Logitech's Q4 Earnings Surpass Estimates, Revenues Rise Y/Y

Logitech International S.A. LOGI reported fourth-quarter fiscal 2026 non-GAAP earnings of $1.13 per share, which beat the Zacks Consensus Estimate by 2.7%. The bottom line increased 22% on a year-over-year basis.

In the fourth quarter of fiscal 2026, LOGI reported revenues of $1.09 billion, which surpassed the consensus mark by 0.9%. Compared with the year-ago quarter, the top line increased 7% on a reported basis and 3% on a constant currency basis.

Logitech’s Q4 Segment Details

Revenues from Keyboards & Combos rose 2% year over year to $224.6 million. Revenues from the Pointing Devices category grew 8% to $200.9 million, while Webcams decreased 2% to $76.2 million.

Our model estimates for Keyboards & Combos, Pointing Devices and Webcams categories were pegged at $239 million, $206.3 million and $84.1 million, respectively.

Gaming revenues increased 12% year over year to $292.3 million, and Video Collaboration sales rose 13% to $161.4 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $272.8 million and $152.2 million, respectively.

Revenues from the Headsets product category increased 5% to $44.9 million, while Other categories’ sales plunged 6% to $18.9 million. Tablet Accessories sales increased 14% to $66.3 million. Our model estimates for Headsets, Tablet Accessories and Other categories were pegged at $42.8 million, $65.5 million and $19.8 million, respectively.

Logitech’s Margins & Operating Metrics

The non-GAAP gross profit increased 10.8% year over year to approximately $486.7 million. The non-GAAP gross margin expanded 130 basis points (bps) from the prior-year quarter to 44.8%.

Non-GAAP operating expenses increased 4.6% year over year to approximately $320 million. As a percentage of revenues, non-GAAP operating expenses contracted 80 bps to 21.6%.

Non-GAAP operating income increased 24.5% to $166.6 million from $133.5 million reported in the year-ago quarter. The operating margin expanded 210 basis points to 15.3%.

Logitech’s Liquidity and Shareholder Return

As of March 31, 2026, LOGI’s cash and cash equivalents were $1.74 billion, down from the previous quarter’s $1.82 billion. The company generated $203 million in cash from operational activities in the fourth quarter and $1.04 billion in fiscal 2026.

The company returned $280 million of cash to its shareholders through share repurchases during the fourth quarter. In fiscal 2026, the company returned approximately $768 million through share repurchases and dividend payments.

Logitech Initiates Q1 FY27 Guidance

For the first quarter of fiscal 2027, Logitech projects revenues between $1.19 billion and $1.22 billion. The top-line guidance range suggests year-over-year growth of 4-6% on a reported basis and 2-4% on a constant currency basis. The Zacks Consensus Estimate is pegged at $1.17 billion.

Logitech projects non-GAAP operating profit in the range of $195-$215 million during the first quarter of fiscal 2027.

LOGI’s Zacks Rank & Stocks to Consider

Currently, Logitech carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks ANET, Advanced Energy AEIS and Amphenol APH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Arista Networks have gained 29.9% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.54 per share, up by a penny over the past 30 days, indicating an increase of 18.8% year over year.

Shares of Advanced Energy have surged 65.1% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.37 per share, up by 5 cents over the past seven days, indicating a rise of 30.6% year over year.

Amphenol shares have jumped 1.2% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.62 per share, up by 30 cents over the past seven days, indicating an increase of 38.3% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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