LOGI

Logitech (LOGI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This maker of keyboards, webcams and other computer accessories is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of -7.6%. Revenues are expected to be $1.21 billion, up 2.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.37% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Logitech, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.76%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Logitech will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Logitech would post earnings of $1.33 per share when it actually produced earnings of $1.85, delivering a surprise of +39.10%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Logitech doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Logitech International S.A. (LOGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Logitech (LOGI). Shares have lost about 2.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Logitech due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Logitech reported first-quarter fiscal 2027 non-GAAP earnings of $1.85 per share, up 47% year over year. The metric topped the Zacks Consensus Estimate by 39.1%. Revenues rose 7% to $1.23 billion and beat the consensus mark by 2.1%. The results reflected strong demand for premium pointing devices, gaming products and video collaboration solutions. Non-GAAP gross margin expanded 770 basis points to 49.8%, aided by $61 million in tariff refunds, favorable currency movements, product mix and cost reductions. Gaming revenues increased 12% year over year to $354.2 million, with constant-currency growth of 9%. The PRO X2 SUPERSTRIKE mouse supported gaming-mouse momentum, while the Americas and Asia Pacific delivered solid growth. Pointing Devices revenues climbed 16% to $227.3 million, or 14% in constant currency, driven by a shift toward premium products such as the MX Master 4. Video Collaboration sales advanced 11% to $185.3 million, extending demand from workplace customers. The company also gained about 220 basis points of share across personal workspace products. Keyboards & Combos revenues rose 2% to $227.8 million, as strength in the Americas offset weakness in the EMEA. Tablet Accessories sales slipped 2% to $89.4 million against a difficult prior-year comparison tied to a large education contract. Webcam revenues declined 9% to $76.6 million, while Headsets fell 3% to $44.1 million. Other-category revenues dropped 12% to $22.5 million, reflecting softness in mobile and PC speakers. Americas sales grew 11% in constant currency, led by double-digit gains in Gaming, Keyboards & Combos and Pointing Devices. Asia Pacific increased 5%, with China outperforming the broader region amid strong execution around the June 18 shopping festival. EMEA sales declined 4% as the Middle East conflict reduced regional growth by roughly 400 basis points. Even so, Logitech gained share in Europe despite subdued consumer and enterprise demand. Non-GAAP operating expenses increased 14% to $320.4 million, reflecting higher investments in sales and marketing and research and development. General & administrative expenses remained controlled at 2.8% of sales. Non-GAAP operating income surged 44% to $290 million. Excluding tariff refunds, operating income rose 14% to $229 million, showing that stronger mix and execution also supported profitability beyond the one-time benefit. Cash flow from operations increased to $166.7 million from $125 million a year earlier. Logitech ended the quarter with $1.75 billion in cash and cash equivalents, while inventories were $491.7 million. The company repurchased $113.6 million of shares during the quarter. Management also noted that channel inventory remained within the operating ranges seen since the start of fiscal 2025. For the second quarter of fiscal 2027, Logitech expects revenues between $1.19 billion and $1.22 billion, implying year-over-year growth of 0-3% on both a reported and constant-currency basis. Non-GAAP operating income is projected between $185 million and $210 million. The outlook includes an estimated $20 million revenue headwind from a semiconductor supplier shutdown. Based on limited information, management sees a potential impact of up to $200 million in the third quarter, with the disruption expected to be largely resolved by the fourth quarter. Logitech has not issued formal full-year revenue guidance. Excluding the supplier disruption, management said demand momentum would continue at roughly the first-quarter pace through the balance of fiscal 2027. The company still expects full-year non-GAAP operating margin to track near the high end of its 15-18% long-term target range. Strong underlying execution and the tariff refunds are expected to support that profitability level despite continued growth investments. It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -6.77% due to these changes. At this time, Logitech has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Logitech has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Logitech International S.A. (LOGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth underperformed internal expectations due to macro pressures on large Fortune 500 brands, particularly in the CPG and automotive sectors which represent 25% of platform spend. Management identified a 'consumer wealth bifurcation' where high-income consumers remain resilient while lower-income consumer softness forces some advertisers to prioritize low-cost media over high-value decisioned buying. Underperformance was partially attributed to internal execution gaps, prompting a significant overhaul of the leadership team with new C-suite hires from Amazon, Uber, and Logitech to drive operational discipline. Joint Business Plans (JBPs) emerged as a critical growth engine, with revenue from