Q2 Fiscal Year 2027
Filed Oct 27, 2026AlphAI · Earnings readLOGI · Q2 Fiscal Year 2027 · ended September 30, 2026
Logitech Announces Q2 Fiscal Year 2027 Results Second Quarter Marks Company's Eleventh Consecutive Quarter of Growth
✓Solid quarter
Q2 sales grew 3 percent year over year, with GAAP gross margin up 150 basis points and GAAP operating income up 5 percent. Growth in Gaming and Video Collaboration supported results, while Q3 sales guidance calls for a year-over-year decline to flat result in constant currency because of a semiconductor supplier incident.
Revenue
$1.22B
3 % y/y
Gaming, three months ended September 30, 2026
$349M
8 % y/y
Gross margin · GAAP
44.9 %
up 150 basis points y/y
EPS · non-GAAP
$ 1.51
up 4 percent y/y
Q3 FY27 outlook outlook
$1,360 - $1,430 million
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $1.22B | – | 3 % |
| Net sales growth, three months ended September 30, 2026, constant currencynon-GAAP | 2 percent | – | 2 percent in constant currency |
| Gross profit, three months ended September 30, 2026GAAP | $547.0M | – | – |
| Gross margin, three months ended September 30, 2026GAAP | 44.9 % | – | up 150 basis points |
| Gross profit, three months ended September 30, 2026non-GAAP | $551.0M | – | – |
| Gross margin, three months ended September 30, 2026non-GAAP | 45.2 % | – | up 140 basis points |
| Marketing and selling expense, three months ended September 30, 2026GAAP | $219.5M | – | – |
| Research and development expense, three months ended September 30, 2026GAAP | $82.72M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $42.98M | – | – |
| Amortization of intangible assets and acquisition-related costs, three months ended September 30, 2026GAAP | $927K | – | – |
| Restructuring charges, net, three months ended September 30, 2026GAAP | $309K | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $346.5M | – | – |
| Total operating expenses, three months ended September 30, 2026non-GAAP | $320.1M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $200.6M | – | up 5 percent |
| Operating margin, three months ended September 30, 2026GAAP | 16.5 % | – | – |
| Operating income, three months ended September 30, 2026non-GAAP | $230.9M | – | up 0.4 percent |
| Operating margin, three months ended September 30, 2026non-GAAP | 18.9 % | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $218.5M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | $38.46M | – | – |
| Net income, three months ended September 30, 2026GAAP | $180.0M | – | – |
| Net income, three months ended September 30, 2026non-GAAP | $216.7M | – | – |
| Diluted net income per share, three months ended September 30, 2026GAAP | $ 1.25 | – | up 9 percent |
| Diluted net income per share, three months ended September 30, 2026non-GAAP | $ 1.51 | – | up 4 percent |
| Basic net income per share, three months ended September 30, 2026GAAP | $ 1.26 | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $163.6M | – | – |
| Purchases of property, plant and equipment, three months ended September 30, 2026GAAP | −$14.72M | – | – |
| Net sales, six months ended September 30, 2026GAAP | $2.45B | – | 5 % |
| Gross margin, six months ended September 30, 2026GAAP | 47.2 % | – | – |
| Gross margin, six months ended September 30, 2026non-GAAP | 47.5 % | – | – |
| Operating income, six months ended September 30, 2026GAAP | $459.1M | – | – |
| Operating income, six months ended September 30, 2026non-GAAP | $521.3M | – | – |
| Net income, six months ended September 30, 2026GAAP | $415.7M | – | – |
| Net income, six months ended September 30, 2026non-GAAP | $485.7M | – | – |
| Diluted net income per share, six months ended September 30, 2026GAAP | $ 2.88 | – | – |
| Diluted net income per share, six months ended September 30, 2026non-GAAP | $ 3.36 | – | – |
| Net cash provided by operating activities, six months ended September 30, 2026GAAP | $330.3M | – | – |
