What drove LOGI's strong EPS growth in Q3 2025?

Logitech International SA (LOGI) experienced a robust EPS growth in Q3 2025, driven by several key factors: 1. **Strategic Product Innovations**: The company's focus on innovation, particularly in the gaming sector, with the launch of new products and AI-driven technologies, such as the Logitech Sight and Rally Board 65, contributed significantly to sales growth. 2. **Strong Demand in Key Segments**: Logitech saw notable growth in its B2B channel, with services bookings more than doubling and a 20% increase in the education vertical. The gaming segment also performed well, with sales near pandemic-high levels due to new product launches ahead of the holiday season. 3. **Market Share Expansion**: The company expanded its market share in various product categories, including pointing devices, webcams, and gaming headsets. This broad-based growth across segments contributed to the overall increase in revenue and EPS. 4. **Operational Efficiency and Margin Improvement**: Logitech improved its gross margin to 42.9%, up 90 basis points from the prior year, reflecting enhanced operational efficiency. This improvement, coupled with a non-GAAP gross margin of 43.2%, marked the fifth consecutive quarter of year-over-year gross margin rate expansion. 5. **Effective Shareholder Returns**: Logitech returned $200 million to shareholders through share repurchases, demonstrating a commitment to shareholder value. This strategic capital management likely boosted EPS growth by retaining earnings within the company and potentially increasing future earnings per share. In summary, Logitech's strong EPS growth in Q3 2025 was driven by strategic product innovations, strong demand in key segments, market share expansion, operational efficiency, and effective shareholder returns. These factors combined to surpass market expectations and contribute to the company's robust financial performance.