ON (NYSE:ONON – Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.47 by $0.18, FiscalAI reports. The business had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.11 billion. ON had a net margin of 12.09% and a return on equity of 22.92%. The company’s quarterly revenue was up 17.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.43 earnings per share.
Here are the key takeaways from ON’s conference call:
- On reported record Q3 sales of CHF 931.4 million, up 17.8% in constant currency, with underlying gross margin at a record 66.9% and adjusted EBITDA margin at a record 21.9% excluding one-off items.
- The company reiterated its full-year sales-growth outlook in the low 20s at constant currency and raised its gross-margin outlook, excluding tariff refunds, to around 66%; it expects Q4 growth to accelerate, led primarily by DTC. Q3 DTC growth was 24.8%, though management said it came in slightly below its internal target.
- New products are showing strong early demand: Cloudsurfer 3 sold through at more than four times the launch-week rate of its predecessor, while LightSpray demand exceeded available supply. On plans to expand LightSpray production, including a Vietnam facility, and roll its new foams across more running franchises.
- Investment in technology, marketing, and new sports is increasing costs: SG&A excluding share-based compensation rose 270 basis points as a share of sales, and management said material SG&A leverage is expected to build from 2027. The company maintained its adjusted EBITDA margin outlook of 19.5%–20%, excluding tariff refunds.
ON Stock Down 0.8%
NYSE:ONON traded down $0.28 during trading hours on Wednesday, hitting $34.41. 5,437,900 shares of the company’s stock traded hands, compared to its average volume of 7,393,537. The stock’s fifty day moving average price is $31.79 and its two-hundred day moving average price is $36.41. The firm has a market cap of $21.96 billion, a P/E ratio of 23.43, a P/E/G ratio of 0.74 and a beta of 2.05. The company has a debt-to-equity ratio of 0.25, a quick ratio of 2.25 and a current ratio of 2.83. ON has a twelve month low of $26.36 and a twelve month high of $51.08.
ON News Roundup
These are some of the ONON news items that stood out recently:
- Positive Sentiment: On reported Q3 revenue growth of 17.2%, stronger-than-expected EPS, and 25% growth in direct-to-consumer sales. It also raised its 2026 comparable gross-margin outlook to about 66%, with adjusted EBITDA margin guidance of 19.5%–20%, and expects Q4 growth to accelerate. On raises 2026 gross margin outlook
- Neutral Sentiment: UBS sees a multiyear growth opportunity but cautions that promotional activity could pose a risk. UBS on growth and promotional risks
- Negative Sentiment: The main concern is that Q3 profitability benefited from a CHF 52.6 million U.S. tariff refund, which may not recur. On also left its full-year sales-growth outlook unchanged in the low-20% range, prompting questions about underlying momentum; inventory growth and launch risks add to caution. Barclays trimmed its target to $42 from $44, while Goldman Sachs lowered its target to $41. Analysis of tariff benefit and unchanged outlook
Wall Street Analysts Forecast Growth
ONON has been the topic of a number of research analyst reports. Guggenheim set a $42.00 target price on ON in a report on Friday, September 11th. Citigroup reissued a “buy” rating on shares of ON in a research report on Wednesday, September 23rd. Capital One Financial set a $28.00 price objective on ON in a research note on Tuesday, September 8th. Berenberg Bank set a $38.00 price objective on shares of ON in a report on Monday, September 14th. Finally, Jefferies Financial Group reiterated an “underperform” rating on shares of ON in a research note on Tuesday, October 20th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, ON has a consensus rating of “Moderate Buy” and an average target price of $44.11.
Get Our Latest Stock Analysis on ON
Insider Buying and Selling
In related news, insider Olivier Bernhard purchased 65,000 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The stock was acquired at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the completion of the acquisition, the insider owned 5,228,184 shares in the company, valued at $160,348,403.28. This trade represents a 1.26% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Caspar Coppetti purchased 65,000 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was bought at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the completion of the purchase, the chief executive officer directly owned 2,440,855 shares of the company’s stock, valued at $74,861,022.85. The trade was a 2.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure.
About ON
On Holding AG, which trades on the New York Stock Exchange under the symbol ONON, is a Swiss sportswear company that develops and sells performance footwear, apparel and accessories. Its products serve runners and other athletes, as well as consumers seeking athletic-inspired everyday wear. The company is known for its running shoes, which feature its CloudTec cushioning technology. On also offers apparel and equipment for activities including running, training and outdoor sports, selling through wholesale partners and its own retail and online channels.
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