Why is Logitech stock tumbling today?

Logitech International SA's stock plunged 12.4% in early trading after the company released a mixed earnings report for Q2 FY2027. While the PC peripherals maker reported a strong beat in Q2, investors were left disappointed by a cautious outlook for Q3, which is expected to see a decline in net sales. The company revealed that a semiconductor supplier experienced a serious incident at its manufacturing facility, leading to a closure at the end of June.

Although the facility reopened in September and ramped up production, current capacity remains below required levels. For Q3, Logitech guided non-GAAP earnings per share between $1.34 and $1.51, and revenue between flat and down 5% year-over-year. Gross margins are also expected to decline due to higher logistics and material costs.

Despite the challenges, Logitech highlighted that Q2 was another quarter of growth, marking its 11th consecutive quarter of year-over-year revenue growth. However, the broader U.S. equity market failed to provide any support, with the S&P 500 and NASDAQ essentially flat on the day. The company expects full production to resume by the end of the year, but the recovery timeline left near-term sentiment negative, pushing shares toward the lower end of its 52-week range.