We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Logitech (LOGI) Down 4.6% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Logitech (LOGI - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Logitech due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Logitech International S.A. before we dive into how investors and analysts have reacted as of late.
Logitech reported second-quarter fiscal 2026 non-GAAP earnings of $1.45 per share, which beat the Zacks Consensus Estimate by 18.9%. Moreover, the bottom line increased 21% on a year-over-year basis.
In the second quarter of fiscal 2026, LOGI reported revenues of $1.19 billion, which topped the consensus mark by 1.1%. Compared with the year-ago quarter, the top line increased 6% on a reported basis and 4% on a constant currency basis.
Logitech’s Q2 Segment Details
Revenues from Keyboards & Combos rose 12% year over year to $235.9 million. Revenues from the Pointing Devices category grew 13% to $221.1 million, while Webcams increased 4% to $83.3 million.
Our model estimates for Keyboards & Combos, Pointing Devices and Webcams categories were pegged at $216.4 million, $205.5 million and $89.8 million, respectively.
Gaming revenues increased 8% year over year to $323.3 million, and Video Collaboration sales rose 5% to $167.7 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $311.3 million and $176.7 million, respectively.
Revenues from the Headsets product category decreased 7% to $43.5 million, while Other categories’ sales plunged 30% to $26.3 million. Tablet Accessories sales declined 1% to $85.1 million. Our model estimates for Headsets, Tablet Accessories and Other categories were pegged at $47 million, $94 million and $28.8 million, respectively.
Logitech’s Margins & Operating Metrics
The non-GAAP gross profit increased to approximately $520 million from $492.4 million reported in the year-ago quarter. However, the non-GAAP gross margin contracted 30 basis points (bps) from the prior-year quarter to 43.8%.
Non-GAAP operating expenses decreased 3.2% year over year to approximately $290 million. As a percentage of revenues, non-GAAP operating expenses contracted 250 bps to 24.4%.
Non-GAAP operating income increased 19.3% to $230 million from $192.8 million reported in the year-ago quarter. The operating margin expanded 210 basis points to 19.4%.
Logitech’s Liquidity and Shareholder Return
As of Sept. 30, 2025, LOGI’s cash and cash equivalents were $1.38 billion, down from the previous quarter’s $1.49 billion. The company generated $229 million in cash from operational activities in the second quarter and $354 million in the first half of fiscal 2026.
The company returned $340 million of cash to its shareholders through share repurchases and dividend payments during the second quarter and $461 million in the first half of fiscal 2026.
Logitech Initiates Strong Q3 Guidance
Logitech issued strong sales guidance for the third quarter of fiscal 2026. For the quarter, it projects revenues between $1.375 billion and $1.415 billion. The top-line guidance range suggests year-over-year growth of 3-6% on a reported basis and 1-4% on a constant currency basis.
Logitech projects non-GAAP operating profit in the range of $270-$290 million during the third quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 17.01% due to these changes.
VGM Scores
At this time, Logitech has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Logitech has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Logitech (LOGI) Down 4.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Logitech (LOGI - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Logitech due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Logitech International S.A. before we dive into how investors and analysts have reacted as of late.
Logitech's Q2 Earnings Surpass Estimates, Revenues Rise Y/Y
Logitech reported second-quarter fiscal 2026 non-GAAP earnings of $1.45 per share, which beat the Zacks Consensus Estimate by 18.9%. Moreover, the bottom line increased 21% on a year-over-year basis.
In the second quarter of fiscal 2026, LOGI reported revenues of $1.19 billion, which topped the consensus mark by 1.1%. Compared with the year-ago quarter, the top line increased 6% on a reported basis and 4% on a constant currency basis.
Logitech’s Q2 Segment Details
Revenues from Keyboards & Combos rose 12% year over year to $235.9 million. Revenues from the Pointing Devices category grew 13% to $221.1 million, while Webcams increased 4% to $83.3 million.
Our model estimates for Keyboards & Combos, Pointing Devices and Webcams categories were pegged at $216.4 million, $205.5 million and $89.8 million, respectively.
Gaming revenues increased 8% year over year to $323.3 million, and Video Collaboration sales rose 5% to $167.7 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $311.3 million and $176.7 million, respectively.
Revenues from the Headsets product category decreased 7% to $43.5 million, while Other categories’ sales plunged 30% to $26.3 million. Tablet Accessories sales declined 1% to $85.1 million. Our model estimates for Headsets, Tablet Accessories and Other categories were pegged at $47 million, $94 million and $28.8 million, respectively.
Logitech’s Margins & Operating Metrics
The non-GAAP gross profit increased to approximately $520 million from $492.4 million reported in the year-ago quarter. However, the non-GAAP gross margin contracted 30 basis points (bps) from the prior-year quarter to 43.8%.
Non-GAAP operating expenses decreased 3.2% year over year to approximately $290 million. As a percentage of revenues, non-GAAP operating expenses contracted 250 bps to 24.4%.
Non-GAAP operating income increased 19.3% to $230 million from $192.8 million reported in the year-ago quarter. The operating margin expanded 210 basis points to 19.4%.
Logitech’s Liquidity and Shareholder Return
As of Sept. 30, 2025, LOGI’s cash and cash equivalents were $1.38 billion, down from the previous quarter’s $1.49 billion. The company generated $229 million in cash from operational activities in the second quarter and $354 million in the first half of fiscal 2026.
The company returned $340 million of cash to its shareholders through share repurchases and dividend payments during the second quarter and $461 million in the first half of fiscal 2026.
Logitech Initiates Strong Q3 Guidance
Logitech issued strong sales guidance for the third quarter of fiscal 2026. For the quarter, it projects revenues between $1.375 billion and $1.415 billion. The top-line guidance range suggests year-over-year growth of 3-6% on a reported basis and 1-4% on a constant currency basis.
Logitech projects non-GAAP operating profit in the range of $270-$290 million during the third quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 17.01% due to these changes.
VGM Scores
At this time, Logitech has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Logitech has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.