Logitech shares fell 6.11% to CHF 82.62 in Thursday trading, wiping out the year-to-date gain of 7.4% and leaving the stock up just 3.2% so far this year. A dividend drag of roughly CHF 1.36 over the previous two days accounted for only a small portion of the decline; the bulk reflected broader pressure on the tech sector from elevated overseas interest rates and a lack of buying volume that had left recent upward moves unsupported.
Analysts maintain a generally positive outlook. The consensus price target stands at CHF 94, implying 23% upside. Four analysts rate the stock a buy, five a hold and one a sell. Expected annual earnings growth is 10.9%, while the average EBIT margin of 14.7% exceeds the industry average of 12.0%. The stock trades at a forward P/E of 17x, below its long-term average of 18x. Julius Bär, which raised its target to CHF 90 from CHF 85 in August while keeping a hold rating, noted that customer and enterprise end markets remain robust and that strong product acceptance supports the outlook.
In its first fiscal quarter (2026/27), Logitech exceeded expectations. Revenue rose 7% to USD 1.23 billion, or 5% at constant currencies. Adjusted gross margin expanded 770 basis points year over year to 49.8%, and operating profit jumped 44% to USD 290.4 million. Growth was broad-based: the gaming segment, the company’s largest, grew 12% in dollar terms, while pointing devices posted double-digit gains. Zoll refunds also provided a tailwind to results, CEO Hanneke Faber said.
The upbeat numbers were partially offset by a serious incident at a semiconductor supplier’s manufacturing facility, which remains closed with no reopening date set. Logitech has factored approximately USD 20 million in headwinds into its second-quarter guidance and expects the impact could reach up to USD 200 million in the third quarter. Faber described the disruption as temporary and said the company is confident the issue will be resolved by the fourth quarter. Inventory levels are being used to cushion near-term supply constraints, CFO Matteo Anversa said, though he acknowledged that availability of critical components remains generally tight across the industry.
Whether additional supply-chain challenges materialize or a major investment bank places shares for sale remains to be seen, as the stock underperformed the market notably on Thursday.
