Logitech International (LOGI +0.67%) stock tumbled 6.4% through 12:45 p.m. ET Wednesday despite beating on both sales and earnings this morning.
Heading into the company's fiscal Q3 2026 report, analysts forecast Logitech to earn $1.81 per share on sales of $1.41 billion. In fact, Logitech earned $1.93 per share on sales of $1.42 billion.
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Logitech Q3 earnings
Logitech grew sales 6% year over year in Q3 and added 30 basis points to its gross margin -- now 43.2%. The company shaved down its spending on selling, general, and administrative costs even as sales rose -- and research and development investments increased.
Result: Even as Logitech invested in its future, it managed to translate single-digit sales gains into a superb 21% improvement in per-share profits. It is worth noting that GAAP profits were only $1.69 per share; the "$1.81" profit that trounced estimates was non-GAAP. Still, as I look at the numbers, Logitech seems to have had a fantastic quarter.
CEO Hanneke Faber agrees, calling the quarterly results both "excellent" and "broad-based across categories, regions, and both consumer and business channels."
NASDAQ: LOGI
Key Data Points
Is Logitech stock a buy?
Turning to guidance, Logitech forecast $1.07 billion to $1.09 billion in Q4 sales (bracketing analysts' forecast for $1.08 billion). That should bring full-year sales to $4.82 billion or better, edging out forecasts.
On earnings, the company sees pre-tax profit of about $160 million for Q4 and about $905 million for the year.
Management did not give after-tax or free cash flow guidance. Still, with $905 million in trailing free cash flow, I get a 14.4x price-to-free cash flow ratio on the stock, which pays a 1.7% dividend and just grew earnings 28%.
To me, that makes Logitech stock look like a buy.
