Logitech(LOGI) - 2026 Q1 - Quarterly Results

Financial Highlights & Management Commentary Logitech reported strong Q1 FY2026 results with sales up 5% to $1.15 billion and non-GAAP operating income growing 11% to $202 million, driven by innovation and robust demand - Management attributes the strong quarterly performance to superior innovation, robust demand in B2B and consumer channels, and excellent execution across all regions[2] - The company returned $122 million in cash to shareholders through share repurchases during the quarter[3] Q1 FY2026 Key Financial Metrics (YoY) | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Sales | $1.15 billion | +5% (USD & Constant Currency) | | GAAP Gross Margin | 41.7% | -110 bps | | Non-GAAP Gross Margin | 42.1% | -120 bps | | GAAP Operating Income | $162 million | +6% | | Non-GAAP Operating Income | $202 million | +11% | | GAAP EPS | $0.98 | +7% | | Non-GAAP EPS | $1.26 | +12% | | Cash Flow from Operations | $125 million | - | | Quarter-ending Cash | $1.5 billion | - | Business Outlook The company projects Q2 FY2026 sales between $1.145 billion and $1.190 billion, with non-GAAP operating income ranging from $180 million to $200 million Q2 FY2026 Outlook | Metric | Guidance Range | | :--- | :--- | | Sales | $1,145 - $1,190 million | | Sales Growth (USD, YoY) | 3% - 7% | | Sales Growth (Constant Currency, YoY) | 1% - 5% | | Non-GAAP Operating Income | $180 - $200 million | Preliminary Consolidated Financial Statements This section presents unaudited GAAP condensed consolidated financial statements for Q1 FY2026, detailing the company's financial position and performance Condensed Consolidated Statements of Operations Q1 FY2026 net sales reached $1.148 billion (+5%), with GAAP operating income at $162.1 million (+6%) and diluted EPS at $0.98 (+7%) Q1 Statement of Operations Highlights (in thousands, except per share) | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Net Sales | $1,147,703 | $1,088,217 | | Gross Profit | $478,962 | $466,258 | | Operating Income | $162,094 | $153,499 | | Net Income | $146,015 | $141,833 | | Diluted EPS | $0.98 | $0.92 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $3.74 billion, total liabilities $1.56 billion, and cash and cash equivalents $1.49 billion Key Balance Sheet Items (in thousands) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,487,822 | $1,503,205 | | Total Assets | $3,742,963 | $3,538,504 | | Total Liabilities | $1,555,711 | $1,411,084 | | Total Shareholders' Equity | $2,187,252 | $2,127,420 | Condensed Consolidated Statements of Cash Flows Q1 FY2026 operating cash flow was $125.0 million, a decrease from prior year, with $134.4 million used in financing activities, mainly for share repurchases Q1 Cash Flow Summary (in thousands) | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Net cash provided by operating activities | $125,045 | $176,029 | | Net cash used in investing activities | ($18,100) | ($15,359) | | Net cash used in financing activities | ($134,433) | ($145,134) | Supplemental Financial Information This section provides supplemental financial details, including net sales by product category, GAAP to non-GAAP reconciliation, and share-based compensation expense Net Sales by Product Category Sales growth was driven by Video Collaboration (+13%), Webcams (+16%), and Tablet Accessories (+16%), with Gaming as the top revenue category at $315.9 million Net Sales by Product Category (in thousands) | Product Category | Q1 FY2026 Sales | Q1 FY2025 Sales | Change YoY | | :--- | :--- | :--- | :--- | | Gaming | $315,875 | $309,475 | 2% | | Keyboards & Combos | $222,492 | $215,333 | 3% | | Pointing Devices | $195,780 | $189,946 | 3% | | Video Collaboration | $166,716 | $147,042 | 13% | | Webcams | $84,374 | $72,904 | 16% | | Tablet Accessories | $91,227 | $78,539 | 16% | | Headsets | $45,523 | $44,236 | 3% | | Other | $25,716 | $30,742 | (16)% | | Total Net Sales | $1,147,703 | $1,088,217 | 5% | GAAP to Non-GAAP Reconciliation Non-GAAP operating income increased 11% to $201.8 million, with non-GAAP diluted EPS at $1.26 (+12%), adjusted for share-based compensation, amortization, and restructuring charges Q1 Operating Income Reconciliation (in thousands) | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Operating income - GAAP | $162,094 | $153,499 | | Share-based compensation expense | $32,828 | $23,405 | | Amortization of intangible assets | $4,795 | $5,145 | | Restructuring charges, net | $2,042 | $386 | | Operating income - Non-GAAP | $201,759 | $182,435 | Q1 Diluted EPS Reconciliation | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Diluted EPS - GAAP | $0.98 | $0.92 | | Diluted EPS - Non-GAAP | $1.26 | $1.13 | Share-Based Compensation Expense Total share-based compensation expense for Q1 FY2026 was $32.8 million, primarily driven by Marketing and selling ($13.9 million) and General and administrative ($10.2 million) Share-Based Compensation Expense by Function (in thousands) | Expense Category | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Cost of goods sold | $2,380 | $2,598 | | Marketing and selling | $13,930 | $11,851 | | Research and development | $6,351 | $5,739 | | General and administrative | $10,167 | $3,217 | | Total | $32,828 | $23,405 | Notes on Financial Reporting This section explains the use of non-GAAP financial measures and constant currency calculations, along with disclaimers for forward-looking statements and associated risks - The company uses non-GAAP financial measures, excluding items like share-based compensation, amortization of intangibles, and restructuring charges, to facilitate historical comparisons and provide investors with additional insight into performance[6][20][21] - Sales growth is also presented in constant currency, a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates[6][29] - The press release contains forward-looking statements, including the Q2 FY26 outlook, which are subject to various risks and uncertainties such as macroeconomic conditions, consumer demand, and supply chain challenges[10]