Executive Summary

Q1 FY26 delivered mid-single-digit growth with sales of $1.15B (+5% YoY), non-GAAP EPS of $1.26 (+12% YoY), and non-GAAP operating income of $202M (+11% YoY). Both revenue and EPS significantly beat Wall Street consensus, driven by resilient demand, B2B strength (VC +13% YoY), and disciplined OpEx control . Consensus: revenue $1.13B*, EPS $0.79*.
Gross margin compressed modestly (non-GAAP 42.1%, -120bps YoY) due to tariffs (~-100bps), higher promotions, and lapping prior-year inventory reserve releases; partially offset by +50bps price benefit. Non-GAAP operating margin expanded 80bps YoY to 17.6% on leverage and lower G&A .
Guidance for Q2 FY26: sales $1.145–$1.190B (+3–7% YoY; +1–5% cc), gross margin 41–42%, and non-GAAP OI $180–$200M. Tariffs expected to be a 200–300bps headwind, largely offset by ~200bps pricing tailwind .
Stock reaction catalysts: visible beat vs consensus; evidence of pricing power and tariff mitigation; continued VC momentum and APAC strength (+15% YoY), with watchpoints on North America (-4% YoY) and consumer response to U.S. price increases .

What Went Well and What Went Wrong

What Went Well

Strong beat vs consensus: revenue $1.148B vs $1.128B*; non-GAAP EPS $1.26 vs $0.79*. Management highlighted resilient demand and execution across regions and channels .
B2B and VC outperformance: Video Collaboration +13% YoY; enterprise demand outpaced consumer; VC margins are accretive to company average .
Operating discipline: Non-GAAP OpEx fell 2% YoY to 24.5% of sales (from 26.5%); CFO emphasized G&A cuts and product cost reductions, expanding non-GAAP OI margin by 80bps .

Management quotes:

“Superior innovation drove growth in all key categories. We grew robustly both in our B2B and consumer channels... with notably strong performance in Asia Pacific.” — CEO Hanneke Faber .
“We delivered mid-single-digit sales growth year over year, with an expansion in non-GAAP operating margin of 80 basis points.” — CFO Matteo Anversa .

What Went Wrong

Gross margin pressure: Non-GAAP GM 42.1% (-120bps YoY) on tariffs (~-100bps net of +50bps price) and higher promotions; lapping prior-year reserve release added ~-50bps pressure .
North America softness: -4% YoY, impacted by temporary pause during U.S. price negotiations, causing select SKU out-of-stocks; consumer elasticity yet to be observed .
Gaming affected by price negotiation “noise” and higher competition in U.S.; while demand +6% sell-through, category faced more share sensitivity short-term post price increases .

Financial Results

Metric	Q3 FY25	Q4 FY25	Q1 FY26
Revenue ($USD Billions)	$1.34	$1.01	$1.15
GAAP EPS ($)	$1.32	$0.96	$0.98
Non-GAAP EPS ($)	$1.59	$0.93	$1.26
GAAP Gross Margin (%)	42.9%	43.1%	41.7%
Non-GAAP Gross Margin (%)	43.2%	43.5%	42.1%
GAAP Operating Income ($USD Millions)	$234.6	$105.9	$162.1
Non-GAAP Operating Income ($USD Millions)	$265.9	$133.5	$201.8
GAAP OI Margin (%)	17.5%	10.5%	14.1%
Non-GAAP OI Margin (%)	19.8%	13.2%	17.6%

Estimates comparison and guidance context:

Metric	Q1 FY26	Q2 FY26
Revenue (Consensus vs Actual, $USD Billions)	Cons: $1.13*	Cons: $1.19*
	Actual: $1.15	Guidance: $1.145–$1.190
Primary EPS (Consensus vs Actual, $)	Cons: $0.79*	Cons: $0.95*
	Actual: $1.26	Company did not guide EPS (guided OI)

Segment breakdown (Net Sales):

Category ($USD Millions)	Q1 FY25	Q1 FY26	YoY Change
Gaming	$309.5	$315.9	+2%
Keyboards & Combos	$215.3	$222.5	+3%
Pointing Devices	$189.9	$195.8	+3%
Video Collaboration	$147.0	$166.7	+13%
Webcams	$72.9	$84.4	+16%
Tablet Accessories	$78.5	$91.2	+16%
Headsets	$44.2	$45.5	+3%
Other	$30.7	$25.7	-16%
Total	$1,088.2	$1,147.7	+5%

KPIs and operating drivers:

KPI	Q1 FY26
Cash from Operations ($USD Millions)	$125.0
Cash & Equivalents ($USD Billions)	$1.49
Share Repurchases ($USD Millions)	$122
Non-GAAP OpEx (% of Sales)	24.5%
APAC YoY Growth	+15%
EMEA YoY Growth	+9%
North America YoY	-4%
Tariff Impact on GM (Q1)	~-100bps; net -50bps after price
Price Benefit on GM (Q1)	+50bps

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Outcome	Change
Sales ($USD Millions)	Q1 FY26	$1,100–$1,150	Actual: $1,148	Met high end
Non-GAAP Operating Income ($USD Millions)	Q1 FY26	$155–$185	Actual: $201.8	Above range
Sales ($USD Millions)	Q2 FY26	N/A	$1,145–$1,190	Initiated
Sales Growth YoY (US$)	Q2 FY26	N/A	3–7%	Initiated
Sales Growth YoY (cc)	Q2 FY26	N/A	1–5%	Initiated
Non-GAAP Operating Income ($USD Millions)	Q2 FY26	N/A	$180–$200	Initiated
Non-GAAP Gross Margin (%)	Q2 FY26	N/A	41–42%	Initiated

