Logitech (LOGIN) Q2 2027 Earnings Report

The call was broadly positive. Logitech reported its 11th consecutive quarter of growth, strong gross margins, solid operating income, market-share gains and robust demand in video collaboration, gaming, enterprise and premium products. The main challenges were the semiconductor supply incident, regional weakness in EMEA and Asia Pacific, declines in tablet accessories and webcams, and expected third-quarter margin and revenue pressure from supply constraints, inflation, logistics costs and promotions. Management nevertheless reduced the expected supplier impact, expects it to be largely resolved by the fourth quarter, and maintained a fiscal-year operating-margin outlook at the high end of its long-term range.

For the third quarter, Logitech expects constant currency net sales to be down 5% to flat year-over-year, including a negative impact from the supplier incident of between $70 million to $80 million; non-GAAP operating income is expected to be in the range of $220 million to $255 million, with a gross margin rate between 41% and 42%, approximately 200 basis points lower year-over-year, including roughly 150 basis points from freight, logistics and material costs and 50 basis points from slightly higher promotional spend. The supplier impact is expected to be largely resolved by the fourth quarter, while inflationary pressure is expected to continue throughout the remainder of fiscal year 2027. Logitech now expects fiscal year 2027 non-GAAP operating income margin to be at the high end of its long-term 15% to 18% range, even excluding the $61 million tariff refunds from last quarter; normalized third-quarter demand is about plus 4% in constant currency, and the company expects positive holiday demand overall.