- **Revenue Growth**: 4% YoY in Q2, driven by B2B (+double digits) and APAC (+19% YoY). Gaming up 5% YoY, PC gaming double-digit growth.
- **Product Innovation**: MX Master 4, McLaren Racing gear, and 16 new products launched, with Logi WORK/PLAY events reaching 200M people.
- **Financial Strength**: $230M non-GAAP operating income (+19% YoY), 24.4% operating expense ratio, $230M cash flow, $340M shareholder returns.
- **Q3 Outlook**: 1-4% YoY growth, cautious on U.S. gaming recovery, but optimistic on holiday demand with Battlefield 6 and promotions.
- **Tariff Resilience**: 150bps tariff impact fully offset by pricing/diversification, manufacturing diversification reducing China reliance to 10% by end-2025.

**【CEO Summary Section】**
- Q2 2026 revenue grew 4% YoY in constant currency, driven by B2B demand and APAC growth (+19% YoY). Gaming sales rose 5% YoY, with PC gaming up double digits.
- Launched 16 new products, including MX Master 4 (record-breaking start), PRO X2 SuperStrike, and McLaren Racing collection. Logi WORK/PLAY events reached 200M people globally.
- China manufacturing diversification reduced U.S. product reliance from China to 10% by end-2025. Gross margin offset tariffs via pricing and cost reductions.
- Q3 outlook: 1-4% YoY revenue growth, cautious on U.S. gaming recovery, but optimistic on holiday demand for Battlefield 6 and promotions.

**【CFO Financial Commentary】**
- Non-GAAP operating income $230M (+19% YoY), driven by 3% YoY decline in operating expenses (24.4% of sales vs. 26.9% prior year).
- Gross margin 43.8% (flat YoY), with $150M tariff impact offset by pricing and diversification. Operating cash flow $230M, returning $340M to shareholders via dividends/buybacks.
- Q3 guidance: $270-290M non-GAAP operating income, 42-43% gross margin, assuming tariffs unchanged.

**【Q&A Key Highlights】**
- **U.S. Gaming Softness**: Q2 Americas gaming down mid-single digits, but trends improved late quarter. Cautious optimism for holiday recovery, with Battlefield 6 and targeted promotions.
- **B2B Momentum**: Logitech for Business at 40% of sales, up double digits YoY with premium solutions like Rally Board 65. Education vertical strong.
- **China Strategy**: G316 gaming keyboard (China-only) and MX Master 4 drove share gains. Inventory healthy, sell-through > sell-in in key regions.
- **M&A Update**: No material M&A activity, prioritizing organic growth and dividends over buybacks.
- **Tariff Mitigation**: 150bps tariff impact offset by pricing/diversification. Manufacturing diversification on track to reduce China reliance.

Logitech International S.A. (LOGI) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LOGI

LOGI fundamentals

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