent comparison of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine share-based compensation expense. We believe that excluding share-based compensation expense enhances our ability and the ability of investors to understand the impact of non-cash share-based compensation on our operating results and to compare our results against the results of other companies.

Amortization of intangible assets. We incur intangible asset amortization expense, primarily in connection with our acquisitions of various businesses and technologies. The amortization of purchased intangibles varies depending on the level of acquisition activity. We exclude these various charges in budgeting, planning and forecasting future periods and we believe that providing the non-GAAP measures excluding these various non-cash charges, as well as the GAAP measures, provides additional insight when comparing our gross profit, operating expenses, and financial results from period to period.

Acquisition-related costs. We incurred expenses in connection with our acquisitions which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition-related costs include certain incremental expenses incurred to effect a business combination. We believe that providing the non-GAAP measures excluding these costs, as well as the GAAP measures, assists our investors because such costs are not reflective of our ongoing operating results.

Restructuring charges (credits), net. These charges (credits) are associated with restructuring plans, and will vary based on the initiatives in place during any given period. Restructuring charges may include costs related to employee terminations, facility closures and early cancellation of certain contracts as well as other costs resulting from our restructuring initiatives. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such charges (credits) are not reflective of our ongoing operating results.

Loss (gain) on investments. We recognize losses (gains) related to our investments in various companies, which vary depending on the operational and financial performance of the companies in which we invest. These amounts include our losses (earnings) on equity method investments, as well as investment impairments and losses (gains) resulting from sales or other events related to our investments. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such losses (gains) are not reflective of our ongoing operations.

Non-GAAP income tax adjustment. Non-GAAP income tax adjustment primarily measures the income tax effect of non-GAAP adjustments excluded above as well as the income tax impact of non-recurring deferred taxes, tax settlements, and other non-routine tax events, the determination of which is based upon the nature of the underlying items.

Each of the non-GAAP financial measures described above, and used in this press release, should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company’s financial results for the foreseeable future. We compensate for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information.

Additional Supplemental Financial Information - Constant Currency

In addition, Logitech presents percentage sales growth in constant currency 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.

(LOGIIR)

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