ONON

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On Holding AG faces a sharp post-earnings selloff after lowering FY26 revenue growth guidance, now expecting 'low 20s' percent growth. I downgrade ONON from Strong Buy to Buy, reflecting wholesale channel uncertainty, but maintain a bullish stance due to brand momentum and market share gains. Despite guidance cuts, ONON expects gross margins ≥65% and adjusted EBITDA margins of 19.5–20%, with direct-to-consumer growth offsetting wholesale weakness.

ON NYSE: ONON reported second-quarter 2026 net sales of CHF 850 million, up 21.6% at constant currency and 13.5% on a reported basis, as direct-to-consumer demand outpaced growth in its wholesale business. The Swiss sportswear company also raised its full-year gross-margin outlook while maintaining its adjusted EBITDA-margin forecast.

ONON's DTC momentum and Asia-Pacific growth drive stronger margins. The company raises its 2026 gross margin outlook.

On Holding AG is upgraded to a Buy after a sharp post-Q2 earnings dip, offering a compelling GARP setup. Q2 revenue grew 13.5% YoY with gross margin at 65.4%, but wholesale softness and cautious sell-in drove market disappointment. Despite uncertainties, ONON maintains ~20% FY26 top-line growth guidance and a strong margin outlook, with international and category expansion as key drivers.

On Holding AG (ONON) Q2 2026 Earnings Call Transcript

On Holding's quarterly revenue fell short of Wall Street expectations, triggering a sharp sell-off in its shares, as higher US tariff costs and cautious consumer spending weighed on the premium sportswear maker's performance. The Roger Federer-backed company reported second-quarter net sales below analysts' estimates on Tuesday, sending its shares ONON down 19%.

On Holding (ONON) came out with quarterly earnings of $0.44 per share, in line with the Zacks Consensus Estimate . This compares to a loss of $0.11 per share a year ago.

On Holding's Q1 earnings beat, margin gains and strong DTC, Asia-Pacific and apparel growth supported a higher profitability outlook despite tariff pressure.

On Holding pairs 20%-plus sales growth and wider margins with premium valuation, tariff exposure and rising investment demands that raise execution risk.