Logitech targets US$2 billion share buyback, confirms 2025 outlook

LOGITECH International will buy back US$2 billion worth of shares over the next three years, and will increase its current buyback programme by US$600 million, the computer parts maker said on Wednesday (Mar 5) as it confirmed its 2025 outlook.

The company also forecast fiscal year 2026 sales to range from US$4.53 billion to US$4.71 billion, indicating potential growth in the range of 1 to 3 per cent in US dollars.

The Swiss-American company, which enjoyed a sales surge during the pandemic lockdown, previously said it expected its 2025 sales to grow by 5.4 to 6.4 per cent to reach US$4.54 to US$4.57 billion.

Logitech raised its full-year forecast in late January, boosted by higher sales and profit for its important pre-holiday quarter.

Logitech announced the figures at its investor day in San Jose, California, where it said that it aims for long-term annual sales growth of 7 to 10 per cent, with a non-GAAP gross margin above 40 per cent and operating margin of 15 to 18 per cent.

“We are market leaders in our core categories with a clear strategy to extend that leadership, a credible plan to enter new verticals and adjacencies, and AI (artificial intelligence) as a force multiplier,” said CEO Hanneke Faber.

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The company has returned to sales growth after a pandemic-driven boom was followed by a downturn. Logitech now aims to sell its products in areas such as education and healthcare to expand its traditional consumer base among home computer users, gamers and businesses.

Logitech wants to sell more of its products directly to businesses in future. Its recent products include a computer mouse with a prompt builder button which connects the user to AI platforms such as ChatGPT. REUTERS