Logitech Reaffirms FY 2025 Financial Outlook; Withdraws FY 2026 Financial Outlook Due to Tariff Environment

Rhea-AI Summary

Logitech (NASDAQ: LOGI) has reaffirmed its financial outlook for fiscal year 2025 while withdrawing its FY 2026 guidance due to tariff uncertainty. The company expects:

• FY 2025 net sales between $4.54 billion and $4.57 billion
• Year-over-year sales growth of 5.4% to 6.4% in US dollars
• Growth of 6.2% to 7.1% in constant currency
• Non-GAAP operating income between $755 million and $770 million

The company has withdrawn its fiscal year 2026 outlook citing ongoing uncertainty in the tariff environment. Logitech uses non-GAAP measures and constant currency calculations to provide clearer comparisons of its performance across periods.

Positive

• Projected sales growth of 5.4-6.4% for FY2025
• Strong operating income guidance of $755-770 million
• Healthy constant currency growth projection of 6.2-7.1%

Negative

• Withdrawal of FY2026 guidance due to tariff uncertainty
• Potential impact of unfavorable tariff environment on future performance

Insights

Financial Analyst

Logitech's announcement presents a mixed financial picture with significant implications for investors. While the company reaffirmed its FY 2025 guidance with projected sales of $4.54-4.57 billion (representing 5.4-6.4% year-over-year growth) and non-GAAP operating income of $755-770 million, the withdrawal of FY 2026 outlook is concerning.

The decision to withdraw future guidance specifically due to tariff uncertainties signals potential margin pressure ahead. With Logitech's global manufacturing footprint and cross-border supply chains, changing tariff structures could significantly impact cost structures, potentially forcing difficult decisions between absorbing costs or raising prices in competitive markets.

The current fiscal year projection showing 6.2-7.1% growth in constant currency terms suggests underlying business momentum remains solid despite these headwinds. However, the lack of forward visibility beyond the current fiscal year creates planning challenges for the company and valuation uncertainty for investors.

This development isn't entirely surprising given escalating global trade tensions, but it does highlight Logitech's vulnerability to trade policy shifts as a hardware manufacturer with global operations. Maintaining current year targets while withdrawing longer-term guidance suggests management has confidence in near-term execution but visibility into the evolving tariff landscape.

Supply Chain Expert

Logitech's withdrawal of FY 2026 guidance specifically citing tariff uncertainty reveals significant supply chain vulnerabilities. As a global hardware manufacturer, Logitech operates a complex manufacturing network with considerable exposure to potential tariff escalations between major trading partners.

The timing is particularly notable as it suggests management anticipates potential new or expanded tariffs that could materially impact their cost structure. While Logitech has manufacturing diversification with facilities across Asia, including Thailand and China, completely reorganizing supply chains to avoid tariff impacts would require substantial lead time and investment.

The company faces three challenging options: absorb higher costs and accept margin compression, pass costs to consumers risking market share loss, or accelerate supply chain reconfiguration at significant expense. Each pathway presents material business challenges, explaining management's reluctance to provide longer-term guidance.

While competitors face similar challenges, companies with more regionalized manufacturing or higher-margin product portfolios may have greater flexibility to navigate these headwinds. Logitech's decision to maintain current year guidance while withdrawing future projections suggests they have near-term mitigation strategies in place but recognize the structural challenges posed by prolonged trade tensions.

LAUSANNE, Switzerland & SAN JOSE, Calif.--(BUSINESS WIRE)-- SIX SWISS Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI), reaffirmed its financial outlook for its fiscal year ended March 31, 2025. Given the continuing uncertainty of the tariff environment, the Company withdrew its outlook for Fiscal Year 2026.

• Current Fiscal Year 2025 outlook: Logitech confirmed its current Fiscal Year 2025 outlook of between $4.54 billion and $4.57 billion in net sales, representing year-over-year sales growth of 5.4% and 6.4% in US dollars, and 6.2% to 7.1% in constant currency, and non-GAAP operating income between $755 million and $770 million.
• Withdrawal of Fiscal Year 2026 outlook: Logitech withdrew its outlook for Fiscal Year 2026 given the continuing uncertainty of the tariff environment.

Use of Non-GAAP Financial Information and Constant Currency

To facilitate comparisons to Logitech’s historical results, Logitech has included certain non-GAAP adjusted measures, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, restructuring charges (credits), net, loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed in our “GAAP to Non-GAAP Reconciliation” under “Supplemental Financial Information” in our earnings press release for the quarter ended December 31, 2024 and posted to our website at http://ir.logitech.com. Logitech also presents percentage sales growth (decline) in constant currency (“cc”), a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales. Logitech believes this information, used together with the GAAP financial information, will help investors to evaluate its current period performance, outlook, and trends in its business. With respect to the Company’s outlook for non-GAAP operating income, most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to the GAAP amounts has been provided for non-GAAP financial outlook for fiscal year 2025.

About Logitech

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, gaming and streaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech and its other brands, including Logitech G, at www.logitech.com or company blog.

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including, without limitation, statements regarding our Fiscal Year 2025 outlook for sales and non-GAAP operating income. The forward-looking statements in this press release are subject to risks and uncertainties that could cause Logitech’s actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: final closing of the accounting books and records and quarterly and fiscal year end accounting adjustments. A detailed discussion of other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech’s periodic filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, our Quarterly Report on Form 10-Q for the quarter ended December 31, 2024, and other reports filed with the SEC, available at www.sec.gov, under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forward-looking statements to reflect new information or events or circumstances occurring after the date of this press release, except as required by law.

Logitech and other Logitech marks are trademarks or registered trademarks of Logitech Europe S.A. and/or its affiliates in the U.S. and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s website at www.logitech.com

(LOGIIR)

View source version on businesswire.com: https://www.businesswire.com/news/home/20250410301939/en/

Editorial Contacts:

Kate Beerkens, Director of Investor Relations - ir@logitech.com

Nicole Kenyon, Head of Global Communications - nkenyon@logitech.com (USA)

Ben Starkie, Corporate Communications - +41 (0) 79-292-3499, bstarkie1@logitech.com (Europe/Asia)

Source: Logitech International

FAQ

What are Logitech's (LOGI) sales projections for fiscal year 2025?

Logitech projects FY2025 net sales between $4.54-$4.57 billion, representing 5.4-6.4% growth in USD and 6.2-7.1% in constant currency.

Why did Logitech (LOGI) withdraw its FY 2026 financial outlook?

Logitech withdrew its FY2026 outlook due to continuing uncertainty in the tariff environment.

What is Logitech's (LOGI) expected operating income for FY 2025?

Logitech expects non-GAAP operating income between $755 million and $770 million for FY2025.

How does Logitech (LOGI) calculate its constant currency growth?

Logitech calculates constant currency growth by translating prior period sales in local currencies at current period's average exchange rates.