Logitech poised for solid Q3 report as it navigates tariffs, regains momentum in China

Logitech International SA (USA) (NASDAQ:LOGI) is expected to deliver a solid fiscal third quarter that underscores its core strengths and profitable growth trajectory, according to Wedbush analysts.

For the fiscal third quarter, Wedbush forecasts revenue of $1.415 billion, up 6% year-over-year, compared with consensus expectations of $1.402 billion and company guidance of $1.375 billion to $1.415 billion.

The firm models non-GAAP operating income of $290 million and earnings per share of $1.75, slightly above consensus estimates.

Gross margin is expected to come in at about 43%, reflecting modest year-over-year and sequential pressure, within management’s guidance range of 42% to 43%.

“We expect Logitech to report consistent growth for the next several quarters as it diversifies its category and geographic strengths,” the analysts wrote.

They repeated their ‘Outperform’ rating and $135 12-month price target on Logitech, which traded down almost 5% at about $91 on Tuesday afternoon.

Wedbush said the company has navigated recent tariff changes effectively while staying focused on its core initiatives and expanding its total addressable market.

“Fiscal Q3 2026 results should continue to demonstrate Logitech’s new growth path as it regains market share in China, reaccelerates video conferencing, and continues to lead in personal workspace (PWS) accessories across its markets,” the analysts wrote.

While Logitech withdrew its fiscal 2026 guidance due to uncertainty around the scope and impact of tariffs, Wedbush noted that year-to-date performance, third-quarter guidance and typical seasonality point to a stronger full-year outcome than previously anticipated. The firm wrote that Logitech does not appear to have relied heavily on holiday promotions, suggesting margins recovered faster than expected.

Wedbush added that recent product updates, disciplined inventory management and improving conditions in China support confidence in the upcoming quarter and forward outlook, with a rebound in video collaboration and expansion into new end markets expected to offset domestic holiday softness.

Wedbush highlighted Logitech’s balance sheet as a source of strategic flexibility, noting the company holds roughly $9 per share in cash and carries no debt. “Logitech holds $9 per share in cash and has no debt, positioning it to accelerate growth through small tuck-in M&A, facilitate share repurchases, and expand its dividend,” the analysts wrote.

The firm expects part of the company’s approximately $1.5 billion cash reserve to be deployed toward small acquisitions, particularly within the gaming segment.

Logitech will hand down its Q3 earnings after markets close on January 27.