these structured partnerships growing at 6x the rate of overall revenue. The platform is seeing strong secular tailwinds in international markets, with EMEA and APAC growing nearly 30% year-to-date and China revenue increasing over 100%. Management maintains that their independent, objective DSP model is a strategic moat against walled gardens that prioritize owned-and-operated inventory over buyer outcomes. A shift in advertiser behavior toward 'programmatic guaranteed' and fixed-price deals is viewed by management as a shortsighted reaction to economic volatility that sacrifices long-term business outcomes. Q3 guidance assumes no meaningful improvement in the macro environment, reflecting limited visibility and a cautious stance on consumer-facing verticals. The company is transitioning critical workloads from public cloud to owned data centers to support AI workloads and drive long-term operating leverage, despite near-term expense increases. Product roadmap priorities are centered on the 'Zuma' platform upgrade, the 'Audience Unlimited' data subscription model, and a new measurement framework currently in alpha. Management plans to implement stricter investment discipline, aggressively funding high-priority growth initiatives while reducing resources in lower-impact areas through 2027. The emergence of LLMs and AI-driven search is expected to expand the addressable market by creating new advertising surfaces and increasing competition for traditional search budgets. Significant leadership transition completed with the appointment of a new CFO, COO, and Chief Commercial Officer to scale the organization for a $1 trillion TAM. Platform operations expenses increased 12% (excluding stock-based compensation) due to infrastructure optimization and AI tool implementation. Management acknowledged a temporary 'public dispute' regarding agency negotiations but confirmed that partnerships, specifically with Publicis, have stabilized. Tariffs and geopolitical uncertainty in the Middle East were explicitly cited as external risks impacting the CPG and automotive advertising budgets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Focus is on upgrading the Kokai platform via the 'Zuma' launch to improve AI usability and platform efficiency. Scaling 'Audience Unlimited' to more customers to lower data CPMs and improve household reach efficiency. Aggressively pursuing 'enterprise Kokai' deals and winning back lost customers through a dedicated growth team that has grown its book 250% year-over-year. Management argues AI is the 'essence' of a DSP rather than a disruptor, as it enables the processing of 20 million ad opportunities per second. Objectivity is positioned as the primary differentiator against walled gardens (Amazon/Google) that have inherent conflicts of interest when selling their own inventory. Agentic AI is viewed as a massive opportunity to automate complex workflows rather than a threat to the decisioning model. Management reiterated that they do not aim to be the cheapest platform but the most effective, with take rates remaining stable over the last decade. New products like Audience Unlimited use a subscription-based percentage to simplify pricing and remove data cost as a barrier to entry. The value proposition relies on 'consumer surplus,' where the platform adds more mathematical value to a campaign than the fee it extracts.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Logitech International (SWX:LOGN) is back in focus after its latest quarterly report, which combined higher reported sales and earnings with a warning that a semiconductor supplier shutdown may constrain upcoming revenue. See our latest analysis for Logitech International. The recent supplier warning came just as Logitech International’s share price reached CHF87.82, with a 10.35% 1 month share price return and 18.98% 1 year total shareholder return suggesting that momentum has been building rather than fading. If the semiconductor story has you thinking about where else growth and risk may be priced in, this is a good moment to size up 34 robotics and automation stocks. Logitech International shares have run hard into this earnings update, yet the stock still trades below both analyst targets and an intrinsic value estimate. Is the recent move already rich, or is there still a valuation gap? Against Logitech International’s last close at CHF87.82, the most widely followed narrative points to a fair value of CHF91.83, suggesting a modest pricing gap that hinges on how its peripherals and gaming exposure play out over time. Read the complete narrative. Curious what sits behind that CHF91.83 figure for Logitech International? The narrative leans on steady top line expansion, firmer margins, and a future earnings multiple that assumes the market keeps rewarding this profile. The exact growth path and valuation bridge are all laid out in the full story. Result: Fair Value of CHF91.83 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Logitech International’s story could look very different if higher hardware prices curb demand or if lower cost competitors put pressure on pricing in core peripherals. Find out about the key risks to this Logitech International narrative. The mixed tone in this Logitech International update makes it even more important to look under the hood yourself and decide how compelling the story feels. If you want a quick snapshot of what the market is optimistic about right now, start by checking the 4 key rewards Do not stop at a single stock when tools exist to broaden your watchlist. Treat this as a chance to stack the odds a little more in your favour. Zero in on potential mispriced opportunities early by scanning screener containing 521 high quality undiscovered gems before the wider market catches on. Strengthen your core holdings by checking companies highlighted in the solid balance sheet and fundamentals stocks screener (419 results) that pair resilience with clearer financial footing. Dial back risk without stepping away from the market by reviewing 302 resilient stocks with low risk scores that may offer a steadier ride. