On Holding (ONON) Q3 2026: Revenue and Earnings Beat Estimates
As seen on the 24/7 Wall St. homepage on November 10, 2026.
On Holding held full price in a promotional market and still posted record underlying margins, with a CHF 52.6 million U.S. tariff refund lifting gross margin to 72.6%. Management raised the full-year gross margin outlook to about 66% excluding those refunds and expects sales growth to accelerate in the fourth quarter.
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On Holding reported Q3 2026 adjusted EPS of $0.66 and revenue of $1.14 billion, both exceeding expectations of $0.40 and $931.2 million. That revenue figure represents 17.3% growth from the same quarter a year ago, and the beat extends the Swiss performance brand's streak of consecutive EPS beats to four quarters.
The single biggest earnings driver was a CHF 52.6 million refund of U.S. IEEPA tariffs after the Supreme Court invalidated those levies. That refund lifted gross margin to 72.6%, and even stripping out the windfall, gross margin reflected what management described as record underlying margins achieved without discounting in a heavily promotional market.
Every region posted its highest quarterly sales to date, with Asia Pacific leading at 31.1% growth. Direct-to-consumer sales rose 25%, powered by retail store expansion and stronger e-commerce traffic, while apparel and accessories both grew faster than footwear. The quarter did carry some reputational noise in China after a controversy involving soccer ambassador Kylian Mbappe rattled investor sentiment there.
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Looking ahead, management raised the full-year gross margin outlook to approximately 66% excluding tariff refunds, up from a prior floor of at least 65%. The company also guided for net sales growth in the low-20% range on a constant currency basis for the full year, implying CHF 3.47 billion to CHF 3.56 billion at current spot rates, with Q4 net sales growth expected to accelerate from Q3 levels. The adjusted EBITDA margin target of 19.5% to 20.0% excluding tariff refunds was left unchanged.
On's board also approved a share repurchase program of up to $1 billion in Class A ordinary shares through the end of December 2029, though no shares had been bought back as of September 30, 2026. The Cloudsurfer 3, described by co-CEO Caspar Coppetti as the first proof point of the brand's biggest innovation cycle, launched during the period, with strong pre-launch sell-out at run specialty retailers pointing to continued product momentum heading into the holiday quarter.
Mentioned: ONON