Logitech Reports Strong Earnings but Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Earnings Beat: Logitech reported Q3 fiscal 2026 earnings of $1.93 per share, surpassing analyst expectations of $1.81, with sales reaching $1.42 billion, reflecting a robust 6% year-over-year growth.
- Margin Improvement: The company's gross margin increased to 43.2%, up 30 basis points from last year, as Logitech effectively reduced selling, general, and administrative costs while still achieving sales growth, showcasing strong cost management.
- Positive Guidance: Logitech forecasts Q4 sales between $1.07 billion and $1.09 billion, slightly above analyst expectations of $1.08 billion, indicating confidence in future growth with full-year sales projected to exceed $4.82 billion.
- Strong Cash Flow: With trailing free cash flow of $905 million and a price-to-free cash flow ratio of 14.4, alongside a 1.7% dividend yield and a recent 28% earnings growth, Logitech's stock appears to present a solid investment opportunity.
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Analyst Views on LOGI
Wall Street analysts forecast LOGI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LOGI is 121.14 USD with a low forecast of 102.79 USD and a high forecast of 137.89 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 86.640
Low
102.79
Averages
121.14
High
137.89
Current: 86.640
Low
102.79
Averages
121.14
High
137.89
About LOGI
Logitech International S.A. is a Switzerland-based holding company. The Company’s purpose is to coordinate the activities of the various Swiss and foreign subsidiaries of the Logitech group. The Company focuses on designing and manufacturing products that enable people to connect and interact with digital content. Its portfolio includes Gaming, Keyboards & Combos, Pointing Devices, Video Collaboration, Webcams, Tablet Accessories, and Headsets. The Company sells its products to a broad range of international customers, in the Americas, Europe, the Middle East, Africa and Asia Pacific. This includes direct sales to retailers, e-tailers, businesses large and small and end consumers through our e-commerce platform, and indirect sales to end customers through distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Logitech Files Q3 FY2026 Report with SEC
- Report Filing: Logitech filed its Form 10-Q for Q3 FY2026 with the SEC on January 28, 2026, making the report accessible on both the SEC and Logitech's websites, ensuring timely financial information for investors.
- Company Background: Founded in 1981, Logitech is a public company listed on the SIX Swiss Exchange (LOGN) and Nasdaq (LOGI), focusing on designing software-enabled hardware solutions that enhance user experiences in work, creation, and gaming.
- Brand Influence: Logitech and its brands, including Logitech G, are renowned globally for connecting people to the digital world, aiming to extend human potential while adhering to sustainable practices.
- Investor Relations: Logitech's investor relations and corporate communications teams provide various contact options, ensuring that investors and media can access the latest information promptly, thereby enhancing the company's transparency and communication efficiency.
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Logitech Files Q3 FY2026 Report with SEC
- Report Filing: Logitech filed its Form 10-Q for Q3 FY2026 with the SEC on January 28, 2026, demonstrating the company's ongoing commitment to transparency and regulatory compliance.
- Information Access: The report is available on both the SEC's website and Logitech's official site, ensuring that investors and stakeholders can access timely information regarding the company's financial performance.
- Company Background: Founded in 1981, Logitech focuses on designing software-enabled hardware solutions that enhance user experiences in work, creation, and gaming, reflecting its core values in the digital age.
- Market Positioning: As a publicly traded company on both the SIX Swiss Exchange and Nasdaq, Logitech continues to expand its market share through its brands, such as Logitech G, strengthening its influence in the global tech industry.
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