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LOGN.SW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Logitech International S.A. LOGI reported first-quarter fiscal 2027 non-GAAP earnings of $1.85 per share, up 47% year over year. The metric topped the Zacks Consensus Estimate by 39.1%. Revenues rose 7% to $1.23 billion and beat the consensus mark by 2.1%. The results reflected strong demand for premium pointing devices, gaming products and video collaboration solutions. Non-GAAP gross margin expanded 770 basis points to 49.8%, aided by $61 million in tariff refunds, favorable currency movements, product mix and cost reductions. Gaming revenues increased 12% year over year to $354.2 million, with constant-currency growth of 9%. The PRO X2 SUPERSTRIKE mouse supported gaming-mouse momentum, while the Americas and Asia Pacific delivered solid growth. Pointing Devices revenues climbed 16% to $227.3 million, or 14% in constant currency, driven by a shift toward premium products such as the MX Master 4. Video Collaboration sales advanced 11% to $185.3 million, extending demand from workplace customers. The company also gained about 220 basis points of share across personal workspace products. Logitech International S.A. price-consensus-eps-surprise-chart | Logitech International S.A. Quote Keyboards & Combos revenues rose 2% to $227.8 million, as strength in the Americas offset weakness in the EMEA. Tablet Accessories sales slipped 2% to $89.4 million against a difficult prior-year comparison tied to a large education contract. Webcam revenues declined 9% to $76.6 million, while Headsets fell 3% to $44.1 million. Other-category revenues dropped 12% to $22.5 million, reflecting softness in mobile and PC speakers. Americas sales grew 11% in constant currency, led by double-digit gains in Gaming, Keyboards & Combos and Pointing Devices. Asia Pacific increased 5%, with China outperforming the broader region amid strong execution around the June 18 shopping festival. EMEA sales declined 4% as the Middle East conflict reduced regional growth by roughly 400 basis points. Even so, Logitech gained share in Europe despite subdued consumer and enterprise demand. Non-GAAP operating expenses increased 14% to $320.4 million, reflecting higher investments in sales and marketing and research and development. General & administrative expenses remained controlled at 2.8% of sales. Non-GAAP operating income surged 44% to $290 million. Excluding tariff refunds, operating income rose 14% to $229 million, showing that stronger mix and execution also supported profitability beyond the one-time benefit. Cash flow from operations increased to $166.7 million from $125 million a year earlier. Logitech ended the quarter with $1.75 billion in cash and cash equivalents, while inventories were $491.7 million. The company repurchased $113.6 million of shares during the quarter. Management also noted that channel inventory remained within the operating ranges seen since the start of fiscal 2025. For the second quarter of fiscal 2027, Logitech expects revenues between $1.19 billion and $1.22 billion, implying year-over-year growth of 0-3% on both a reported and constant-currency basis. Non-GAAP operating income is projected between $185 million and $210 million. The outlook includes an estimated $20 million revenue headwind from a semiconductor supplier shutdown. Based on limited information, management sees a potential impact of up to $200 million in the third quarter, with the disruption expected to be largely resolved by the fourth quarter. Logitech has not issued formal full-year revenue guidance. Excluding the supplier disruption, management said demand momentum would continue at roughly the first-quarter pace through the balance of fiscal 2027. The company still expects full-year non-GAAP operating margin to track near the high end of its 15-18% long-term target range. Strong underlying execution and the tariff refunds are expected to support that profitability level despite continued growth investments. Logitech’s Zacks Rank and Stocks to Consider Some better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Applied Materials AMAT and Cisco Systems CSCO, 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 Analog Devices have rallied 34.9% year to date. The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating a 59.4% year-over-year increase. Shares of Applied Materials have skyrocketed 85.4% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past 30 days, suggesting a rise of 28.9% year over year. Cisco Systems shares have surged 50.1% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, calling for an increase of 12.3% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Logitech International S.A. (LOGI) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales: $1.2 billion, up 7% in US dollars and 5% in constant currency. Non-GAAP Operating Income: $290 million, up 44% year over year; excluding tariff refund, $229 million, up 14% year over year. Tariff Refunds: $61 million received. Gross Margin: 49.8% including tariff refunds; 44.8% excluding refunds, expanding 270 basis points year over year. Cash Flow from Operations: Increased more than 30% year over year. Cash Balance: $1.75 billion. Share Repurchases: $115 million returned to shareholders. Pointing Devices Net Sales Growth: 14% year over year. Video Collaboration Net Sales Growth: 9% year over year. Gaming Net Sales Growth: 9% year over year. AMR Region Sales Growth: 11%. Asia Pacific Sales Growth: 5%. EMEA Net Sales Decline: 