Why did LOGI's Q2 2025 EPS fall short of forecasts?

Logitech's Q2 2025 EPS fell short of forecasts due to several factors: 1. **Market Conditions**: The broader market conditions, including the impact of tariffs and inflation, have contributed to a downturn in the tech sector, affecting Logitech's performance. 2. **Geopolitical Factors**: The uncertainty surrounding geopolitical factors, such as the imposition of tariffs by the US government, has created a climate of investor uncertainty, leading to a decline in market confidence and, subsequently, stock prices. 3. **Consumer Sentiment**: Declining consumer sentiment, influenced by economic indicators such as revised growth expectations and concerns over recession, has adversely affected Logitech's revenue and profitability. 4. **Strategic Investments**: The company's strategic investments in areas like AI-powered hiring solutions through SmartRecruiters and data center switching solutions via Huawei have required significant upfront investments, potentially impacting short-term profitability. In summary, Logitech's Q2 2025 EPS falling short of forecasts can be attributed to a combination of market conditions, geopolitical factors, consumer sentiment, and strategic investments. These factors have created a challenging operating environment for the company, leading to a shortfall in earnings relative to market expectations.