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LOGITECH INTERNATIONAL S.A. (LOGI)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 sales were $1.19B (+6% YoY USD; +4% cc), GAAP gross margin 43.4% (-20bps YoY), non-GAAP gross margin 43.8% (-30bps YoY), and non-GAAP operating income $230M (+19% YoY) .
  • Non-GAAP diluted EPS was $1.45, up 21% YoY, and materially beat Wall Street consensus $0.95*; revenue was in line at $1.186B vs $1.185B* (EPS beat driven by pricing and cost actions offsetting tariffs) .
  • Management guided Q3 FY26 net sales to $1.375–$1.415B (+3%–6% YoY USD; +1%–4% cc), non-GAAP OI to $270–$290M, and gross margin to 42%–43% (balanced against U.S. consumer/gaming softness and tariff uncertainty) .
  • Cash from operations was $229M (100% of operating income), quarter-end cash $1.38B; $340M returned to shareholders via dividend and buybacks—supportive of capital return narrative .

What Went Well and What Went Wrong

What Went Well

  • APAC strength and B2B outperformance: APAC grew 19% cc with sustained double-digit China growth; B2B demand outpaced consumer, including double-digit growth in video collaboration in EMEA .
  • Premium portfolio momentum: Double-digit growth in Pointing Devices and Keyboards & Combos, strong high-end gaming (Pro >25%, Sim >10%); MX Master 4 launched to “record-breaking” start and deep brand engagement via LogiPlay events .
  • Tariff mitigation and margin discipline: Price actions and manufacturing diversification fully offset tariff impact; non-GAAP gross margin was flattish YoY despite higher promotions (pricing +150bps offset tariffs -150bps) .

What Went Wrong

  • Americas/gaming softness: Americas down ~4% with U.S. consumer uncertainty; gaming market declined mid-single digits in the region, with entry-level products more sensitive to price increases .
  • Promotional intensity: Elevated targeted promotions to support entry-level offerings and holiday visibility weighed against otherwise positive product cost reductions .
  • Persistent macro/tariff uncertainty: Management highlighted ongoing risks from tariffs, export restrictions, and inflation; Q3 bookends hinge on U.S. consumer health and tariff structure .

Financial Results

Key Metrics vs Prior Quarter and Prior Year

MetricQ4 FY25Q1 FY26Q2 FY26
Revenue ($USD Millions)$1,010.4 $1,147.7 $1,186.1
GAAP Diluted EPS ($)$0.96 $0.98 $1.15
Non-GAAP Diluted EPS ($)$0.93 $1.26 $1.45
GAAP Gross Margin %43.1% 41.7% 43.4%
Non-GAAP Gross Margin %43.5% 42.1% 43.8%
GAAP Operating Income ($MM)$105.9 $162.1 $191.3
Non-GAAP Operating Income ($MM)$133.5 $201.8 $230.0
Cash from Operations ($MM)$129.7 $125.0 $228.8

YoY Comparison (Q2 FY26 vs Q2 FY25)

MetricQ2 FY25Q2 FY26
Revenue ($USD Millions)$1,116.0 $1,186.1
GAAP Diluted EPS ($)$0.95 $1.15
Non-GAAP Diluted EPS ($)$1.20 $1.45
GAAP Gross Margin %43.6% 43.4%
Non-GAAP Gross Margin %44.1% 43.8%
GAAP Operating Income ($MM)$160.9 $191.3
Non-GAAP Operating Income ($MM)$192.8 $230.0
Cash from Operations ($MM)$166.0 $228.8

Consensus vs Actual (Q2 FY26)

MetricConsensusActual
Revenue ($USD Millions)$1,185.4*$1,186.1
Primary EPS ($)$0.95*$1.45
Revenue - # of Estimates9*—
EPS - # of Estimates6*—

Values retrieved from S&P Global.*

Segment Breakdown

CategoryQ1 FY26 Net Sales ($MM)Q2 FY26 Net Sales ($MM)Q2 YoY Growth
Gaming$315.9 $323.3 +8%
Keyboards & Combos$222.5 $235.9 +12%
Pointing Devices$195.8 $221.1 +13%
Video Collaboration$166.7 $167.7 +5%
Webcams$84.4 $83.3 +4%
Tablet Accessories$91.2 $85.1 (1%)
Headsets$45.5 $43.5 (7%)
Other$25.7 $26.3 (30%)
Total$1,147.7 $1,186.1 +6%

KPIs

KPIQ1 FY26Q2 FY26
OpEx % of Net Sales (Non-GAAP)24.5% 24.4%
Operating Income Margin (Non-GAAP)17.6% 19.4%
Cash & Cash Equivalents ($MM)$1,487.8 $1,375.8
Shareholder Returns ($MM)$122 buybacks $340 dividend+buybacks

