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Logitech Announces $2 Billion Share Buyback and Confirms 2025 Outlook

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Logitech International has revealed plans to repurchase $2 billion worth of shares over the next three years, including an additional $600 million to boost its existing buyback program. The company also confirmed its outlook for fiscal year 2025, forecasting sales growth of 5.4% to 6.4%, reaching $4.54 to $4.57 billion.

Logitech also projects fiscal year 2026 sales will range from $4.53 billion to $4.71 billion, marking potential growth of 1% to 3% in U.S. dollars. This follows a positive performance in the pre-holiday quarter, with the company raising its full-year forecast in January due to increased sales and profit.

During its investor day in San Jose, California, Logitech emphasized its goal of achieving long-term annual sales growth of 7% to 10%, with a non-GAAP gross margin above 40% and an operating margin between 15% and 18%. CEO Hanneke Faber highlighted the company’s market leadership in key categories and its plans to expand into new verticals, with AI playing a pivotal role in its strategy.

Following a pandemic-driven sales surge and subsequent slowdown, Logitech now aims to target new markets, such as education and healthcare, while continuing to serve its traditional base of consumers, gamers, and businesses. The company is also focusing on selling products directly to businesses, including items like a computer mouse with a button that connects users to AI platforms like ChatGPT.

Apple Partners with Alibaba to Introduce AI Features for iPhones in China

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Apple has partnered with Alibaba to launch artificial intelligence features for iPhone users in China, a move aimed at addressing months of uncertainty over Apple’s AI strategy in the region, according to The Information. The collaboration could help Apple regain its competitive edge in the Chinese market, where it has been losing ground to local rivals such as Huawei, which has already incorporated AI tools into its smartphones since last year.

Apple’s stock rose by 1.5% following the news, while Alibaba’s U.S.-listed shares saw a 2.6% gain. Apple had initially chosen Baidu as its AI partner, but the Chinese company’s progress in developing models for Apple Intelligence did not meet Apple’s standards. As a result, Apple considered various other AI models from Tencent, ByteDance, Alibaba, and Deepseek but ultimately chose Alibaba for its ability to leverage vast amounts of user data related to shopping and payment habits, which could enhance model training and enable more personalized services.

The Chinese AI features co-developed by Apple and Alibaba are now under review by China’s cyberspace regulator for approval. This development is crucial as Apple’s iPhone sales declined during the holiday quarter, typically its best-performing period, largely due to the absence of AI features in its latest devices. Apple remains optimistic, forecasting strong sales growth for the current quarter.

Emerson Reports Strong First-Quarter Profit Amid Increased Demand for Industrial Components

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Emerson (EMR.N), an engineering solutions provider, reported better-than-expected first-quarter profits on Wednesday, driven by robust demand for its valves and regulators in the industrial components sector. This surge in demand is attributed to increased energy and power investments by businesses.

Sales in Emerson’s final control unit, which manufactures valves, regulators, and actuators, saw a 4% rise, reaching $976 million in the reported quarter. On an adjusted basis, Emerson earned $1.38 per share for the quarter ending December 31, surpassing analysts’ estimates of $1.28 per share, according to data from LSEG.

CEO Lal Karsanbhai expressed confidence in the company’s future, noting that the resilient demand in process and hybrid markets, along with a projected recovery in the second half of the year, will continue to drive sales and earnings. Emerson reaffirmed its forecast for 2025 per-share adjusted profit to be in the range of $5.85 to $6.05.

However, the company’s total quarterly revenue rose just 1% to $4.18 billion, slightly missing analysts’ average estimate of $4.23 billion, due to a slowdown in demand for its automation technology.