Logitech's 2026 Q1 Earnings Call: Unpacking Contradictions in Demand, Margins, and B2B Growth

Consumer demand and pull-forward impact, gross margin impact of tariffs and pricing actions, consumer reaction to price increases, impact of tariffs, and B2B growth and strategic focus are the key contradictions discussed in Logitech's latest 2026Q1 earnings call.



Net Sales and Demand Growth:
- Logitech International reported a net sales growth of 5% for Q1 2026, with demand growth mid-single digits.
- This growth was driven by strong demand across both the consumer and business-to-business segments, despite external headwinds like tariffs and inflation.

Cost Management and Profitability:
- The company reduced operating expenses by 2% year-over-year and delivered a solid gross margin of 42.1%.
- These improvements were achieved through disciplined cost controls and rigorous cost discipline, which remains a cornerstone of their strategy.

Agility in Manufacturing and Supply Chain:
- Logitech is on track to reduce the share of U.S. products originating from China from 40% to 10% by the end of the year.
- This agility is a key factor in their resilience against external uncertainties, specifically tariffs.

B2B Business Strength:
- B2B demand outpaced consumer demand, with video conferencing experiencing a 13% year-over-year growth.
- The growth in the B2B segment is driven by Logitech's strong portfolio of enterprise solutions and expansion into new verticals like Education.