On Holding AG (NYSE: ONON) surpassed CHF 3 billion in annual net sales for the first time, reaching CHF 3,014.0 million (+30.0% YoY), with a record gross margin of 62.8%. Q4 net sales hit CHF 743.8 million (+22.6%), beating the consensus revenue estimate of ~$896.42 million (~CHF 853M). Diluted EPS (Class A) came in at CHF 0.21 for Q4, while full-year diluted EPS was CHF 0.61. Despite the top-line beat, shares fell approximately 10.8% in premarket trading on March 3, 2026, as investors digested the 2026 guidance and a significant FX-driven decline in net income.
About On Holding AG
On Holding AG (NYSE: ONON) is a Swiss premium sportswear company founded in 2010 in Zurich, Switzerland by former triathlete Olivier Bernhard alongside David Allemann and Caspar Coppetti. The company designs and distributes high-performance footwear, apparel, and accessories for running, outdoor, training, and tennis, built around its proprietary CloudTec and LightSpray technologies.
On went public on the NYSE in September 2021 at $24 per share. As of early March 2026, On carries a market capitalization of approximately $15.35 billion, a trailing P/E ratio of roughly 58, and a forward P/E of approximately 31.75. The company employs nearly 4,000 team members globally and is present in more than 90 countries. Martin Hoffmann serves as CEO and CFO. On does not pay a dividend.
Top Financial Highlights
- Full-year net sales reached CHF 3,014.0 million, up 30.0% YoY (35.6% on a constant currency basis)
- Q4 2025 net sales hit CHF 743.8 million, up 22.6% YoY (30.6% constant currency)
- Full-year gross profit margin expanded to 62.8%, up from 60.6% in 2024; Q4 gross margin reached a record 63.9%
- Full-year net income declined 15.9% to CHF 203.7 million (from CHF 242.3 million), driven by a CHF 173.2 million foreign exchange loss versus a CHF 67.7 million FX gain in the prior year
- Full-year basic EPS (Class A): CHF 0.62 (down from CHF 0.75); Q4 basic EPS: CHF 0.21 (down from CHF 0.28)
- Adjusted EBITDA surged 46.3% to CHF 567.0 million, with adjusted EBITDA margin rising to 18.8% from 16.7%
- Operating result jumped 78.2% to CHF 377.0 million for the full year
- Cash flow from operations: CHF 359.5 million (down from CHF 510.6 million, primarily due to working capital changes)
- Cash and cash equivalents reached CHF 1,019.9 million, up 10.03% from CHF 924.3 million
- DTC channel sales rose 33.7% to CHF 1,260.5 million; wholesale grew 27.5% to CHF 1,753.4 million
- Asia-Pacific net sales surged 96.4% to CHF 511.1 million, surpassing half a billion for the first time
- Apparel revenue soared 68.2% to CHF 169.9 million; accessories jumped 124.1% to CHF 39.6 million.
- 2026 guidance: net sales of at least CHF 3.44 billion (23%+ CC growth), gross margin of at least 63.0%, adjusted EBITDA margin of 18.5%-19.0%
Beat or Miss?
| Metric | Reported (Q4 2025) | Analyst Consensus Estimate | Difference/Analysis |
| Q4 Net Sales | CHF 743.8M | ~$896.42M / ~CHF 853M | Beat by ~5.7% on a USD basis |
| Q4 Basic EPS (Class A, CHF) | CHF 0.21 | $0.18 to $0.26 | Beat the lower-end estimates; in-line to slightly below higher-end |
| Q4 Gross Margin | 63.9% | ~62.0%-63.0% (implied) | Beat, setting a new Q4 record |
| Full-Year Net Sales | CHF 3,014.0M | ~CHF 2,940M (prior On guidance) | Beat the company’s own guidance by ~2.5% |
| Full-Year Adjusted EBITDA Margin | 18.8% | 17.0%-17.5% (prior guidance) | Beat prior full-year guidance significantly |
| 2026 Revenue Guidance | At least CHF 3.44B (23%+ CC) | Consensus ~CHF 3.68-3.73B | Below some analyst estimates, a likely factor in the stock decline |
What Leadership Is Saying
“Surpassing the CHF 3 billion annual revenue milestone with record profitability is a profound validation of our vision to build the world’s most premium global sportswear brand. We are witnessing a fundamental societal shift, as people globally replace traditional markers of status with a commitment to health, longevity, and performance. On is uniquely positioned to deliver what this discerning consumer demands from scaling breakthrough innovations like LightSpray to deepening our cultural resonance and delivering our fullest brand expression from toe-to-head. We are building a brand designed for the future of movement.” By David Allemann, Co-Founder and Executive Co-Chairman
“By charting our own course and executing with discipline against our strategic priorities, we have built a powerful financial engine that is driving record results. The strength of our premium strategy allows us to exceed our high aspirations while providing the flexibility to reinvest in the high-return areas that we expect will fuel our growth for years to come. Our vision is proving itself at a new scale — from the exceptional productivity of our growing retail footprint to the compounding value of our multi-category expansion. This success is a testament to our nearly 4,000 team members who execute with focus and passion every day. We enter 2026 with confidence and conviction, ready to ‘Dream On’ bigger and bolder than ever before.” By Martin Hoffmann, CEO and CFO
Historical Performance
Q4 2025 vs. Q4 2024
The following table compares On Holding’s Q4 2025 performance against Q4 2024, highlighting the strong top-line and operational gains alongside the net income decline driven by foreign exchange headwinds.