Earnings Call Themes & Trends

Topic	Q3 FY25	Q4 FY25	Q1 FY26	Trend
Tariffs/Mitigation	Not a major headwind; GM expanded 90bps YoY	Withdrew FY26 outlook; Q1 tariff ~200bps, potential 500bps w/o pre-April inventory; targeted U.S. pricing announced	Q1 tariff ~-100bps net of +50bps price; Q2 tariff -200–300bps offset by ~+200bps price	Managing impact via pricing/diversification; net GM headwind 0–100bps
Supply Chain Diversification	Broad footprint across 6 countries; China-for-China in motion	Plan to reduce U.S.-bound China-origin from 40% to ~10% by end CY25	“Well on track” to 10%; agility emphasized	Execution progressing
B2B/Video Collaboration	Solid; services and education growing	Enterprise demand growth mid-single digit	VC +13% YoY; accretive margins; B2B demand outpaced consumer	Strengthening
Gaming	Near pandemic-high sales; strong Pro/MX	Double-digit FY25 growth; China-for-China program	U.S. “noise” from price negotiations; demand +6% sell-through; China share regained in May	Mixed near-term; positive medium-term
Regional Trends	APAC high double-digit growth; EMEA/Américas low-single-digit	EMEA 9% FY growth; cautious B2B late in Q4	APAC +15%, EMEA +9%, NA -4% (pricing pause)	APAC/EMEA strong; NA recovering
R&D/Innovation	39 launches FY25; premium segments strong	Cost/value engineering drove GM expansion	Nine launches; AI launch keys; Vision Pro Muse; innovation recognized by Fortune	Sustained pipeline

Management Commentary

CEO: “Our growth was driven by our strategic priorities... we executed well across all regions — with notably strong performance in Asia Pacific.”
CFO: “Operating expenses declined 2% year-over-year... non-GAAP operating income [margin] increased by 80 basis points.”
CEO on agility: “Reduce the share of U.S. products originating from China from 40% in April to just 10% by the end of this calendar year, and we are well on track to do so.”
CFO on Q2 guardrails: “Tariffs... 200–300 basis points negative... offset by 200 basis points of positive price... gross margin rate 41–42%.”
CEO on B2B/VC: “Double-digit net sales growth in video conferencing... Logitech for business demand outpaced our consumer business.”

Q&A Highlights

Pricing elasticity: U.S. price increases added +50bps to GM in Q1; full benefit expected in Q2; consumer impact still being assessed. Temporary in-stock issues during negotiation depressed Americas sell-in; inventories recovered for back-to-school/holidays .
Video Collaboration sustainability: Double-digit growth; some pre-tariff pull-forward in NA; VC margins accretive; underlying demand strong .
Inventory strategy: Proactively pulled inventory pre-tariffs; supported higher-end GM; maintained ~40 CCD; intend to continue opportunistic pulls leveraging strong balance sheet .
Regional performance: APAC +15% YoY (China particularly strong); EMEA +9%; North America -4% due to pricing pause, expected normalization post implementation .
Gross margin drivers: Q1 GM decline driven by ~-100bps tariffs, +50bps price, ~-50bps lapping reserve release; Q2 GM guided 41–42% with tariffs net of price 0 to -100bps .

Estimates Context

Q1 FY26 vs consensus: revenue $1.148B vs $1.128B*; non-GAAP EPS $1.26 vs $0.79* — bold beat driven by VC strength, APAC growth, and cost control. Management: demand mid-single-digit; pricing and diversification mitigated tariffs .
Q2 FY26 guidance vs consensus: sales $1.145–$1.190B vs $1.185B* — guidance in line to slightly conservative; GM 41–42% guided vs tariff headwind of 200–300bps offset by ~+200bps price .

Values retrieved from S&P Global.*

Key Takeaways for Investors

Strong operational beat: revenue and EPS materially above consensus; operating leverage intact despite tariff headwinds — supports near-term positive sentiment and potential estimate revisions upward .
Pricing power and mitigation credible: Q2 setup includes ~200bps pricing tailwind offsetting tariff headwinds; watch for elasticities in North America but inventories normalized post negotiations .
Mix upgrade via B2B/VC: accretive VC margins and double-digit growth signal durable profitability; continued services and education momentum add resilience .
APAC/China momentum: APAC +15% YoY; regained gaming share in China in May; supportive for category growth into 2H .
GM trajectory: Near-term GM 41–42% as guided; net tariff impact expected 0 to -100bps after price/diversification actions; promotions a modest headwind .
Capital returns and balance sheet: $122M buybacks in Q1; $1.49B cash; consistent repurchase cadence with a $2B 3-year target reiterated at Investor Day .
Near-term trading lens: Expect focus on Q2 pricing realization, NA demand normalization, and VC/B2B order visibility; any further tariff clarity or exemptions would be a positive catalyst .

Notes: We searched for an Item 2.02 8‑K for Q1 FY26 but did not find a standalone filing; analysis relies on the Q1 FY26 earnings press release and full call transcript – –, plus prior-quarter press releases/transcripts for trend context – – –.

LOGITECH INTERNATIONAL S.A. (LOGI)·Q1 2026 Earnings Summary