On Holding AG Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.48%.
Did ONON Beat Earnings? Q1 2026 Results
On Holding delivered a blowout first quarter for fiscal 2026, posting earnings per share of $0.47 against a consensus estimate of $0.32, a beat of nearly 50%, while revenue of $1.07 billion cleared Wall Street's $876.41 million forecast by 21.56% and rose 11.0% year over year. The standout result was powered by a 430-basis-point expansion in gross profit margin to 64.2%, driven by premium brand positioning, reduced air freight costs, and favorable currency movements that more than offset the roughly $70.43 million in IEEPA tariffs the Swiss sportswear brand absorbed during the quarter. Adjusted EBITDA climbed 45.4% to $223.21 million, with net income rising 82.2% to $132.29 million, aided by a dramatic reduction in foreign exchange losses following On's shift of its functional currency from Swiss francs to U.S. dollars. The quarter also brought a leadership transition, with co-founders David Allemann and Caspar Coppetti stepping in as Co-CEOs. Looking ahead, On reiterated at least 23% constant currency net sales growth for full-year 2026 and raised its gross profit margin guidance to at least 64.5%.
- Premium brand positioning and full-price discipline driving gross profit margin expansion of 430 basis points YoY to 64.2%
- Asia-Pacific region grew 44.4% (61.4% constant currency), now exceeding 20% of global net sales, led by China and South Korea
- Apparel category grew 45.1% becoming a more important brand entry point
- Reduced air freight costs and operational efficiency gains across distribution
- Favorable foreign exchange impact on gross margin
- Functional currency change from CHF to USD reduced FX losses to CHF 0.3M from CHF 14.5M YoY
- Wholesale door expansion and continued strength with key account partners
- Cloudtilt franchise performance and contributions from Cloudmonster and Cloudrunner launches
“Q1 was an outstanding start to the year and another strong proof point of our premium strategy in action. On is becoming more global, more multi-dimensional and more deeply rooted in different communities around the world. As David and I step into our new roles as Co-CEOs, we do so with strong commitment to the continuity of our strategy, values and entrepreneurial spirit that have defined On over the past 16 years. I also want to express our heartfelt gratitude to our dear friend and partner Martin. His leadership helped build the financial strength, operational rigor and clarity that have brought us to this moment. As we continue to scale from this very strong foundation, we believe the next chapter of On can be even stronger as we continue to Dream On.”
On Holding CEO, on the earnings call
Forward Guidance & Outlook
On reiterates its full-year 2026 constant currency net sales growth guidance of at least 23%, with DTC, APAC, and apparel expected to outperform. At current spot rates, this implies reported net sales of at least CHF 3.51 billion. The company raised its profitability outlook: gross profit margin is now expected to reach at least 64.5% (up from prior guidance), materially ahead of 2025 despite additional tariff headwinds, and adjusted EBITDA margin is expected in the range of 19.5% to 20.0%. Guidance continues to embed a 20% incremental tariff rate on products imported to the U.S. from Vietnam and excludes any potential tariff refunds.
ONON YoY Financials
ONON Revenue by Segment
ONON Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.