Why Did Logitech Stock Drop on Wednesday?

Core Insights - Logitech International's stock fell 6.4% despite exceeding sales and earnings expectations for fiscal Q3 2026 [1][4] - The company reported earnings of $1.93 per share on sales of $1.42 billion, surpassing analyst forecasts of $1.81 per share and $1.41 billion in sales [1][3] Financial Performance - Logitech experienced a 6% year-over-year sales growth in Q3 and improved its gross margin by 30 basis points to 43.2% [3] - The company reduced selling, general, and administrative costs while increasing research and development investments [3] - Non-GAAP profits improved by 21%, while GAAP profits were reported at $1.69 per share [4] Future Guidance - For Q4, Logitech forecasts sales between $1.07 billion and $1.09 billion, aligning with analyst expectations of $1.08 billion [5] - Full-year sales are projected to exceed $4.82 billion, with a pre-tax profit of approximately $160 million for Q4 and about $905 million for the year [5][6] Investment Consideration - The stock has a price-to-free cash flow ratio of 14.4x, with a dividend yield of 1.7% and a recent earnings growth of 28% [6] - Despite the positive outlook, Logitech was not included in a list of the top 10 stocks recommended by an analyst team [7]