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ONON · Analysis updated Nov 10, 2026, 4:47 PM ET
Why is On Holding AG (ONON) stock moving?
On posted record Q3 results on Nov 10. Net sales rose 17.2% to CHF 931.4M, in line with estimates. DTC grew 25%, apparel grew 38.7%, adjusted EBITDA rose 43% and adjusted EPS of 0.54 beat the 0.38 estimate. A CHF 52.6M tariff refund inflated reported gross margin. Management raised the full-year gross margin outlook to about 66% excluding refunds, but left full-year sales growth at the low 20s, which investors read as a cautious midpoint. Wholesale growth slowed to 12.2% and the Americas grew 12%. Truist flagged softer APAC and DTC trends, and Goldman trimmed its target to $41 but kept Buy. The stock closed near $34.70 on heavy volume of about 24.7M shares, down roughly 7.5% from $37.53. It had rallied about 13% in the two weeks before the print, so the good news was partly priced in. Valuation is moderate (P/E around 23-25), the average analyst target is about $44, and the beta is above 2. Fundamentals are solid, but near-term momentum is negative and the sell-off may continue to settle.
News behind the analysis
- On Holding (ONON) Reports Strong Q3 Sales Growth Amid Tariff ChallengesQ3 net sales rose 17.2% to CHF 931.4M, with DTC up 25% and wholesale up 12.2%. A one-time CHF 52.6M tariff refund lifted gross margin. Shares fell as the sales outlook was left unchanged.
- On Holding Q3 2026 Earnings Call TranscriptManagement reiterated full-year net sales growth in the low 20s at constant currency. It expects gross margin of about 66% excluding tariff refunds. DTC share rose to 42.2%.
- On Holding: Q3 Earnings SnapshotAP/Zacks snapshot: Q3 net income of 59 cents per share, or 66 cents adjusted.
- Why ONON Stock Is Falling Premarket After Record Q3 SalesApparel sales rose 38.7% and the full-year gross margin outlook was raised. Revenue was in line with estimates and the full-year growth outlook was unchanged, so shares fell about 4.5% premarket.
- ON Holding earnings analysis: questions answered and next catalystsEPS of 0.54 beat the 0.38 estimate, while revenue of 931.4M was in line. The shares fell about 8% intraday.
- Earnings call transcript: On Holding beats Q3 2026 profit forecast, shares fallShares fell 8.47% premarket to $34.35. Investors appeared to weigh the outlook, valuation and rising inventory.
- On Holding Q3 Net Sales Rise 17% to CHF 931 Million Amid Tariff-Boosted MarginsAdjusted EBITDA rose 43% to CHF 257M. APAC grew 31%, the Americas 12%, and wholesale growth moderated to 12%. The report also mentions a buyback authorization.
- ON Holding AG-Class A Q3 Earnings Beat but Sales and Guidance DisappointThe guidance midpoint trailed consensus. The report notes a 13.1% gain over the prior two weeks before the print.
- Goldman Sachs lowers On Holding price target on margin viewGoldman cut its target to $41 from $44 and kept its Buy rating.
- Truist reiterates Buy on On Holding stock, cites holiday strengthTruist kept Buy and a $40 target. Americas beat expectations, while softer APAC and DTC trends raised questions about the long-term algorithm.
About On Holding AG
On Holding is a Swiss sportswear company that makes premium running shoes, known for its CloudTec cushioned soles, and a growing line of apparel and accessories. It has grown fast by selling at full price, with a rising share of sales coming directly to customers, and it sells more and more outside its home markets, especially in Asia-Pacific.
How it makes money
Most revenue comes from shoes, roughly 90% or more, with apparel and accessories making up a small but fast-growing share. It sells through wholesale partners such as sporting-goods and running stores, and directly to consumers through its website and its own shops. Direct sales reached a record of about 46% of net sales in Q2 2026. The Americas make up more than half of sales, and Asia-Pacific is now over one-fifth. Q2 2026 net sales were about CHF 850 million, and the gross margin was about 65%.
What usually moves ONON
- Sales growth versus expectations, especially in the Americas
- Gross margin and full-price selling discipline
- US import tariffs and currency swings
- Expansion in Asia-Pacific and apparel
- Competition and discounting in running footwear