Logitech Stock Slides as Supply Chain Disruption Overshadows Q1 Earnings Beat

Logitech International (LOGN) shares fell more than 7% on Tuesday after the company warned of a major supply chain disruption that overshadowed a strong fiscal first-quarter earnings report. The negative outlook prompted investors to look past the headline revenue and profit beat, focusing instead on future uncertainty.

Supply Chain Warning Hits Outlook

The primary driver of the sell-off was a disclosure about a "serious incident" at a key semiconductor supplier. Logitech's management warned that the event, for which there is no confirmed reopening date, could have a substantial impact on future revenue.

The company projects the disruption could reduce revenue by as much as:

• $20 million in the second quarter
• $200 million in the third quarter

This uncertainty about component availability introduces significant risk to the company's production capabilities and sales forecasts for the coming months.

Q1 Beat Clouded by One-Time Items

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While Logitech's fiscal Q1 2027 results surpassed analyst expectations, the underlying quality of the earnings was called into question. The company reported adjusted earnings per share of $1.85 on revenue of $1.23 billion, beating consensus estimates of $1.26 and $1.19 billion, respectively.

However, analysts noted the results were inflated by a one-time $61 million U.S. tariff refund. According to the report, excluding this item would have resulted in non-GAAP operating income growth of 14% year-over-year, far below the reported 44% figure.

Analyst Downgrades and Weak Guidance

Adding to the negative sentiment, Logitech issued a Q2 profitability outlook that fell short of market expectations. The company guided for non-GAAP EBIT of $185–$210 million on revenue growth of just 0–3%. Analysts at UBS cautioned this forecast would likely trigger reductions in consensus estimates and signaled more downside risk.

The weak guidance compounded existing bearishness from firms like BofA Securities, which had already downgraded the stock to Sell ahead of the earnings release. In Tuesday's trading, Logitech shares fell 7.2% to CHF 81.50, near the session low of CHF 79.82.