Logitech rises as Q2 financial results demonstrate improving gross margins

Logitech (NASDAQ:LOGI) shares increased nearly 4% during after-hours trading after reporting its second quarter fiscal 2026 financial results on Tuesday.

For the quarter ended September 30, Logitech reported adjusted earnings per share of $1.45, which was much more than the consensus estimate of $1.24. GAAP EPS came in at $1.15, which also surpassed the consensus of $1.05.

Revenue for the quarter totaled $1.19B, which matched the estimate of $1.19B. On a segment basis, Keyboard and Combos sales and Pointing Devices sales both easily beat the consensus estimates. Gaming, which comprised the most at $323.3M, was just below the estimate of $324.4M. Video Collaboration, Webcam, Tablet Accessories, and Headset sales also came in just below the market's expectations.

The Swiss-based company reported an adjusted gross margin of 43.8%, which was more than the 41.7% estimate.

Looking ahead, Logitech projects third-quarter sales ranging from $1.38B to $1.42B, with the $1.4B midpoint above the $1.38B estimate.

"We continue to demonstrate resilience in a challenging environment," said Logitech CEO Hanneke Faber. "In the quarter, we announced 16 new products, including the much-anticipated MX Master 4 mouse and a wide array of new Gaming products. We executed well across all regions, and saw strong demand growth across both B2B and consumer channels."

"This quarter, our teams delivered outstanding operating income growth and continued to drive robust gross margins, thanks to disciplined operational execution and cost controls," added Matteo Anversa, Logitech's chief financial officer.