On March 5, Logitech International (LOGN.S) revealed plans to buy back $2 billion worth of shares over the next three years, while also increasing its current buyback program by an additional $600 million. The announcement was made as the company confirmed its sales outlook for fiscal year 2025.
Logitech has forecasted that its fiscal year 2026 sales will range between $4.53 billion and $4.71 billion, signaling potential growth of 1% to 3% in U.S. dollars. The Swiss-American company, which experienced a significant sales boom during the pandemic, had previously projected a 5.4% to 6.4% increase in 2025 sales, aiming to reach $4.54 to $4.57 billion.
In late January, Logitech raised its full-year forecast, bolstered by stronger sales and profits from its crucial pre-holiday quarter. The company presented these figures during its investor day event in San Jose, California. Logitech also set long-term targets of 7% to 10% annual sales growth, with a non-GAAP gross margin exceeding 40%, and an operating margin of 15% to 18%.
“We are market leaders in our core categories with a clear strategy to extend that leadership,” said CEO Hanneke Faber. “Our plan includes entering new verticals, leveraging AI as a growth driver, and expanding into adjacencies.”
After the pandemic-driven surge in sales, which was followed by a downturn, Logitech is now focusing on expanding its market reach. The company plans to target new sectors like education and healthcare, aiming to broaden its consumer base, which traditionally includes home computer users, gamers, and businesses.
Logitech is pushing to increase its sales to businesses directly. One of its recent innovations includes a computer mouse equipped with a button that connects users to AI platforms like ChatGPT, showcasing its focus on integrating artificial intelligence into its products.
