By Elsa Ohlen

Logitech is the latest company to withdraw its fiscal year 2026 guidance, citing heightened uncertainty around global trade.

Companies are unsure how a tariff war between the U.S. and the rest of the world may affect earnings.

The maker of computer-peripherals like keyboards, webcams and mice, pulled its full-year 2026 guidance "given the continuing uncertainty of the tariff environment," it said in a statement after market close Thursday. It confirmed its sales and profit outlook for the fiscal year 2025, which ended on March 31 -- it will report fourth-quarter earnings on April 29.

U.S.-listed shares fell 0.7% to $69.85 in premarket trading Friday, while futures tracking the Nasdaq 100 were up 0.6%. The company's Swiss-listed shares fell 1.3% in Europe.

Given that Logitech generates a third of sales from U.S. customers, with 40% of products manufactures in China, the pulled guidance doesn't come as a surprise, Vontobel's Michael Foeth said in a research note, Dow Jones Newswires reported.

"The high applicable tariffs on products from China and the uncertainty on further tariffs from other countries will inevitably have an impact on gross margins," Foeth said.

Delta Air Lines also scrapped its full-year 2025 guidance earlier this week. CEO Ed Bastian said that growth has largely stalled owing to economic uncertainty around global trade policy.

"Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook," the Delta said, adding that it will provide an update later in the year as visibility improves.

This is likely to be just the start as earnings season gets under way. JPMorgan Chase, Wells Fargo, Morgan Stanley are some of the big banks posting their quarterly updates Friday and some may adopt a wait-and-see attitude, and also think twice before committing to some investments.

Bank of America warned that earnings per share could drop between 5% and 35%, Barron's has previously reported . That wide range reflects the many moving parts still in play, including how countries will respond to U.S. tariffs.

Walmart also warned this week that lack of clarity on tariffs adds to uncertainty about its profit growth. The world's largest retailer may need to compromise on profitability to keep price low in case of high import taxes.

President Donald Trump announced sweeping tariffs on April 2 which sent markets into a tailspin. Trump has since announced a 90-day pause on the bulk of reciprocal tariffs except for China. Beijing has responded with 125% levies on U.S. imports.

Analysts and investors have expressed concerns of how tariffs might hit corporate earnings. Until there is more certainty about what global trade might look like in the coming months and years, expect more companies to be cautious on -- or even pull completely -- their guidance in the near-to-medium term.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 11, 2025 06:59 ET (10:59 GMT)

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