On Holding AG (ONON) is a prominent Swiss sportswear company renowned for its cutting-edge athletic footwear, apparel, and accessories geared towards running, outdoor activities, and tennis. The brand has gained a loyal following among athletes and fitness enthusiasts globally due to its innovative CloudTec cushioning technology, which provides both comfort and high-performance support.
Established in 2010 and headquartered in Zurich, Switzerland, On Holding AG operates in more than 55 countries. Despite facing challenges for most of the year, the company recently experienced a surge in bullish sentiment following its quarterly earnings report, resulting in a 19% increase over the past five days. However, the stock still lags, down 7.4% over three months and 30% over six months, standing approximately 35% below its 52-week high reached on Jan. 30.
On Holding AG recently announced record-breaking financial results for the third quarter of 2025, driven by strong global momentum and successful execution of its strategic priorities. The company achieved a net sales figure of CHF 794.4 million, reflecting a 24.9% year-over-year increase. This growth was propelled by robust demand across both direct-to-consumer and wholesale channels, with the apparel segment witnessing exceptional sales growth of 86.9%. The Asia-Pacific region significantly contributed to this growth, with triple-digit sales increase, highlighting On’s expanding global presence.
Key financial metrics revealed significant improvements in profitability, with the gross profit margin reaching 65.7%, up by 510 basis points from the previous year. The adjusted EBITDA margin also improved to 22.6%, leading to an absolute adjusted EBITDA of CHF 179.9 million, a 49.8% year-over-year increase. Net income surged to CHF 118.9 million, marking nearly a 290% rise, underscoring the company’s strong performance.
On’s direct-to-consumer channel experienced remarkable growth of 27.6% on a reported basis, driven by synergies between e-commerce and physical retail. Regional sales growth was broad-based, with the Americas up 10.3%, EMEA increasing by 28.6%, and Asia Pacific soaring by 94.2% year-over-year. Additionally, the company benefited from operational cost efficiencies, enhanced working capital management, and a robust cash position of CHF 961.8 million at the end of the quarter.
Confident in its strategic direction, On raised its full-year 2025 guidance, anticipating net sales growth of 34% on a constant currency basis, a gross profit margin near 62.5%, and an adjusted EBITDA margin above 18%. The company plans to continue investing strategically in marketing, retail expansion, and innovation while maintaining operational excellence and premium pricing strategies heading into 2026.
With strong backing from Wall Street analysts, On Holding AG is considered a compelling buy opportunity. The consensus rating is “Strong Buy,” and the average price target of $61.23 suggests a 40% potential upside from current levels, presenting an attractive investment prospect for growth-oriented investors. The stock has been rated by 23 analysts, receiving 16 “Strong Buy” ratings, 3 “Moderate Buy” ratings, 3 “Hold” ratings, and 1 “Moderate Sell” rating.
In conclusion, On Holding AG’s impressive financial performance, expanding global footprint, and strategic initiatives position the company for continued growth and success in the competitive sportswear market. Investors looking for a promising growth opportunity may find On Holding AG an appealing choice for their portfolio.
