Logitech International CFO Sees Premium Peripheral Strength, China Gaming Boom, Eyes Price Hikes
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Logitech’s CFO said demand is strongest for premium peripherals (MX/Ergo) with double‑digit growth and enterprise video‑collaboration sales up about 8% YoY, with premiumization and higher installed‑base attach rates helping insulate the business from PC shipment cycles.
There is a geographic split: China gaming is booming (mid‑teens APAC growth driven by local product/marketing and iCafe trends), while North American gaming demand is softer amid consumer caution and fewer AAA releases.
Logitech has largely secured memory supply into H1 fiscal 2027 but is prepared to take pricing actions if costs persist, expects gross margin around 43.5%, and reaffirmed capital‑allocation priorities: reinvestment, dividend increases, selective M&A and a $2B share‑repurchase plan.
Logitech International (NASDAQ:LOGI) Chief Financial Officer Matteo Anversa discussed demand trends, supply chain issues, pricing, and capital allocation during a conversation hosted by Goldman Sachs’ European hardware research head Alexander Duval. Anversa pointed to continued strength in premium consumer peripherals, improving enterprise momentum in video collaboration, and a supportive gaming backdrop in China, while describing a more uneven picture for gaming demand in North America.
Anversa said it was “a little early” to comment in detail on fiscal 2027, which begins in April, but he described recent dynamics across Logitech’s segments. On the consumer side, he characterized demand as “resilient but choiceful,” particularly in the U.S., with shoppers seeking quality at the right price, especially in the medium-to-low end of the portfolio.
He contrasted that with continued strength in premium products. Logitech’s Pro lineup—including MX and Ergo—saw “very, very strong demand,” with double-digit growth, according to Anversa. He also said simulation products were up in the high single digits, and that “hardcore gamers” and customers focused on ergonomics and productivity have continued to spend at levels consistent with recent quarters.
On the enterprise side, Anversa said Logitech had a “great” quarter, citing video conferencing (VC) sales up about 8% year-over-year in constant currency. He added that business-to-business demand has a clearer line of sight than consumer demand because deal timing is more visible, and said the company felt “pretty bullish” about the trend.
Asked about memory shortages, Anversa said most of Logitech’s products do not rely on the type of memory currently in short supply, with only a portion of its video conferencing products affected. He said Logitech secured supply “a few quarters ago” and is “pretty much protected through the end of the first half” of fiscal 2027, while continuing to work with suppliers to improve availability.
Anversa acknowledged memory cost increases and said Logitech expects to mitigate the impact through ongoing product cost-reduction work. If those efforts are insufficient, he said the company is prepared to take pricing actions, noting it has seen some competitors begin to do so. He also referenced “pretty limited elasticity” in video conferencing products based on prior pricing actions in North America tied to tariffs, suggesting Logitech believes it has room to adjust pricing if costs remain elevated.
Duval asked how Logitech should be viewed relative to PC unit forecasts for calendar 2026, including concerns that peripheral sales might mechanically track declines in PC shipments. Anversa argued Logitech is “kind of insulated” from new PC unit trends because the attach rate on a new PC sale is about 10%–11%.
He emphasized the company’s longer-term focus on the installed base of notebooks, noting that less than half of notebooks have a separate mouse and less than a third have a separate keyboard. He described that gap as a significant opportunity and said Logitech’s historical outperformance versus PC sales has come from multiple levers:
Raising installed-base attach: Anversa said attach to the installed base has improved over time as users recognize productivity and experience benefits from separate peripherals.
Share gains: He said Logitech has steadily gained share in mice and keyboards, with mice share rising from the mid-40% range to above 50% over the last decade.
Premiumization: Anversa said average net selling prices increased materially over the last decade—mice up more than 20% and keyboards up more than 50%—supporting growth independent of PC shipment cycles.
He also cautioned that the commonly cited 300–500 basis-point outperformance is an average with meaningful year-to-year variability, and reiterated that peripherals are “not really correlated” to new PC sales, whether PC shipments are rising or falling.
Anversa described a geographic bifurcation in results. In fiscal third quarter, Asia-Pacific grew in the mid-teens, which he said is largely driven by China. After a recent trip to China, he said he saw “terrific” momentum, especially in gaming, and stated he did not see signs of a near-term slowdown. He cited trends such as the growth of “iCafes,” where groups book rooms to game together, and said the pace of new game launches in China has been faster than in the Western world.
He also credited Logitech’s “China for China” strategy—developing products in China for local preferences at “China speed”—for boosting both gaming and personal workspace share, alongside a marketing shift toward social media. As an example of cross-regional product transfer, he pointed to a mechanical keyboard launched in China that has since begun selling in the U.S. and Europe “very, very well.”
Europe, he said, has been steady with low single-digit growth, and Logitech expected similar trends in the following quarter. North America was described as the “swing factor.” Anversa said personal workspace in North America grew 7%–8% in the quarter, helped by the MX Master 4 launch, while video collaboration continued to grow. The decline was concentrated in gaming, where he said Logitech’s share was consistent and the company declined in line with the broader market.
He attributed weaker U.S. gaming demand to a mix of consumer caution among gamers aged 25–40, the absence of major new “Triple-A” titles in the Western market, and elevated console pricing. Still, he said those pressures were temporary and emphasized Logitech’s goal of building a gaming franchise and community that is less dependent on specific title releases.
On pricing and tariffs, Anversa said Logitech increased prices only in the U.S. and indicated the company expects to close the year with a gross margin rate of about 43.5%, flat year-over-year. He said pricing actions taken in April offset tariff impacts, with limited elasticity in business-to-business products and premium categories, and more elasticity in lower-end items and gaming—areas where Logitech used promotional spending during the holiday quarter.
He also said Logitech ended calendar 2025 with less than 10% of U.S.-sold products coming from China, describing the company as operating in a “China plus five” supply chain approach that provides flexibility amid a fluid tariff environment. Regarding recent tariff changes, he said there was no impact for the fourth quarter and that the impact for fiscal 2027 was “immaterial” under current exemption conditions.
Addressing capital allocation, Anversa said the company’s framework is unchanged:
Reinvest first in organic growth and new product introduction (NPI), citing return on invested capital greater than 25%.
Increase the dividend, which he said has been raised consistently in recent years.
Pursue M&A selectively, focusing on tuck-in bolt-ons rather than large transformational deals.
Return cash via share repurchases, reaffirming commitment to the $2 billion, three-year repurchase plan announced at the prior year’s Investor Day.
Logitech International SA is a Swiss-headquartered company that designs, manufactures and markets a wide range of computer peripherals and accessories for consumers, gamers and business customers. Founded in 1981, the company develops hardware and complementary software that enable people to interact with digital devices across work, home and entertainment settings. Logitech maintains corporate offices in Switzerland and significant operations in the United States and other regions worldwide.
The company’s product portfolio includes mice, keyboards, webcams, headsets, microphones, speakers, remote controls and other input/output devices, along with specialized lines for gaming, streaming and video collaboration.
