On Holding’s 2029 Growth Targets and $1 Billion Buyback Drive Sharp Rerating

On Sets a Bigger Growth and Profitability Target

On Holding (ONON) jumped more than 12% Tuesday after its 2026 Investor Day in Zurich gave investors a new three-year financial framework. The Swiss sportswear company is targeting at least CHF 5.6 billion in net sales by 2029, a gross margin of at least 65% and an adjusted EBITDA margin of at least 22%.

The company also authorized its first-ever share repurchase program, covering up to $1 billion of Class A shares through the end of 2029. The announcements came as On reiterated its full-year 2026 outlook and outlined expansion across running, sneakers and apparel as well as new football and golf categories.

Key Points

• On targets at least CHF 5.6 billion in 2029 net sales, a gross margin of at least 65% and an adjusted EBITDA margin of at least 22%.
• The board authorized On’s first share repurchase program, allowing up to $1 billion of Class A shares to be repurchased through the end of 2029.
• Running, sneakers and apparel remain key growth pillars, while On is expanding into football and golf as it broadens its premium sportswear strategy.

On Sets Its Financial Ambitions Through 2029

On used its Investor Day to establish a new financial framework covering 2026 through 2029. The company expects high-teens annual net sales growth on a constant-currency basis, bringing revenue to at least CHF 5.6 billion by 2029, or close to $7 billion at current exchange rates.

Profitability is expected to expand alongside revenue. On is targeting a gross profit margin of at least 65% throughout the period and an adjusted EBITDA margin of at least 22% by 2029. Adjusted EBITDA measures operating profitability before interest, taxes, depreciation and amortization, with additional company-defined adjustments.

The combination is expected to produce adjusted EBITDA growth of more than 20% annually between 2026 and 2029.

For 2026, On reiterated its existing outlook. The company expects constant-currency net sales growth in the low-20% range, a gross margin of at least 65% and an adjusted EBITDA margin between 19.5% and 20%.

Third-quarter growth is expected to moderate to approximately 17% on a constant-currency basis. On said this reflects disciplined wholesale selling following its second-quarter results, alongside continued momentum in its direct-to-consumer business.

Why Did ONON Stock Surge?

The market reaction followed both the new financial targets and On’s first capital-return program.

The board authorized the repurchase of up to $1 billion of Class A ordinary shares through the end of December 2029. The authorization establishes the maximum amount available for repurchases over that period rather than requiring the entire amount to be purchased immediately.

The announcement adds capital returns to a strategy that remains centered on growth. On said its Premium Playbook is designed to combine product innovation, athlete partnerships, premium consumer experiences and full-price selling with increased operating efficiency as the company grows.

The stock rose more than 12% Tuesday, while the broader consumer discretionary market showed a much smaller move. Nike (NKE) and Lululemon Athletica (LULU) also posted more modest gains in the supplied market data, making On’s Investor Day announcements the central catalyst behind the sharp ONON price action.

On entered the session down more than 35% for 2026, adding context to the magnitude of Tuesday’s move.

Football, Golf and Apparel Expand On’s Growth Strategy

On’s growth plan extends beyond the running category that helped establish the brand. The company expects running, sneakers and apparel to make outsized contributions through 2029, supported by geographic expansion and growth across direct-to-consumer and wholesale channels.

Apparel has already become a faster-growing part of the business. Second-quarter apparel sales increased 56.2% in constant currency, while the company reported a 65.4% gross profit margin during the quarter.

Football and golf are the next additions to the company’s sports portfolio. On recently signed Kylian Mbappé, who will work with the company on footwear and apparel development and testing. Thierry Henry has also joined the company as Director of Football, while On plans to introduce football boots in 2027.

The expansion comes with additional investment requirements. On expects to continue spending on stores, technology, LightSpray manufacturing, product development and its entry into new sports categories while pursuing its 2029 profitability goals.

Pricing remains another central part of the strategy. Co-founder and Co-CEO Caspar Coppetti said On has the highest average selling price and lowest discount rates among its peers. He also said the company’s average product price has increased from $145 at its previous Investor Day three years ago to $270.

What It Means for Investors

The Investor Day gives investors specific benchmarks for measuring On’s progress over the next three years: at least CHF 5.6 billion in 2029 sales, gross margin of at least 65%, adjusted EBITDA margin of at least 22% and adjusted EBITDA growth above 20% annually.

The company is simultaneously expanding into additional sports, investing in direct-to-consumer distribution and maintaining its emphasis on premium pricing. That makes sales growth only one part of the framework; margins and the company’s ability to maintain full-price demand are also central to the targets announced Tuesday.

Nearer term, On expects third-quarter constant-currency sales growth of about 17% while maintaining its low-20% full-year 2026 growth outlook. That places attention on subsequent results as the company progresses from its current guidance toward the longer-term targets outlined at Investor Day.

Conclusion

On Holding’s Investor Day expanded the company’s growth framework while adding its first major share-repurchase authorization.

The company is targeting at least CHF 5.6 billion in annual sales and a 22% adjusted EBITDA margin by 2029, while maintaining a gross margin of at least 65%. Running, sneakers and apparel remain central to the plan, with football and golf creating additional areas of expansion.

Tuesday’s sharp move in ONON stock followed the combination of those multi-year financial targets, the $1 billion buyback authorization and management’s decision to reaffirm its 2026 outlook.

FAQs

Why did ONON stock rise Tuesday?

On Holding shares rose more than 12% after the company announced new 2029 sales and profitability targets, authorized its first share repurchase program and detailed its expansion strategy at its 2026 Investor Day.

What are On Holding’s 2029 financial targets?

On is targeting at least CHF 5.6 billion in net sales by 2029, a gross profit margin of at least 65% and an adjusted EBITDA margin of at least 22%. It also expects adjusted EBITDA to grow at an annual rate above 20% from 2026 through 2029.

How large is On Holding’s share buyback?

On’s board authorized the repurchase of up to $1 billion of Class A ordinary shares through the end of December 2029. It is the company’s first share repurchase authorization.

What new sports is On Holding entering?

On is expanding into football and golf. The company has signed Kylian Mbappé and appointed Thierry Henry as Director of Football, with football boots planned for 2027.

What is On Holding’s 2026 outlook?

On reiterated its outlook for low-20% constant-currency net sales growth, a gross profit margin of at least 65% and an adjusted EBITDA margin between 19.5% and 20% for 2026.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

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