Logitech 2026 Q1 Earnings Encouraging Start with 2.9% Net Income Growth

Logitech (LOGI) reported its fiscal 2026 Q1 earnings on July 29th, 2025. Despite modest expectations, the company surpassed revenue forecasts, achieving $1.15 billion in total sales, reflecting a 5% increase both in US dollars and constant currency. Logitech's guidance remains in line with previous projections, projecting Q2 sales growth between 1% and 5% year-over-year in constant currency. The company anticipates non-GAAP operating income between $180 million and $200 million for the next quarter, aligning with current market expectations. Maintaining a strong cash position, Logitech also announced share repurchases totaling $122 million.

Revenue
Logitech reported a robust 5.5% increase in total revenue for Q1 2026, amounting to $1.15 billion compared to $1.09 billion in the previous year. The gaming segment contributed $315.88 million, followed by keyboards & combos at $222.49 million. Pointing devices generated $195.78 million, while video collaboration brought in $166.72 million. Webcams added $84.37 million, and tablet accessories recorded $91.23 million. Headsets and other segments contributed $45.52 million and $25.72 million respectively, leading to total net sales of $1.15 billion.

Earnings/Net Income
Logitech experienced continued earnings growth, with EPS rising 6.5% to $0.99 in Q1 2026, up from $0.93 in Q1 2025. Net income also grew by 2.9%, reaching $146.01 million compared to $141.83 million the previous year. This reflects a positive outlook for the company's profitability.

Price Action
The stock price of Logitech edged down 1.23% during the latest trading day and fell 2.11% over the past week. However, it showed resilience with a 5.66% climb month-to-date.

Post-Earnings Price Action Review
Over the past three years, a strategy of purchasing Logitech shares following a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days has resulted in unfavorable returns. This approach yielded a -3.60% return, markedly underperforming the benchmark return of 79.26%. This reflects an excess return of -82.86%, with the strategy's compound annual growth rate (CAGR) at -0.77%, indicating substantial losses over the period. Although the strategy displayed a maximum drawdown of 0.00%, suggesting no further decline in the short term, overall performance was lackluster.

CEO Commentary
Johanna W. Faber, CEO & Director, expressed optimism about Logitech's first quarter of fiscal year 2026, noting a 5% growth in net sales driven by demand across key categories. She emphasized disciplined cost controls, achieving a 2% reduction in operating expenses, and highlighted a commitment to research and development, which accounted for 6% of sales. Faber stressed the importance of agility in responding to market conditions, affirming Logitech's ability to thrive during challenging times.

Guidance
Logitech anticipates net sales growth between 1% and 5% year-over-year in constant currency for Q2. The forecasted gross margin rate is expected to range between 41% and 42%, with non-GAAP operating income projected to be between $180 million and $200 million. The company foresees a negative tariff impact in Q2 between 200 and 300 basis points, offset by a positive price impact of approximately 200 basis points from price increases initiated in Q1.

Additional News
Logitech has recently made notable strides outside earnings metrics, including a significant $2 billion share repurchase program announced in March 2025, underscoring its commitment to returning value to shareholders. In June 2025, Logitech G expanded its partnership with McLaren Racing, enhancing the Logitech McLaren G Challenge, a premier sim racing tournament. Additionally, Logitech nominated Guy Gecht as the new Board of Directors Chairperson in June 2025, pending shareholder approval at the September AGM, marking a strategic leadership transition. These developments demonstrate Logitech's ongoing strategic initiatives and shareholder engagement efforts.