| Purchases of property, plant and equipment, six months ended September 30, 2026GAAP | −$31.51M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gaming, three months ended September 30, 2026Growth in Gaming supported topline growth. | $349.3M | – | 8 % |
| Keyboards & Combos, three months ended September 30, 2026Not separately stated. | $246.4M | – | 4 % |
| Pointing Devices, three months ended September 30, 2026Not separately stated. | $230.4M | – | 4 % |
| Video Collaboration, three months ended September 30, 2026Growth in Video Collaboration supported topline growth. | $188.4M | – | 12 % |
| Webcams, three months ended September 30, 2026Not separately stated. | $75.65M | – | (9) % |
| Tablet Accessories, three months ended September 30, 2026Not separately stated. | $57.96M | – | (32) % |
| Headsets, three months ended September 30, 2026Not separately stated. | $46.05M | – | 6 % |
| Other, three months ended September 30, 2026Other primarily consists of mobile speakers and PC speakers. | $24.64M | – | (6) % |
| Gaming, six months ended September 30, 2026Gaming includes streaming services revenue generated by Streamlabs. | $703.5M | – | 10 % |
| Keyboards & Combos, six months ended September 30, 2026Not separately stated. | $474.2M | – | 3 % |
| Pointing Devices, six months ended September 30, 2026Not separately stated. | $457.7M | – | 10 % |
| Video Collaboration, six months ended September 30, 2026Growth in Video Collaboration supported topline growth. | $373.7M | – | 12 % |
| Webcams, six months ended September 30, 2026Not separately stated. | $152.2M | – | (9) % |
| Tablet Accessories, six months ended September 30, 2026Not separately stated. | $147.4M | – | (16) % |
| Headsets, six months ended September 30, 2026Not separately stated. | $90.19M | – | 1 % |
| Other, six months ended September 30, 2026Other primarily consists of mobile speakers and PC speakers. | $47.17M | – | (9) % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q3 FY27 outlook outlook
- Revenue$1,360 - $1,430 million
- NoteSales growth/decline (in US dollars, year over year): -4% - 1%
- NoteSales growth/decline (in constant currency, year over year): -5% - 0%
- NoteNon-GAAP operating income: $220 - $255 million
- NoteEstimated negative impact to net sales from the supplier incident of approximately $70 to $80 million.
- NoteThe Company expects the impact of the supplier incident to be largely resolved by Q4.
Capital returns
- The Company returned $406 million of cash to shareholders in the quarter through its annual dividend and share repurchases.
- Payment of cash dividends, three months ended September 30, 2026: $ (235,343) (in thousands); prior year: $ (233,059) (in thousands).
- Purchases of registered shares, three months ended September 30, 2026: $ (170,846) (in thousands); prior year: $ (106,606) (in thousands).
- Payment of cash dividends, six months ended September 30, 2026: $ (235,343) (in thousands); prior year: $ (233,059) (in thousands).
- Purchases of registered shares, six months ended September 30, 2026: $ (284,462) (in thousands); prior year: $ (228,263) (in thousands).
What drove it
- Sales were up 3 percent in US dollars and 2 percent in constant currency compared to Q2 of the prior year.
- Growth in the Americas, Video Collaboration and Gaming supported topline growth.
- The Company launched 19 new products for the holiday quarter.
- GAAP gross margin was 44.9 percent, up 150 basis points compared to Q2 of the prior year.
- The Company cited strategic priorities, operational discipline and rigorous cost management.
Concerns
- One semiconductor supplier had a serious incident in its manufacturing facility, resulting in its closure at the end of June.
- The supplier facility opened in September and began ramping up production, but current capacity is below the Company's required level.
- Q3 constant-currency sales are expected to decline between –5% and 0% year over year.
- The estimated negative impact to Q3 net sales from the supplier incident is approximately $70 to $80 million.
- Q2 sales declined in Webcams, Tablet Accessories and Other.
