Logitech International (NASDAQ:LOGI) executives highlighted “very strong” third-quarter fiscal 2026 performance, pointing to record non-GAAP operating income and earnings per share outside of pandemic peak periods, alongside continued margin strength and cash generation. CEO Hanneke Faber and CFO Matteo Anversa said results were broad-based across regions and product categories, and emphasized product innovation, accelerating B2B demand, and operational discipline as key drivers.
Quarter performance: record profitability and strong cash flow
Management said third-quarter net sales were $1.4 billion, up 6% in U.S. dollars and up 4% in constant currency year over year. Faber described growth as “broad-based across regions, channels, and categories,” while Anversa noted it was Logitech’s eighth consecutive quarter of top-line growth.
Cash flow was a major focus. Anversa said operating cash flow was approximately $500 million, up 30% year over year, driven by profitable growth and working capital discipline. He added that the cash conversion cycle improved 18% to 27 days, and Logitech ended the quarter with $1.8 billion in cash.
Category trends: personal workspace, video collaboration, and gaming
Logitech posted growth across its major product groups, with differing regional dynamics:
- Personal Workspace: Net sales increased 7%. Anversa said pointing devices grew 9% fueled by the MX Master 4 launch, and tablet accessories delivered double-digit growth.
- Video Collaboration: Net sales grew 8%, with double-digit growth in EMEA and Asia-Pacific. Management pointed to continued strength for the AI-enabled RallyBoard 65 and reiterated that the B2B nature of the business can be “lumpy” quarter to quarter despite what Anversa called strong long-term momentum.
- Gaming: Net sales rose 2%. Asia-Pacific posted double-digit growth, while Americas and EMEA declined single digits, which Anversa attributed to market contraction.
Faber emphasized that in gaming, Logitech gained share in China across gaming mice and keyboards over the past three months, calling it the first time she could remember that happening during her tenure. She said the company is “winning at the top end with Pro” and at entry-level with China-focused products, citing the new G316 mechanical gaming keyboard as performing well.
In the U.S. and Europe, Faber said Logitech held share in a declining market, and noted U.S. share stabilized after a period of softness tied to pricing changes. She also said the company saw “great growth on the top end” in those regions, with both Pro and SIM products growing double digits.
Product launches and AI initiatives
Faber pointed to product innovation as a central driver of results. She said the MX Master 4 mouse, launched at the end of September, was selling at “record levels” and posted the most first-month unit sales of any personal workspace mouse in Logitech’s history. She framed it as an example of how premium products can drive upgrades and new users, citing features such as haptic feedback, new software, and design improvements, along with productivity benefits.
Faber also described AI as moving beyond experimentation, saying Logitech is “shipping AI products globally at scale.” She cited AI-powered devices shipped in the quarter including the RallyBoard 65, the Sight video conferencing camera, and Zone Wireless 2 headsets, as well as AI-enabling devices such as the Spot sensor. She added Logitech recently announced the Rally AI Camera and Rally AI Pro aimed at large rooms such as boardrooms, auditoriums, and classrooms.
B2B momentum, education strength, and channel health
Management said B2B demand significantly outpaced B2C demand in the quarter, driven by video collaboration and strength in the education vertical. In Q&A, executives also addressed concerns about demand “pull-forward” tied to memory component availability and PC supply dynamics, stating they did not see pull-forward behavior in the business. Faber noted that with roughly 60% of Logitech’s business in B2C, consumers are “definitely not pulling things forward,” and said she had not seen evidence of pull-forward in B2B either.
On channel dynamics, Anversa said sell-through rose 10% year over year in the third quarter, and walked through factors including foreign exchange, slightly higher promotional spending heading into the holiday season, and a slightly negative mix tied to higher tablet accessory sales connected to education demand. He added there was no major inventory restocking, and management said channel inventory levels were healthy exiting the holiday season, with “excellent” internal inventory turns.
Tariffs, manufacturing diversification, and outlook
Tariffs and manufacturing strategy were recurring themes. Faber said product cost reductions, targeted pricing actions, and foreign exchange helped offset tariff headwinds. She also said Logitech reduced the percentage of U.S. products manufactured in China from 40% in April to less than 10% by the end of December 2025. Anversa said the company is “happy where we are” on that metric while maintaining flexibility given a fluid tariff environment, referencing the company’s “China Plus 5” diversification strategy.
Looking ahead, Anversa said Logitech is monitoring geopolitics, tariffs, and consumer confidence. For the fourth quarter, management guided to:
- Net sales growth: 3% to 5% year over year in constant currency
- Gross margin rate: approximately 43% to 44%
- Non-GAAP operating income: $155 million to $165 million (up 20% year over year at the midpoint)
Anversa added that the company expects to close fiscal 2026 above the long-term model targets for non-GAAP gross margin and non-GAAP operating margin shared at its Analyst and Investor Day the prior year.
In Q&A, Faber said it was “too early” to discuss fiscal 2027 guidance, but expressed confidence in continued execution. She also addressed questions about memory availability, stating most of Logitech’s portfolio does not use the constrained chips and that only a portion of video conferencing products are affected. She said the company had taken proactive steps to ensure supply and did not foresee a supply impact in the fourth quarter or the first half of the next fiscal year, though she noted there could be a modest cost impact that Logitech would aim to mitigate through cost reductions and targeted pricing if needed.
Faber reiterated her view of long-term growth opportunity in peripherals driven by the installed base of PCs. She said that of more than 1.5 billion PCs in use globally, less than half have a mouse attached and less than 30% have an external keyboard, which she characterized as a large opportunity for upgrades and adoption beyond new PC sales.
About Logitech International (NASDAQ:LOGI)
Logitech International SA is a Swiss-headquartered company that designs, manufactures and markets a wide range of computer peripherals and accessories for consumers, gamers and business customers. Founded in 1981, the company develops hardware and complementary software that enable people to interact with digital devices across work, home and entertainment settings. Logitech maintains corporate offices in Switzerland and significant operations in the United States and other regions worldwide.
The company’s product portfolio includes mice, keyboards, webcams, headsets, microphones, speakers, remote controls and other input/output devices, along with specialized lines for gaming, streaming and video collaboration.
See Also
- Five stocks we like better than Logitech International
- How a Family Trust May Be Able To Help Preserve Your Wealth
- Do not delete, read immediately
- NEW LAW: Congress Approves Setup For Digital Dollar?
- “Fed Proof” Your Bank Account with THESE 4 Simple Steps
- A U.S. “birthright” claim worth trillions – activated quietly
