Swiss earnings calls, October 2026: Logitech lowers expected supplier-incident sales hit

Logitech expects a smaller sales impact from a supplier incident than it stated in July

The chief executive said Logitech reduced the expected net-sales impact of a supplier incident in the third quarter of fiscal year 2027 to $70 million-$80 million. In July, the company had stated an impact of up to $200 million. The chief financial officer said Logitech expects the supplier incident to be largely resolved by the fourth quarter of fiscal year 2027.

Logitech expects third-quarter sales between down 5% and flat

• The chief financial officer said Logitech expects net sales in the third quarter of fiscal year 2027 to be down 5% to flat year-over-year in constant currency, which means excluding the effect of exchange-rate changes.
• The chief financial officer said Logitech expects non-GAAP operating income, a measure outside generally accepted accounting principles, of $220 million to $255 million in that quarter, with gross margin of 41% to 42% of net sales.
• The chief executive said Logitech expects gaming activity in that quarter to be exciting around the launch of GTA 6 (Grand Theft Auto 6), scheduled for November 19. The chief executive said the game is launching on console first, with its PC launch expected much later, into the next calendar year.
• The chief executive said the comparison against a large Japan education deal is expected to go away after the third quarter of fiscal year 2027.

Logitech expects its full-year margin at the high end of its long-term range

The chief financial officer said Logitech expects its non-GAAP operating income margin for fiscal year 2027 to be at the high end of its long-term 15%–18% range. This excludes $61 million of tariff refunds received in the prior quarter. The chief executive said returns from research and development (R&D) and sales-and-marketing investments are expected to begin materializing sooner rather than later, but gave no date.

Analysts asked about Europe, Japan and freight costs, and management answered only in part

Analysts asked how long Europe may remain negative and how Logitech plans to turn it around. They also asked which quarters the Japanese education deal affects and which regions could drive further growth. Management gave partial answers to both. Management declined to explain whether freight-contract expirations will cause a lagging or accelerated input-cost impact next year.