Logitech (LOGN) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY27 reached $1.23 billion, up 7% year-over-year in USD and 5% in constant currency, marking the tenth consecutive quarter of growth, driven by Gaming, Pointing Devices, and Video Collaboration.

• Operational excellence, premium innovation, and B2B expansion supported results despite supply chain and geopolitical challenges.

• Results benefited from a $61 million tariff refund, but operational performance was strong even excluding this impact.

• Operating expenses increased due to higher marketing and R&D investments.

• New product launches and partnerships with major brands and influencers contributed to growth.

Financial highlights

• Net sales: $1,227.2 million (+7% YoY); constant currency sales growth was 5%.

• Gross margin: 49.8% (non-GAAP, including tariff refund), 44.8% (excluding refund), up 270 bps YoY; GAAP gross margin: 49.5%, up 780 bps YoY.

• Non-GAAP operating income: CHF 290 million (up 44% YoY, including refund); GAAP operating income: $258.6 million (up 59.6% YoY).

• Net income: $235.7 million (+61.4% YoY); diluted EPS: $1.63 (GAAP), $1.85 (non-GAAP).

• Cash flow from operations was $167 million; cash balance ended at $1.75 billion.

Outlook and guidance

• Q2 FY27 sales expected between $1,185–$1,220 million, with 0–3% YoY growth; gross margin around 44%.

• Q2 non-GAAP operating income projected at CHF 185–210 million; down YoY due to increased R&D and marketing investments.

• Supplier incident in late June 2026 expected to reduce Q2 net sales by ~$20 million and Q3 by up to $200 million; Q4 impact expected to be minimal.

• Full-year non-GAAP operating margin expected near the high end of the 15–18% target range.

• Long-term growth opportunities seen in AI integration, flexible work trends, and gaming expansion.