Logitech Reports Highest Quarterly Profit Since Pandemic

• Adjusted operating income of $312 million exceeded consensus estimates of $287 million and represents Logitech's best quarterly performance outside of pandemic peak years (2021-2022)
• The company completed its strategic shift away from China manufacturing, reducing U.S.-bound production in China from 40% to less than 10% to mitigate tariff impacts, while implementing 10% price increases in the U.S.
• Logitech forecasts Q4 sales growth of 6%-8% to $1.07-$1.09 billion with operating income of $155-$165 million, signaling continued momentum across consumer and business channels

Logitech Reports Strongest Quarterly Profit Since Pandemic

Key Financial Results:

Logitech International reported its best quarterly earnings since the pandemic for Q3 (ended December 31), with sales rising 6% year-over-year to $1.42 billion, slightly exceeding analyst estimates of $1.41 billion. Adjusted operating income jumped 17% to $312 million, beating consensus expectations of $287 million. This marks the company's strongest quarterly performance excluding its 2021-2022 pandemic-peak years.

Growth Drivers:

The U.S.-Swiss computer peripherals maker saw broad-based growth across multiple segments:

• Strong demand for video conferencing equipment (webcams, speakers, microphones)
• Significant increase in tablet keyboard and cover sales to educational institutions
• Solid performance in traditional computer mice and keyboards

Strategic Initiatives:

Logitech implemented approximately 10% price increases in the U.S. last year to offset tariff impacts while reducing operational costs. The company successfully completed its supply chain restructuring, reducing U.S.-bound production in China from 40% to under 10%, shifting manufacturing to mitigate tariff exposure. The Suzhou, China facility will continue serving China and other global markets.

Outlook:

For Q4 (ending March), Logitech projects 6%-8% sales growth to $1.07-$1.09 billion, with adjusted operating income expected between $155-$165 million.

Market Implications:

CEO Hanneke Faber noted growth was "broad-based across categories, regions and both consumer and business channels," demonstrating the company's successful navigation of tariff headwinds and diversification beyond pandemic-driven demand. The results suggest sustained demand for hybrid work solutions and educational technology.