Logitech (LOGI.US) spends $2bn on stock buyback, reiterates 2025 guidance

Logitech (LOGI.US) announced on Wednesday that it will repurchase $2 billion worth of stock over the next three years and increase its existing buyback program by $600 million. The company also reiterated its performance expectations for 2025. Logitech expects sales in fiscal 2026 to be between $4.53 billion and $4.71 billion, representing potential growth of 1% to 3% in dollar terms. The Swiss-US multinational had previously said it expected its 2025 sales to grow 5.4% to 6.4% to $4.54 billion to $4.57 billion. Logitech raised its full-year performance expectations in late January after strong sales and profits ahead of the key holiday season. The company presented the data at an investor day in San Jose, California, and announced its long-term goal of achieving 7% to 10% annual sales growth, maintaining a gross margin above 40% under non-GAAP accounting, and maintaining an operating margin between 15% and 18%. "We maintain our leadership in core categories, have a clear strategy to solidify this advantage, and have credible plans to expand into new verticals and adjacent markets, and we see AI as a multiplier for business growth," CEO Hanneke Faber said. Logitech's sales had dipped after the pandemic-fueled boom, but have since recovered and are now focused on expanding product sales into education and healthcare, among other areas, to broaden its traditional consumer base, including home computer users, gamers and enterprise customers. Logitech plans to step up its direct sales efforts to enterprise customers. Recent new products include computer mice with a button that connects directly to AI platforms such as ChatGPT.