4% due to Middle East conflict. Non-GAAP Operating Expenses: $320 million or 26.1% of net sales, up 150 basis points year over year. Non-GAAP Operating Income Rate: 18.7%, up 110 basis points year over year. Second Quarter Revenue Growth Expectation: 0% to 3% in constant currency. Second Quarter Gross Margin Rate Expectation: Approximately 44%. Second Quarter Non-GAAP Operating Income Expectation: $185 million to $210 million. Warning! GuruFocus has detected 4 Warning Signs with LOGI. Is LOGI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Logitech International SA (NASDAQ:LOGI) reported a 5% net sales growth in constant currency, marking the 10th consecutive quarter of growth. The company saw strong performance in gaming, video collaboration, and pointing devices, with the MX Master 4 and PRO X2 SUPERSTRIKE gaming mouse becoming top-selling products. Video collaboration net sales grew 9% in constant currency, with Logitech's solutions used by over 70% of Fortune 500 companies. Logitech gained significant market share in Europe despite a soft broader market, showcasing geographic diversity and operational excellence. The company maintained a strong balance sheet with a cash balance of $1.75 billion and returned $115 million to shareholders through share repurchases. Logitech faces challenges from a serious incident at a semiconductor supplier, impacting their ability to meet demand and potentially affecting up to $200 million in revenue in the third quarter. Webcams and headsets sales declined due to soft end markets in EMEA, with the Middle East conflict impacting net sales by approximately 400 basis points. The company anticipates a slowdown in sales growth for the second quarter, with an expected growth of 0% to 3% in constant currency. Higher promotional spending, particularly in EMEA, partially offset gross margin gains from favorable currency exchange rates and product mix. Non-GAAP operating expenses increased, driven by higher investments in sales, marketing, and R&D, impacting operating income growth. Q: Can you tell us more about the risk of pull-forward demand seen in Q1 and the slowdown in sales growth for Q2? A: Hanneke Faber, CEO, explained that there was very little to no pull-forward demand in Q1, particularly in video conferencing. The price increase in May did not significantly impact Q1, and the positive effects will be seen in the next quarter. The slowdown in Q2 is due to a supplier incident impacting sales by approximately $20 million, but the underlying demand remains strong. Q: How are you managing the supplier incident affecting semiconductor components, and what is the expected impact on future quarters? A: Hanneke Faber, CEO, stated that the incident at a semiconductor supplier's facility is expected to be resolved by Q4. The company is working on mitigation plans, including leveraging secondary suppliers. The impact is estimated to be $20 million in Q2 and up to $200 million in Q3, but demand is expected to remain strong. Q: What is the current status of channel inventory, and how does it relate to the supplier incident? A: Matteo Anversa, CFO, noted that channel inventory is in good shape, with strong sell-through. The company has a robust balance sheet allowing it to maintain sufficient inventory levels to mitigate supply chain disruptions. The impact of the supplier incident is limited in Q2 due to existing inventory. Q: Can you elaborate on the strong performance in pointing devices and the sustainability of this growth? A: Hanneke Faber, CEO, highlighted that the growth in pointing devices was driven by premium innovation, such as the MX Master 4, and enhanced marketing efforts. The company is focusing on social media and social commerce, which supports sustained growth in this category. Q: How are B2B customers responding to AI budgets, and what is the outlook for video conferencing? A: Hanneke Faber, CEO, mentioned that AI is a tailwind for video conferencing, as companies need to enable meeting rooms with video capabilities to utilize AI tools effectively. The market for video conferencing is robust, with less than 25% of meeting rooms globally being video-enabled, indicating significant growth potential. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Strong First Quarter Marks Tenth Consecutive Quarter of Growth LAUSANNE, Switzerland & SAN JOSE, Calif., July 28, 2026--(BUSINESS WIRE)--SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the first quarter of Fiscal Year 2027. Sales were $1.23 billion, up 7 percent in US dollars and 5 percent in constant currency, compared to Q1 of the prior year. GAAP gross margin was 49.5 percent, up 780 basis points, compared to Q1 of the prior year. Non-GAAP gross margin was 49.8 percent, up 770 basis points, compared to Q1 of the prior year. These numbers include $61 million in tariff refunds. GAAP operating income was $259 million, up 60 percent, compared to Q1 of the prior year. Non-GAAP operating income was $290 million, up 44 percent, compared to Q1 of the prior year. These numbers include $61 million in tariff refunds. GAAP earnings per share (EPS) was $1.63, up 66 percent compared to Q1 of the prior year. Non-GAAP EPS was $1.85, up 47 percent compared to Q1 of the prior year. Cash flow from operations was $167 million. The quarter-ending cash balance was $1.75 billion. The Company returned $114 million of cash to shareholders through share repurchases. "We delivered a strong first quarter against a dynamic backdrop," said Hanneke Faber, Logitech chief executive officer. "Superior innovation and stronger brand marketing drove strong growth across core categories, including double-digit growth in Pointing Devices." "Our teams demonstrated excellent operational discipline to start the fiscal year," said Matteo Anversa, Logitech chief financial officer. "While our