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Net Sales | CHF 743.8M | CHF 606.6M | +22.6% |
| Gross Profit | CHF 475.3M | CHF 376.8M | +26.1% |
| Gross Margin | 63.90% | 62.10% | +180 bps |
| Operating Result | CHF 82.5M | CHF 53.1M | +55.4% |
| Net Income | CHF 69.1M | CHF 89.5M | -22.9% |
| Basic EPS (Class A) | CHF 0.21 | CHF 0.28 | -25.0% |
| Adjusted EBITDA | CHF 131.0M | CHF 99.4M | +31.8% |
| Adjusted EBITDA Margin | 17.60% | 16.40% | +120 bps |
| SGA Expenses | CHF 392.8M | CHF 323.7M | 21.30% |
Full-Year 2025 vs. Full-Year 2024
| Category | FY 2025 | FY 2024 | Change (%) |
| Net Sales | CHF 3,014.0M | CHF 2,318.3M | +30.0% |
| Gross Profit | CHF 1,893.6M | CHF 1,405.7M | +34.7% |
| Gross Margin | 62.80% | 60.60% | +220 bps |
| Operating Result | CHF 377.0M | CHF 211.6M | +78.2% |
| Net Income | CHF 203.7M | CHF 242.3M | -15.9% |
| Basic EPS (Class A) | CHF 0.62 | CHF 0.75 | -17.3% |
| Adjusted EBITDA | CHF 567.0M | CHF 387.6M | +46.3% |
| Adjusted EBITDA Margin | 18.80% | 16.70% | +210 bps |
| Cash from Operations | CHF 359.5M | CHF 510.6M | -29.6% |
| Cash on Hand | CHF 1,019.9M | CHF 924.3M | 10.30% |
Competitor Comparison
| Metric | On Holding (FY 2025) | Nike (Q4 CY2025 / FY Q2) | Adidas (FY 2025 Prelim.) | Deckers/HOKA (Q4 CY2025) |
| Quarterly Revenue | CHF 743.8M (~$835M) | $12.43B | EUR 6.08B | $1.96B |
| Quarterly Revenue YoY | +22.6% | Flat | +11% CC (adidas brand) | +7.1% |
| Annual Revenue | CHF 3,014.0M (~$3.4B) | ~$46.4B (est. trailing) | EUR 24.81B | $4.99B (FY Mar 2025) |
| Annual Revenue YoY | +30.0% | -12% (FY Q4 Jun 2025) | +4.8% reported | +16.3% |
| Gross Margin | 62.8% | 40.3% (FY Q4) | 50.6% | 57.9% (FY) |
| Operating Margin | 12.5% | ~8.0% (Q4 CY2025) | 8.3% | 23.6% (FY) |
| Market Cap | ~$15.35B | ~$97B | ~EUR 43B | ~$14.56B |
On Holding leads the peer group in revenue growth and gross margin, reflecting the power of its premium positioning. Nike is navigating a turnaround phase with flat-to-declining revenues, while Adidas returned to double-digit growth after clearing Yeezy inventory. Deckers, parent of HOKA – On’s closest competitor in the premium running category — posted solid but decelerating growth, with HOKA brand revenue reaching $2.23 billion (+23.6%) for its fiscal year ending March 2025.
How the Market Reacted
Despite beating consensus on both the top and bottom lines for Q4 2025, On Holding shares fell sharply in premarket trading on March 3, 2026, dropping approximately 10.8% to $41.69 from the prior close of $46.76. CNBC reported the stock was “down more than 10% premarket after it reported record sales and improved profitability in 2025″. The sell-off appears driven by concerns that On’s 2026 guidance for at least CHF 3.44 billion in reported net sales (23%+ constant currency growth) fell short of some analyst projections in the CHF 3.68-3.73 billion range.
Additionally, the 15.9% decline in GAAP net income – caused by a CHF 173.2 million foreign exchange loss – may have weighed on sentiment, even as adjusted EBITDA margins reached record highs. The reaction underscores the elevated expectations baked into On’s premium valuation, where even strong operational results can disappoint when forward guidance does not match the market’s most optimistic projections.
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