Logitech Q2 FY27: Sales Up 3% to $1.22B, EPS $1.25; Q3 Guided Down 5% to Flat on Supplier Hit

summarizeSummary

Logitech beat on Q2 margins and EPS but guided Q3 sales down 5% to flat, with $70-80M of the hit tied to the supplier fire; management expects the issue largely resolved by Q4.

check_boxKey Events · Earnings and Guidance · LOGI

• Q2 FY27 Sales Up 3% to $1.22B

  Net sales were $1,218.8M versus $1,186.1M a year ago, up 3% in US dollars and 2% in constant currency, the eleventh consecutive quarter of growth.

• Margins and EPS Beat

  GAAP gross margin rose 150 bps to 44.9% and non-GAAP operating income was $230.9M, up 0.4%; GAAP diluted EPS was $1.25, up 9%, and non-GAAP diluted EPS was $1.51, up 4%.

• Q3 Guided Down 5% to Flat

  Q3 FY27 sales outlook is $1,360-1,430M, down 5% to 0% in constant currency, with non-GAAP operating income of $220-255M; $70-80M of the sales hit comes from the supplier incident.

• Supplier Ramp Is the Swing Factor

  The semiconductor supplier's facility reopened in September and is ramping, but capacity is below required levels; management expects full production by the end of the calendar year and the impact largely resolved by Q4.

auto_awesomeAnalysis · LOGI · Technology

Logitech posted its eleventh straight growth quarter, with gross margin up 150 basis points to 44.9% and non-GAAP operating income of $231M ahead of its own outlook. The concern is forward-looking: Q3 sales are guided to $1.36-1.43B, down 5% to flat in constant currency, and $70-80M of that shortfall stems from the semiconductor supplier fire first flagged in the July 10-Q. Although the facility reopened in September, it is still below required capacity, so the key question is whether full production really returns by calendar year-end as management expects. Cash generation remains solid ($164M from operations, $1.51B cash), and the company returned $406M to shareholders, which cushions the near-term hit but does not offset a sales decline in the holiday quarter.