reported results benefited from tariff refunds, our operational performance was impressive even excluding these refunds, with non-GAAP operating income growing 14 percent year over year. Strong gross margin resilience allowed us to exceed our operating income outlook and generate robust cash flow while funding our growth investments." Outlook Our financial outlook for the second quarter of Fiscal Year 2027: Longer-term Perspectives While Logitech is not issuing a formal full-year FY27 outlook, demand momentum from Q1 is expected to carry into the remainder of the year. However, in late June 2026, a serious incident in the manufacturing facilities of one of Logitech’s semiconductor suppliers resulted in its temporary closure, which is likely to impact the Company’s ability to effectively meet future demand. The Company is working on multiple mitigation plans. The midpoint of the Q2 outlook contemplates growth despite a Q2 headwind of approximately $20 million in net sales caused by this supplier incident. For Q3, based on limited available information, the negative impact of the supplier incident is estimated to be up to $200 million in net sales. The incident is estimated to be largely resolved by Q4, which would mean little to no impact to Q4 results. As for profitability, the Company continues to expect full-year non-GAAP operating margin to track near the high end of the 15-18 percent long-term target range, helped by strong operating performance and this quarter's tariff refunds. Financial Results Videoconference and Webcast Logitech will hold a financial results videoconference to discuss the results for Q1 Fiscal Year 2027 on Tuesday, July 28, 2026 at 1:30 p.m. Pacific Daylight Time (PDT) and 10:30 p.m. Central European Summer Time (CEST). A livestream of the event will be available on the Logitech corporate website at https://ir.logitech.com. This press release and the Q1 Fiscal Year 2027 Shareholder Letter are also available there. Use of Non-GAAP Financial Information and Constant Currency To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures in this press release, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, restructuring charges (credits), net, loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under "Supplemental Financial Information" after the tables below and posted to our website at https://ir.logitech.com. Logitech also presents percentage sales growth in constant currency ("cc"), a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales. Logitech believes this information, used together with the GAAP financial information, will help investors to evaluate its current period performance and trends in its business. With respect to the Company’s outlook for non-GAAP operating income and non-GAAP operating margin, most of the excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to the GAAP amounts has been provided for the Q2 FY27 outlook and expectations for FY27 non-GAAP operating margin. Public Dissemination of Certain Information Recordings of Logitech’s earnings videoconferences and certain events Logitech participates in or hosts with members of the investment community are posted on the company’s investor relations website at https://ir.logitech.com. Additionally, Logitech provides notifications of news or announcements regarding its operations and financial performance, including its filings with the Securities and Exchange Commission (SEC), investor events, and press and earnings releases as part of its investor relations website. Logitech intends to use its investor relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Logitech’s corporate governance information also is available on its investor relations website. About Logitech Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating and gaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech and its other brands, including Logitech G, at www.logitech.com or company blog. This press release contains forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three months ended June 30, 2026; Q2 FY27 outlook, expectations for FY27 non-GAAP operating margin, including for net sales and non-GAAP operating income, demand and growth expectations, the impact of the incident in the manufacturing facilities of one of our semiconductor suppliers, and related assumptions. The forward-looking statements in this press release are subject to risks and uncertainties that could cause Logitech’s actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: macroeconomic and geopolitical conditions and other factors and their impact, for example the resilience of overall consumer demand, B2B and IT spending levels, changes in inflation levels and monetary policies, governments’ fiscal policies, and geopolitical conflicts; our expectations regarding our expense discipline efforts, including the timing thereof; changes in secular trends that impact our business; if our product offerings, marketing activities and investment prioritization decisions do not result in the sales, profitability or profitability growth we expect, or when we expect it; if we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories; issues relating to development and use of artificial intelligence; if we do not successfully execute on our growth opportunities or our growth opportunities are more limited than we expect; the effect of demand variability, supply shortages and other supply chain challenges affecting the availability and price of required components and materials; the effect of logistics challenges, including disruptions in logistics; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; if we are not able to maintain and enhance our brands; if our products and marketing strategies fail to separate our products from competitors’ products; if we do not efficiently manage our spending; our expectations regarding our restructuring efforts, including the timing thereof; if there is a deterioration of business and economic conditions in one or more of our sales regions or product categories, or significant fluctuations in exchange rates; changes in trade regulations, policies and agreements and the imposition of tariffs that affect our products or operations, including the ultimate treatment and any changes to tariff refunds; if we do not successfully execute on strategic acquisitions and investments; risks associated with acquisitions; the effect of changes to our effective income tax rates; and the ability and timing to resolve the impact of the incident in the supplier manufacturing facilities. