Logitech stock faces supplier shock after a strong fiscal Q2

Logitech delivered another quarter of growth, but a semiconductor supplier incident is set to weigh on the company’s fiscal third-quarter sales. The update was published after the company reported its fiscal second-quarter results on October 27, with the figures and outlook covered by Investing.com.

Adjusted earnings per share reached 1.51 US dollars, beating the 1.30 US dollar analyst consensus cited in the report. Revenue rose 3 percent year over year to 1.22 billion US dollars, slightly above the 1.21 billion US dollar estimate. Logitech said the quarter marked its eleventh consecutive period of growth.

Strong Demand, Uneven Supply

Gaming and video collaboration were among the areas supporting the quarter. The company also launched 19 products for the holiday period, giving it a broader product lineup as demand for peripherals remains resilient in key markets.

Profitability was another positive. Adjusted gross margin expanded 140 basis points to 45.2 percent, while adjusted operating income increased 0.4 percent to 231 million US dollars. Logitech also returned 406 million US dollars to shareholders through its annual dividend and share repurchases during the quarter.

The main investor concern is the next quarter. Logitech expects fiscal Q3 revenue of 1.36 billion to 1.43 billion US dollars and adjusted operating income of 220 million to 255 million US dollars. In constant currency, the sales outlook ranges from a 5 percent decline to flat year over year.

The forecast includes an estimated 70 million to 80 million US dollar sales impact from a semiconductor supplier incident. The affected facility closed at the end of June, reopened in September and is still ramping production. Logitech expects full production by the end of the calendar year and said the disruption should be largely resolved by fiscal Q4.

Margin Pressure Remains

The outlook shifts the focus from demand to execution. Logitech expects higher freight, logistics and component costs to pressure the fiscal third quarter, while promotions could also weigh on gross margin. At the same time, management expects fiscal 2027 adjusted operating margin to remain at the high end of its long-term 15 percent to 18 percent range, excluding a 61 million US dollar tariff refund received in the prior quarter.

The real-time quote of Logitech stock was 86.42 euros on Lang & Schwarz at 9:36 a.m. CET on Monday, November 2, 2026.

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More news and analyses on Logitech stock cover the company’s earnings, supply situation and outlook.