GET DAILY SIGNALSOn Holding (ONON) Posts Record Q3 Sales Growth of +17% and +25% EPS Beat
Key Takeaways
- On Holding reported record third-quarter net sales of CHF 931.4 million, up 17.2% year over year (17.8% on a constant-currency basis).
- Adjusted diluted earnings per share (EPS) reached CHF 0.54, well above the CHF 0.38 consensus estimate and up 25.6% from CHF 0.43 a year earlier.
- Reported gross margin hit a record 72.6%, but that figure includes a one-time CHF 52.6 million U.S. tariff refund; excluding it, gross margin was 66.9%.
- The company raised its full-year gross margin outlook to around 66% (excluding tariff refunds) while reaffirming low-20s constant-currency net sales growth for 2026.
- Despite the earnings beat, shares slid in premarket and early trading as investors focused on moderating revenue growth and the one-off nature of the refund.
- For more context on this stock, explore its Major News, Today's Price Move, Price Targets, and Forecast pages.
- Looking for automated market ideas? Explore Trending AI Robots for AI-driven trading signals.
Earnings Context and Why It Matters
On Holding (ONON), the Swiss performance sportswear brand, has grown into one of the most closely watched names in athletic footwear. This third-quarter report carries extra weight because it is the first since the company laid out its multi-year "On Premium Playbook" growth strategy at its Investor Day. Investors are watching whether On can sustain its premium positioning and full-price discipline in a promotional, inventory-heavy footwear market, while still delivering the double-digit growth that justifies its valuation. The quarter also lands amid leadership and macro uncertainty, including tariff dynamics and a leadership transition, making the read on margins, direct-to-consumer (DTC) momentum, and forward guidance especially important for the stock's trajectory. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Results
On reported record net sales of CHF 931.4 million for the third quarter ended September 30, 2026, an increase of 17.2% year over year, or 17.8% at constant currency. Results were broadly in line with analyst expectations of roughly CHF 930 million. Direct-to-consumer (DTC) sales rose 25% to CHF 393.3 million, representing 42.2% of total sales, while wholesale grew 12% to CHF 538.2 million. Apparel was a standout, climbing 38.7% to CHF 69.5 million.
Adjusted diluted EPS came in at CHF 0.54, beating the CHF 0.38 consensus and up 25.6% from CHF 0.43 in the prior-year quarter. Net income rose 36.9% to CHF 162.8 million. Reported gross margin reached a record 72.6%, though this included a one-time CHF 52.6 million U.S. tariff refund; excluding that benefit, gross margin was 66.9%, still a record and up from 65.4% in the second quarter.
On guidance, the company raised its full-year gross margin outlook to around 66% excluding tariff refunds (approximately 67.5% including them), up from "at least 65%," while maintaining its full-year 2026 net sales growth outlook in the low-20s range at constant currency.
Market Reaction and Investor Sentiment
The market's initial reaction was negative despite the earnings beat. ONON shares fell roughly 4.5% in premarket trading and were down about 8% intraday, extending a roughly 19% year-to-date decline. The cautious tone reflects a central tension: profitability is improving, but revenue growth has now decelerated for a third straight quarter, and the headline EPS beat was meaningfully boosted by the one-time tariff refund rather than by stronger underlying demand. Investors also noted that management kept its full-year revenue guidance unchanged rather than raising it, and that some wholesale holiday deliveries were pulled forward from the fourth quarter, creating a near-term headwind. Sentiment remains divided between confidence in On's premium brand and concern about a softer, promotional athletic-footwear market.
Forward Outlook and Key Factors to Monitor
Management expects fourth-quarter sales growth to accelerate, supported by its holiday campaign, new product launches, and continued DTC momentum, even as it holds the line on full-price selling in a promotional environment. Investors will be watching whether that acceleration materializes, particularly given that DTC growth landed slightly below internal plans in the third quarter and some wholesale business was borrowed from the fourth quarter.
Beyond the next quarter, several catalysts are worth monitoring. The Cloudsurfer 3 launch represents the first proof point of On's largest innovation cycle, with a broader rollout beginning in January 2027. The company's entry into new sports—football (soccer) now and golf in the first half of 2027—adds long-term growth optionality but also near-term investment costs in selling, general, and administrative (SG&A) expenses.
Finally, keep an eye on margin quality. The true underlying gross margin of 66.9% (excluding the tariff refund) is a record, but investors will want to see that expansion continue on a clean, comparable basis. With a CFO transition underway and tariff policy still evolving, the durability of margins and the pace of top-line growth will be central to how the market values ONON going forward. From what I see, this is important because margin sustainability often drives long-term valuation multiples in this sector.
Using Tickeron’s AI Tools in My Research
I frequently rely on Tickeron’s AI Screener to filter opportunities in the consumer sector and compare names like ONON against peers based on technical patterns and fundamentals. It helps surface relevant setups quickly without manual effort. In this case, it confirmed the stock’s relative strength in apparel trends while highlighting broader market caution. This kind of tool fits naturally into my routine when reviewing earnings and guidance updates.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ONON's RSI Indicator recovers from overbought zone
The 10-day RSI Oscillator for ONON moved out of overbought territory on November 05, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 instances where the indicator moved out of the overbought zone. In 26 of the 31 cases the stock moved lower in the days that followed. This puts the odds of a move down at 84%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ONON declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
ONON broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 02, 2026. You may want to consider a long position or call options on ONON as a result. In 67 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 75%.
The Moving Average Convergence Divergence (MACD) for ONON just turned positive on November 03, 2026. Looking at past instances where ONON's MACD turned positive, the stock continued to rise in 31 of 46 cases over the following month. The odds of a continued upward trend are 67%.
ONON moved above its 50-day moving average on October 05, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ONON crossed bullishly above the 50-day moving average on October 07, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 61%.
Following a +8.73% 3-day Advance, the price is estimated to grow further. Considering data from situations where ONON advanced for three days, in 212 of 287 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
The Aroon Indicator entered an Uptrend today. In 114 of 192 cases where ONON Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 59%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 40 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. ONON’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: ONON's P/B Ratio (6.533) is slightly higher than the industry average of (2.998). ONON has a moderately high P/E Ratio (31.133) as compared to the industry average of (12.296). Projected Growth (PEG Ratio) (0.478) is also within normal values, averaging (0.949). Dividend Yield (0.000) settles around the average of (0.057) among similar stocks. ONON's P/S Ratio (4.439) is very high in comparison to the industry average of (1.162).
The Tickeron Profit vs. Risk Rating rating for this company is 86 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ONON’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 92 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Industry WholesaleDistributors
Advertisement