Logitech's Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

Core Insights - Logitech International S.A. reported second-quarter fiscal 2026 non-GAAP earnings of $1.45 per share, exceeding the Zacks Consensus Estimate by 18.9% and reflecting a 21% year-over-year increase [1][9] - The company achieved revenues of $1.19 billion in the second quarter, surpassing the consensus mark by 1.1% and showing a 6% increase compared to the same quarter last year [1][9] Revenue Breakdown - Revenues from Keyboards & Combos rose 12% year over year to $235.9 million, while Pointing Devices grew 13% to $221.1 million, and Webcams increased 4% to $83.3 million [2] - Gaming revenues increased 8% year over year to $323.3 million, and Video Collaboration sales rose 5% to $167.7 million [3] - Headsets revenues decreased 7% to $43.5 million, Other categories' sales plunged 30% to $26.3 million, and Tablet Accessories sales declined 1% to $85.1 million [4] Margins and Operating Metrics - Non-GAAP gross profit increased to approximately $520 million from $492.4 million in the prior year, although the non-GAAP gross margin contracted by 30 basis points to 43.8% [5] - Non-GAAP operating expenses decreased 3.2% year over year to approximately $290 million, with operating expenses as a percentage of revenues contracting 250 basis points to 24.4% [5] - Non-GAAP operating income rose 19.3% to $230 million, with the operating margin expanding 210 basis points to 19.4% [6] Liquidity and Shareholder Return - As of September 30, 2025, Logitech's cash and cash equivalents were $1.38 billion, down from $1.49 billion in the previous quarter [7] - The company generated $229 million in cash from operational activities in the second quarter and returned $340 million to shareholders through share repurchases and dividends [7] Guidance - Logitech issued strong sales guidance for the third quarter of fiscal 2026, projecting revenues between $1.375 billion and $1.415 billion, higher than the Zacks Consensus Estimate of $1.35 billion [8][10] - The guidance suggests year-over-year growth of 3-6% on a reported basis and 1-4% on a constant currency basis, with projected non-GAAP operating profit in the range of $270-$290 million [10]