Logitech International S.A. Q2 FY2026 earnings call

New Products: Announced 16 new products including the MX Master 4 mouse with tactile haptic feedback, PRO X2 SuperStrike gaming mouse, McLaren Racing SIM racing gear, and Zone Wireless 2ES/Zone Wired 2 headsets with AI features. ### Events: Logi WORK and Logi PLAY flagship events in over 30 cities, with Logi PLAY global live stream getting over 12 million views and social media reaching ~200 million. ### B2B: Strong demand in video collaboration, personal workspace solutions, and education vertical; Logitech Spot recognized as one of Time Magazine's best inventions. ### Operational: Cost discipline and manufacturing diversification led to excellent gross margins and double-digit growth in non-GAAP operating income; on track to reduce U.S. products from China to 10% by end of calendar year.

In Q2, Logitech's net sales grew 4% year-over-year in constant currency. Personal Workspace grew with double-digit growth in Pointing Devices and Keyboards & Combos. Gaming delivered 5% year-over-year growth in constant currency, driven by double-digit growth in PC gaming. Video Collaboration grew 3% in constant currency, with EMEA showing high growth and Americas relatively flat due to pull forward of sales. Region-wise, Asia Pacific grew 19% in constant currency led by China, EMEA grew 3% driven by Video Collaboration and Personal Workspace, while Americas declined 4% primarily due to the gaming market decline. B2B demand outpaced consumer in the quarter.

Q3 net sales expected to grow 1% to 4% year-over-year in constant currency. Gross margin rate between 42% and 43%. Non-GAAP operating income expected between $270 million and $290 million. Outlook considers tariff levels unchanged, with pricing actions and diversification offsetting tariff impacts.

Market uncertainty including North American consumer market softness, macros like tariffs, export restrictions, inflation; impact of pricing actions on consumer demand in certain segments.

Q: Asiya Merchant from Citi asked about U.S. consumer uncertainty in gaming and the outlook guide.

A: Johanna Faber and Matteo Anversa responded about gaming market trends, Q3 outlook, and pricing impacts.

Q: Erik Woodring from Morgan Stanley followed up on consumer response to higher prices and M&A.

A: Johanna Faber discussed consumer response and M&A priorities.

Q: Alek Valero from Loop Capital asked about gaming in Americas normalization and B2B mix.

A: Johanna Faber addressed gaming normalization and B2B mix details.

Q: Samik Chatterjee from JPMorgan inquired about distribution partner promotional activity and OpEx efficiencies.

A: Johanna Faber and Matteo Anversa responded on promotional activity and OpEx discipline.

Q: Didier Scemama from Bank of America asked about marketing spend in holiday season and China for China strategy.

A: Johanna Faber and Matteo Anversa discussed marketing spend and China strategy.

Q: Michael Foeth from Vontobel asked about channel inventories and gaming subsegments.

A: Johanna Faber and Matteo Anversa addressed inventory and gaming subsegments.

Q: Martin Jungfleisch from BMP asked about PWS growth drivers and tariff headwind.

A: Johanna Faber and Matteo Anversa responded on PWS drivers and tariff impact.