Logitech posts $231 million in operating income in second quarter
Key Facts
Logitech reported non-GAAP operating income of $231 million in the second quarter of its 2027 fiscal year, exceeding analyst expectations and its previous company range in a result that showed strong profitability despite continued supply pressures. The company said sales rose to $1.22 billion, up 3% in U.S. dollars and 2% in constant currency year over year. Sales were in line with analyst expectations and near the top end of the company’s previous range. Non-GAAP earnings per share were $1.51, up 4% year over year, while GAAP earnings per share were $1.25, up 9%. The difference between the two earnings measures provides accounting context for the per-share figures in the results.
Non-GAAP operating income of $231 million beat Visible Alpha’s estimate of $204 million and exceeded Logitech’s previous range of $185 million to $210 million. Sales, by contrast, did not exceed analyst expectations: they came in at $1.22 billion, the top end of the company’s previous range of $1.19 billion to $1.22 billion. Non-GAAP gross margin was about 45.2%, up 140 basis points from the year-earlier period. The company said the stronger margin helped drive operating income to a level well above its forecast. The quarter’s outperformance was therefore concentrated in operating profitability, while sales were in line with estimates.
On the demand side, Reuters linked the sales increase to higher demand for gaming devices and video conferencing, while Logitech cited growth in its Video Collaboration and Gaming businesses among the sales drivers. Chief Executive Hanneke Faber said pointing devices and keyboards posted mid-single-digit growth, despite global PC shipments falling 20% during the quarter. These figures reflect mixed performance across product categories in a period when PC shipments declined. In the first quarter of fiscal 2027, the company reported revenue of $1.23 billion and actual earnings per share of $1.85. In the second quarter, sales were below first-quarter revenue, alongside a decline in earnings per share on a direct quarter-on-quarter comparison.
Logitech returned $406 million to shareholders during the quarter through its annual dividend and share buybacks. But disruption at a semiconductor supplier’s facility threatens sales in the next quarter, with the company expecting a negative impact of about $70 million to $80 million on third-quarter fiscal 2027 sales. The company said the facility reopened in September and began increasing production, and that the incident’s impact is expected to largely fade by the fourth quarter. It expects the facility to return to full capacity before the end of calendar 2026. Supply concerns were reflected in the stock’s trading after the results announcement: Logitech shares fell 5.7% in after-hours trading on Oct. 27, 2026, as investors focused on supply-chain disruption and the third-quarter outlook.
For the third quarter, Logitech set a sales range of $1.36 billion to $1.43 billion and a non-GAAP operating income range of $220 million to $255 million. The sales range includes the supplier disruption’s impact, which the company estimates at $70 million to $80 million, and it expects that impact to have largely faded by the fourth quarter. The company had previously announced that it would release its second-quarter fiscal 2027 results on Oct. 27, 2026, and scheduled a conference to discuss them on the same day. The forward guidance puts both demand for the company’s products and supply developments at the center of monitoring operating performance. The expected sales and operating income figures also provide a framework for assessing the third quarter after the second-quarter result.