ONON Stock Forecast & Price Target

On Holding reported a significant revenue growth of 22.6% year-over-year, reaching CHF 744 million, which was ahead of consensus expectations, and saw sales growth of 31% in constant currency. The company achieved a gross margin expansion of 180 basis points to 63.9%, demonstrating strong operational efficiency. Additionally, On Holding's direct-to-consumer channel contributed to a 30% year-over-year growth in constant currency, highlighting the effectiveness of its marketing strategies and overall brand strength.

On Holding has reported a flat EBITDA margin of 18.8% and a revenue forecast that fell short of expectations, primarily attributed to the strengthening Swiss franc, which poses a significant foreign exchange headwind of approximately 800 basis points. Additionally, the company's gross margins are projected to contract by over 50 basis points in 2026 due to a weaker promotional environment, increased markdowns, and a slowdown in direct-to-consumer (DTC) demand, compounded by new tariffs. Furthermore, external economic risks such as volatile commodity costs, rising interest rates, and declining consumer confidence are contributing factors to a negative outlook for On Holding's stock.