Logitech(US:LOGI)2026-01-27 21:10Financial Performance - Sales for Q3 Fiscal Year 2026 were $1.42 billion, representing a 6% increase in US dollars and a 4% increase in constant currency compared to the same quarter last year[3]. - GAAP gross margin improved to 43.2%, up 30 basis points year-over-year, while non-GAAP gross margin reached 43.5%, also up 30 basis points[3]. - GAAP operating income was $286 million, a 22% increase compared to Q3 of the prior year, with non-GAAP operating income at $312 million, up 17%[3]. - GAAP earnings per share (EPS) increased to $1.69, up 28% year-over-year, while non-GAAP EPS was $1.93, up 21%[3]. - Cash flow from operations for the quarter was $481 million, with a cash balance of $1.8 billion at the end of the quarter[3]. - Net income for Q3 2025 was $251,039,000, a 25.4% increase from $200,147,000 in Q3 2024[19]. - Total net sales for Q3 2025 reached $1,421,479,000, reflecting a 6% increase compared to $1,340,294,000 in Q3 2024[17]. - Gross profit under GAAP for Q3 2025 was $614,639,000, up from $574,441,000 in Q3 2024, resulting in a gross margin of 43.2%[19]. - Operating income under GAAP for Q3 2025 was $286,014,000, compared to $234,556,000 in Q3 2024, with an operating margin of 20.1%[19]. - Cash flows from operating activities for Q3 2025 totaled $480,532,000, an increase from $370,870,000 in Q3 2024[16]. - Cash and cash equivalents at the end of Q3 2025 were $1,817,820,000, compared to $1,502,832,000 at the end of Q3 2024[16]. - Non-GAAP net income for Q3 2025 was $287,020,000, compared to $241,490,000 in Q3 2024, reflecting a 19% increase[19]. Future Outlook - The financial outlook for Q4 FY26 projects sales between $1,070 million and $1,090 million, with expected sales growth of 6% to 8% in US dollars year-over-year[4]. - Non-GAAP operating income for Q4 FY26 is expected to be between $155 million and $165 million, contributing to an annual outlook of $900 million to $910 million[4]. - The company plans to continue focusing on product innovation and market expansion to drive future growth[21]. Operational Highlights - The company emphasized strong operational execution and disciplined cost management, leading to outstanding gross and operating margins despite a challenging environment[2]. - Logitech continues to focus on innovation with new products like the premium MX Master 4 mouse, contributing to broad-based growth across categories and regions[2]. - Restructuring charges (credits) are associated with employee terminations, facility closures, and early contract cancellations, impacting ongoing operating results[25]. - Losses (gains) on investments vary based on the performance of invested companies, including equity method investments and impairments[26]. Non-GAAP Measures - Non-GAAP income tax adjustments measure the tax effects of non-GAAP adjustments and non-recurring tax events[27]. - Non-GAAP financial measures should not be considered in isolation from GAAP measures, as they have inherent limitations[28]. - Logitech presents percentage sales growth in constant currency to show performance unaffected by currency fluctuations[29]. Balance Sheet - The company maintains a strong balance sheet with total assets of $4.1 billion and total liabilities of $1.76 billion as of December 31, 2025[15]. - Share-based compensation expense for Q3 2025 was $23,435,000, down from $26,193,000 in Q3 2024[20].