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales ($MM)Q3 FY26N/A$1,375–$1,415 New
Sales Growth YoY (USD)Q3 FY26N/A3%–6% New
Sales Growth YoY (cc)Q3 FY26N/A1%–4% New
Non-GAAP Operating Income ($MM)Q3 FY26N/A$270–$290 New
Gross Margin %Q3 FY26N/A42%–43% New
Q2 FY26 Net Sales ($MM)Q2 FY26$1,145–$1,190 $1,186.1 Actual Achieved within range
Q2 FY26 Non-GAAP OI ($MM)Q2 FY26$180–$200 $230.0 Actual Above range

Earnings Call Themes & Trends

TopicQ4 FY25 (Prior-2)Q1 FY26 (Prior-1)Q2 FY26 (Current)Trend
Tariffs/MacroWithdrew FY26 outlook due to tariff uncertainty Expect 200–300bps tariff headwind; price +200bps offset; GM guided 41%–42% Price/diversification fully offset tariffs; GM flattish YoY Mitigation improving; caution persists
Manufacturing diversificationDiversified footprint highlighted Plan to reduce U.S. China-origin share from 40% to 10% by CY25 end On track to 10%; China+5 footprint emphasized Execution progressing
B2B momentumBroad-based growth; VC accretive margins B2B outpaced consumer; VC +13% YoY B2B outpaced consumer; VC +3% cc in Q2 Consistent strength
Premium product performanceFY25 strength in core categories High-end gaming and premium PWS growth MX Master 4 “record-breaking”; Pro/Sim strong Premium mix rising
Americas gaming—Americas -4%; pricing negotiations impact U.S. gaming down mid-single digits; entry-level more elastic Softness; cautious outlook
Promotions—Higher promotions in Q1 Targeted promos; holiday visibility Controlled, targeted
China for China—Regaining share in China gaming China-leading growth; local G316 keyboard Positive momentum

Management Commentary

  • “We announced 16 new products… MX Master 4… off to a record-breaking start” — Hanneke Faber, CEO .
  • “Non-GAAP operating income of $230M, up 19% YoY… negative impact of tariffs entirely offset by price and diversification actions” — Matteo Anversa, CFO .
  • “We are on track to reduce our share of U.S. products originating from China to 10% by the end of this calendar year” — Hanneke Faber .
  • “APAC grew 19% year over year in constant currency, led by sustained double-digit growth in China… Americas was down 4%” — Matteo Anversa .
  • “Channel inventories are in a good spot… sell-out outpaced sell-in in the Americas” — Matteo Anversa .

Q&A Highlights

  • U.S. consumer/gaming softness and pricing elasticity: Entry-level gaming more sensitive; trends improved through Q2; Q3 bookends depend on U.S. consumer strength .
  • Gross margin mechanics: Price offsets tariffs; product cost reductions; targeted promotions; FX tailwinds; GM guide 42%–43% for Q3 .
  • OpEx discipline: Non-GAAP OpEx 24.4% of sales; G&A reductions fund R&D and marketing; Q3 OpEx % typically lower seasonally .
  • China strategy and innovation: China for China products (G316 keyboard), premium mix gains; PWS share growth in China .
  • Capital allocation: Priority on organic investment and dividend growth; selective M&A; ongoing buybacks to avoid “lazy balance sheet” .

Estimates Context

  • Q2 FY26 non-GAAP EPS $1.45 vs consensus $0.95*, a significant beat; revenue $1,186.1M vs consensus $1,185.4M*, essentially in line .
  • Coverage depth: 6 EPS estimates and 9 revenue estimates; target price consensus $125.93* (10 estimates) .
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • Pricing power and manufacturing diversification are effectively neutralizing tariff headwinds; margin resilience supports sustained non-GAAP OI expansion into Q3 .
  • Mix shift to premium (MX, Pro/Sim) and B2B (VC, enterprise headsets) is accretive to margins and cash generation; APAC/China momentum offsets U.S. consumer softness .
  • Americas gaming weakness is the key near-term watch item; targeted promotions and holiday slate (incl. major game releases) could drive sequential improvement .
  • Q3 guide implies continued mid-single-digit top-line and strong profitability (GM 42%–43%, non-GAAP OI $270–$290M); execution against bookends will be a stock narrative driver .
  • Cash returns remain robust ($340M in Q2) with a pristine balance sheet ($1.38B cash), providing optionality for selective M&A and opportunistic buybacks .
  • Track segment KPIs: sustained double-digit growth in Pointing Devices/Keyboards and premium gaming; monitor headsets/tablet accessories stabilization .
  • Near-term trading: EPS beat vs consensus and reaffirmed margin discipline are positive; sensitivity to U.S. gaming and tariff policy headlines remains the key risk/reward driver .