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech’s periodic filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 and other reports filed with the SEC, available at www.sec.gov, under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forward-looking statements to reflect new information or events or circumstances occurring after the date of this press release. Note that unless noted otherwise, comparisons are year over year. Logitech and other Logitech marks are trademarks or registered trademarks of Logitech Europe S.A. and/or its affiliates in the U.S. and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s website at www.logitech.com. *Note: These preliminary results for the three months ended June 30, 2026 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q. (A) Non-GAAP Financial Measures To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of financial measures, both GAAP and non-GAAP, in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations. While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting both our performance and our cash-generating potential, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enable investors to more fully understand trends in our current and future performance. In assessing our business during the quarter ended June 30, 2026 and prior periods presented, we excluded items in the following general categories, each of which are described below: Share-based compensation expense. We believe that providing non-GAAP measures excluding share-based compensation expense, in addition to the GAAP measures, allows for a more transparent comparison of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine share-based compensation expense. We believe that excluding share-based compensation expense enhances our ability and the ability of investors to understand the impact of non-cash share-based compensation on our operating results and to compare our results against the results of other companies. Amortization of intangible assets. We incur intangible asset amortization expense, primarily in connection with our acquisitions of various businesses and technologies. The amortization of purchased intangibles varies depending on the level of acquisition activity. We exclude these various charges in budgeting, planning and forecasting future periods and we believe that providing the non-GAAP measures excluding these various non-cash charges, as well as the GAAP measures, provides additional insight when comparing our gross profit, operating expenses, and financial results from period to period. Acquisition-related costs. We incurred expenses in connection with our acquisitions which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition-related costs include certain incremental expenses incurred to effect a business combination. We believe that providing the non-GAAP measures excluding these costs, as well as the GAAP measures, assists our investors because such costs are not reflective of our ongoing operating results. Restructuring charges (credits), net. These charges (credits) are associated with restructuring plans and will vary based on the initiatives in place during any given period. Restructuring charges may include costs related to employee terminations, facility closures and early cancellation of certain contracts as well as other costs resulting from our restructuring initiatives. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such charges (credits) are not reflective of our ongoing operating results. Loss (gain) on investments. We recognize losses (gains) related to our investments in various companies, which vary depending on the operational and financial performance of the companies in which we invest. These amounts include our losses (earnings) on equity method investments as well as investment impairments and losses (gains) resulting from sales or other events related to our investments. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such losses (gains) are not reflective of our ongoing operations. Non-GAAP income tax adjustment. Non-GAAP income tax adjustment primarily measures the income tax effect of non-GAAP adjustments excluded above as well as the income tax impact of non-recurring deferred taxes, tax settlements, and other non-routine tax events, the determination of which is based upon the nature of the underlying items. Each of the non-GAAP financial measures described above, and used in this press release, should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company’s financial results for the foreseeable future. We compensate for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information. Additional Supplemental Financial Information - Constant Currency In addition, Logitech presents percentage sales growth in constant currency to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales. (LOGIIR) View source version on businesswire.com: https://www.businesswire.com/news/home/20260728725086/en/ Contacts Editorial Contacts: Kate Beerkens, Director of Investor Relations - [email protected] Bruno Rodriguez, Head of Corporate Communications - [email protected]