Logitech 2026 Q1 Earnings Resilient Performance as Net Income Grows 2.9%

Logitech (LOGI) reported its fiscal 2026 Q1 earnings on Jul 30th, 2025. The company posted revenue of $1.15 billion, marking a 5.5% increase compared to the same quarter last year. Logitech's net income grew 2.9% year over year, reflecting strategic priorities and strong demand across segments. Despite this positive financial performance, Logitech's stock price experienced a decline of 5.06% on the latest trading day. The company maintained its guidance for Q2 FY26, expecting sales growth of 3% to 7% in US dollars.

Revenue
Logitech saw a revenue boost across its diverse segments. Gaming led the charge, generating $315.88 million, while Keyboards & Combos brought in $222.49 million. Pointing Devices followed with $195.78 million, and Video Collaboration added $166.72 million to the total. Webcams contributed $84.37 million, Tablet Accessories generated $91.23 million, and Headsets provided $45.52 million. The Other category, comprising mobile and PC speakers, accounted for $25.72 million. Overall, Logitech reached a total net sales figure of $1.15 billion.

Earnings/Net Income
Logitech's earnings per share (EPS) climbed 6.5%, reaching $0.99 in Q1 2026 from $0.93 in the previous year. This growth indicates sustained earnings momentum. Net income rose to $146.01 million, demonstrating a 2.9% increase from $141.83 million in Q1 2025. The EPS performance reflects strong profitability trends.

Post-Earnings Price Action Review
The strategy of purchasing LOGI shares following revenue misses and holding for 30 days yielded a return of 32.51%, notably underperforming the benchmark return of 87.61%. The approach displayed a Sharpe ratio of 0.16, indicating moderate risk-adjusted returns. Notably, the strategy encountered no significant losses, as evidenced by a maximum drawdown of 0% during the backtest period. Despite its underperformance compared to the benchmark, the strategy maintained stability without major losses. This method reflects a cautious approach, aiming for moderate gains while avoiding substantial downturns. In summary, while the strategy did not achieve high returns, it provided a stable outcome without significant losses over the tested period.

CEO Commentary
"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. Growth was driven by strategic priorities and strong demand, with superior innovation fostering growth across all key categories. The company experienced robust performance in both B2B and consumer channels, especially in Asia Pacific. Matteo Anversa, Chief Financial Officer, noted that through a focus on offense, cost control, and agility, Logitech achieved mid-single-digit sales growth year-over-year, accompanied by an expansion in non-GAAP operating margin.

Guidance
Logitech expects Q2 FY26 sales to be between $1,145 million and $1,190 million, representing year-over-year growth of 3% to 7% in US dollars and 1% to 5% in constant currency. The company projects non-GAAP operating income to range from $180 million to $200 million. Despite uncertainties in the operating environment, Logitech remains focused on delivering solid financial performance in the upcoming quarter.

Additional News
In March 2025, Logitech announced a significant stock buyback plan worth $2 billion over the next three years, expanding its existing program by $600 million. The company reaffirmed its fiscal 2025 performance outlook, projecting sales growth between 5.4% and 6.4%, and highlighted potential fiscal 2026 sales of $4.53 billion to $4.71 billion, reflecting 1% to 3% growth. Logitech is enhancing its enterprise customer direct sales efforts and expanding product offerings in education and healthcare sectors. Notably, new products include a computer mouse with a prompt generator button for AI platform connectivity. Logitech remains committed to maintaining market leadership in its core categories and exploring new verticals and adjacent markets, leveraging AI for business growth.