Fiscal second-quarter sales rose 3% to $1.22 billion, the 11th straight quarter of growth, and adjusted earnings of $1.51 a share topped forecasts. The holiday-quarter outlook includes a hit from a semiconductor supplier incident.
Earnings | FinancialMarkets.com | October 28, 2026
Tickers: LOGI
Logitech delivered a beat for the quarter just ended and a problem for the one that matters most.
The maker of PC peripherals reported fiscal second-quarter sales of $1.22 billion, up 3% in dollars and 2% in constant currency, the 11th consecutive quarter of growth and slightly above the $1.21 billion analysts expected. Adjusted earnings were $1.51 a share, up 4% and well above the estimate of $1.34. The GAAP gross margin widened 1.5 percentage points to 44.9%. Adjusted operating income was $231 million, essentially flat.
The holiday quarter
For the December quarter, Logitech forecast sales of $1.36 billion to $1.43 billion, between a 4% decline and a 1% increase from a year earlier. That range includes an expected $70 million to $80 million hit from an incident at a semiconductor supplier, which the company said it expects to be "largely resolved by Q4." It did not name the supplier.
Adding the expected impact back gives underlying sales of roughly $1.43 billion to $1.51 billion, or growth of about 1% to 6%, by our arithmetic. So the business itself is not forecast to shrink. The problem is that the shortfall lands in the holiday quarter, Logitech's largest, and that investors cannot yet see how far the margin outlook is affected.
The reaction
Logitech closed up 1.8% at $111.82 on Tuesday before the release. It was quoted around $99 early Wednesday, about 11.3% lower, and its Swiss-listed shares were down 11.1% at 81.76 francs in early Zurich trading, which confirms the move in a deeper market.
Weighing a one-time hit
One reading is that this is a temporary supply issue in a business that keeps growing. The quarter beat, gross margin widened, underlying holiday sales are still expected to rise, and the company expects the problem to be mostly fixed by the March quarter.
The other is that the timing and the unknowns justify caution. The disruption falls on the biggest selling season, the supplier and the scope of the incident are unnamed, and operating income was flat in the quarter just reported even as earnings per share rose.
What to watch
Any detail on the supplier and the scope of the incident, Logitech's profit outlook for the December quarter, holiday demand for PCs and accessories, and whether the shortfall is recovered in the March quarter.