Hanneke Faber

Logitech delivered its tenth consecutive quarter of growth with 44% operating income growth and 270bps gross margin expansion (ex-tariff), driven by strong demand across mice, gaming, and video conferencing. The company has a strong balance sheet ($1.5B cash, no debt) and is offsetting unprecedented component cost increases through cost reductions and premiumization. The temporary semiconductor supplier disruption is ring-fenced to Q2-Q3 with mitigation plans and healthy inventory providing a buffer. The CEO is optimistic on gaming demand heading into the holiday season with new product launches and the upcoming GTA VI release.