Logitech Reports Q4 Fiscal 2025 Earnings With Mixed Results
Logitech International S.A. (LOGI) announced its fourth-quarter fiscal 2025 non-GAAP earnings per share of 93 cents, surpassing the Zacks Consensus Estimate by 8.1%. Despite this positive outcome, the earnings showed a 6% decline year-over-year, mainly driven by increased promotional spending and operating expenses.
In Q4 fiscal 2025, LOGI recorded revenues of $1.01 billion, matching analyst expectations. On a reported basis, revenue growth was flat when compared to the same quarter last year, but on a constant currency basis, it increased by 2%.
Q4 Segment Performance Overview
Revenue from Keyboards & Combos increased by 2% year-over-year, reaching $220.6 million. Sales from the Pointing Devices category rose by 9% to $185.9 million, while Tablet Accessories saw a 4% increase to $58 million. Webcams also reported a modest growth of 3%, totaling $77.9 million.
In contrast, Gaming revenues dropped by 4% year-over-year to $261.8 million, and Video Collaboration sales decreased by 3% to $143.2 million. Estimates for Gaming and Video Collaboration had been projected at $270.9 million and $145.6 million, respectively.
Headset revenues fell 6% to $42.7 million, while sales in Other categories plummeted by 21% to $20.2 million. Estimated revenues for Headsets and Other categories were $46.1 million and $22.5 million, respectively.
Logitech Price, Consensus, and EPS Surprise
Logitech International S.A. price-consensus-eps-surprise-chart | Logitech International S.A. Quote
Margins and Operating Metrics
The non-GAAP gross profit for the quarter fell to $439.4 million from $441.4 million in the year-ago period. The non-GAAP gross margin decreased by 10 basis points year-over-year to 43.5%. This decline resulted from higher promotional spending and adverse foreign currency exchanges, overshadowing significant manufacturing cost reductions.
Non-GAAP operating expenses rose by 8.2% to $305.9 million, increasing as a percentage of revenues to 30.3%, up 230 basis points. Consequently, non-GAAP operating income dropped by 15.8% to $133.5 million, down from $158.6 million in the previous year. The operating margin declined by 250 basis points to 13.2%, primarily due to lower gross margins and increased operating expenses.
Liquidity and Shareholder Returns
As of March 31, 2025, Logitech reported cash and cash equivalents of $1.5 billion, consistent with the previous quarter. The company generated $129.7 million in cash from operations in Q4 and $842.6 million for the entire fiscal year.
In the fourth quarter alone, Logitech returned $125.5 million to shareholders via share repurchases and refrained from paying dividends. For fiscal 2025, total shareholder returns included $796.7 million from share buybacks and dividends, with $588.8 million spent on stock repurchase and $207.9 million in dividends.
Guidance for Q1 Fiscal 2026
Logitech has issued optimistic sales guidance for the first quarter of fiscal 2026, estimating revenues between $1.1 billion and $1.15 billion. This projection is above the Zacks Consensus Estimate of $1.07 billion and indicates expected year-over-year growth of 1%-6% on a reported basis and 0%-5% on a constant currency basis.
The company forecasts a non-GAAP operating profit between $155 million and $185 million, reflecting a potential decline of 15% to a growth of 1% compared to the previous year.
Logitech’s Zacks Rank & Considerations for Investors
Currently, Logitech holds a Zacks Rank #3 (Hold).
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