What to watch
- Whether the semiconductor supplier resumes full production by the end of the calendar year.
- Whether the impact of the supplier incident is largely resolved by Q4.
- Q3 FY27 sales within the $1,360 - $1,430 million outlook range.
- Q3 FY27 non-GAAP operating income within the $220 - $255 million outlook range.
- Sales performance in Gaming, Video Collaboration, Webcams and Tablet Accessories.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $ 1,507,647 (in thousands); March 31, 2026: $ 1,741,546 (in thousands).
- Accounts receivable, net at September 30, 2026: $ 750,692 (in thousands); March 31, 2026: $ 505,867 (in thousands).
- Inventories at September 30, 2026: $ 556,790 (in thousands); March 31, 2026: $ 489,948 (in thousands).
- Total assets at September 30, 2026: $ 3,919,881 (in thousands); March 31, 2026: $ 3,848,588 (in thousands).
- Total liabilities at September 30, 2026: $ 1,756,632 (in thousands); March 31, 2026: $ 1,637,194 (in thousands).
- Total shareholders’ equity at September 30, 2026: $ 2,163,249 (in thousands); March 31, 2026: $ 2,211,394 (in thousands).
- Net cash provided by operating activities, three months ended September 30, 2026: $ 163,561 (in thousands); prior year: $ 228,837 (in thousands).
- Net cash used in investing activities, three months ended September 30, 2026: $ (19,327) (in thousands); prior year: $ (16,194) (in thousands).
- Net cash used in financing activities, three months ended September 30, 2026: $ (384,797) (in thousands); prior year: $ (323,387) (in thousands).
- Net decrease in cash and cash equivalents, three months ended September 30, 2026: $ (242,032) (in thousands); prior year: $ (112,015) (in thousands).
- Net cash provided by operating activities, six months ended September 30, 2026: $ 330,269 (in thousands); prior year: $ 353,882 (in thousands).
- Net cash used in investing activities, six months ended September 30, 2026: $ (36,474) (in thousands); prior year: $ (34,294) (in thousands).
- Net cash used in financing activities, six months ended September 30, 2026: $ (525,450) (in thousands); prior year: $ (457,820) (in thousands).
- Net decrease in cash and cash equivalents, six months ended September 30, 2026: $ (233,899) (in thousands); prior year: $ (127,398) (in thousands).
Analysis
Logitech reported Q2 FY27 net sales of $ 1,218,838 (in thousands), up 3 percent year over year in US dollars and 2 percent in constant currency. The company characterized the period as its eleventh consecutive quarter of growth. Gaming revenue rose 8 percent and Video Collaboration rose 12 percent, while Keyboards & Combos and Pointing Devices each rose 4 percent. The offset was weakness in Webcams, Tablet Accessories and Other, which declined (9) percent, (32) percent and (6) percent, respectively.
Management, verbatim
We delivered our eleventh consecutive quarter of growth and launched 19 new products for the holiday quarter. Growth in the Americas, Video Collaboration and Gaming supported our topline growth. Our strategic priorities and operational discipline continue to deliver.
Hanneke Faber, Logitech chief executive officer
This Q2 marks another strong performance from our teams. Our gross margins were very strong, driving non-GAAP operating income well ahead of our outlook. We continued to execute rigorous cost management while funding targeted investments that will drive growth. Our commitment to a disciplined capital allocation model allowed us to return $406 million to shareholders, in the form of our annual dividend and share repurchases.
Matteo Anversa, Logitech chief financial officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported income statement, cash flow and segment metrics.
- Free cash flow.
- Debt balance or debt maturities.
- Q3 FY27 GAAP operating income guidance and a reconciliation of Q3 FY27 non-GAAP operating income guidance to GAAP.
- Q3 FY27 gross margin, operating expense and tax-rate guidance.
- Previous-release outlook for comparison with actual Q2 FY27 results.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.