Logitech beats quarterly estimates, boosted by business demand
The Swiss-U.S. company said its non-GAAP operating income rose to $202 million in the three months to the end of June, beating the $167.2 million forecast by analysts in a consensus gathered by Visible Alpha.
First-quarter sales increased to $1.15 billion, exceeding expectations of $1.11 billion.
Logitech has been experiencing increasing demand for its computer mice, keyboards, audiovisual equipment for meeting rooms and webcams from business users re-equipping their offices.
It sells around two-fifths of its products to businesses, schools and hospitals and also has a direct-to-consumer business.
"Our growth was driven by our strategic priorities and strong demand. We executed well across all regions - with notably strong performance in Asia Pacific," said CEO Hanneke Faber.
Logitech in its shareholder letter posted on Tuesday noted a 120-basis-point drop in first-quarter non-GAAP gross margin year-over-year, attributed to tariffs imposed by the Trump administration as well as elevated promotional costs and other factors.
However, it said price hikes in North America and ongoing cost-cutting measures partially mitigated those impacts. Logitech in April said it would raise prices in the United States by around 10% to offset the tariffs.
The company has also been investing in shifting production out of China to reduce the impact of increased U.S. import duties.
Around 40% of its products that go to the United States are currently produced in China, a figure Logitech is aiming to reduce to 10% by the end of the 2025 calendar year.
That will involve switching production lines to Vietnam, Taiwan, Thailand, Malaysia and Mexico, where Logitech has arrangements with contract manufacturers.
Logitech said it expects its sales to grow by 3% to 7% in its second quarter to between $1.15 billion and $1.19 billion. It expects non-GAAP operating income in the range of $180 million to $200 million.
The company in April withdrew its guidance for its 2026 financial year, which runs to the end of March, citing uncertainty caused by the global trade war.
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