Logitech (LOGN) Q1 2026 earnings summary

Executive summary

• Net sales increased 5% year-over-year to $1.15 billion, driven by robust demand and innovation across key categories and regions, especially Asia Pacific and EMEA, offsetting a decline in the Americas.

• Profitability improved, with GAAP net income rising to $146.0 million and GAAP EPS up 7% to $0.98; non-GAAP EPS was $1.26, up 12% year-over-year.

• Operating cash flow was $125 million, and $122 million was returned to shareholders via share repurchases.

• Continued focus on long-term strategies: innovation, disciplined cost control, and agility in operations.

• Maintained strong liquidity with $1.49 billion in cash and no outstanding borrowings under a $750 million credit facility.

Financial highlights

• Net sales for Q1 FY26 were $1,147.7 million, up from $1,088.2 million in Q1 FY25, with all key categories growing.

• GAAP gross margin was 41.7%, down 110 bps year-over-year; non-GAAP gross margin was 42.1%, down 120 bps, impacted by tariffs and higher promotions, partially offset by price increases.

• Operating income was $162.1 million (GAAP), up from $153.5 million year-over-year; non-GAAP operating income was $202 million, up 11% year-over-year.

• Operating expenses declined to 24.5% of net sales (down from 26.5%).

• Diluted EPS was $0.98, up from $0.92 year-over-year.

Outlook and guidance

• Q2 FY26 net sales expected between $1,145 million and $1,190 million, representing 3%–7% year-over-year growth in US dollars and 1%–5% in constant currency.

• Q2 gross margin rate guided between 41%-42%; non-GAAP operating income expected between $180M-$200M.

• Tariff impact in Q2 expected to be 200-300 bps negative, offset by 200 bps positive from price increases.

• Longer-term gross margin trajectory remains uncertain due to macro volatility and evolving tariff policy.

• Board recommended a cash dividend of CHF 1.26 per share for fiscal year 2025.