How does on holding ag make money?

on holding ag generates $3.7B in annual revenue (annual revenue).

What is ONON's XVARY composite score?

on holding ag (ONON) has an XVARY composite score of 46/100, rated below average. This combines growth, value, risk, and momentum factors.

ONON — on holding ag stock analysis

Start here if you're new

what it is

On sells running shoes, apparel, and accessories through stores, online, and partners.

how it gets paid

Last year On made $3.7B in revenue. Americas was the main engine at $1.93B, or 64% of sales.

what just happened

On beat by $0.04 a share, even with the stock still priced at 70.0x trailing profit.

At a glance

B+ balance sheet — decent shape, but not bulletproof

70.0x trailing p/e — you're paying up for this one

16.5% return on capital — nothing to write home about

xvary composite: 46/100 — below average

$1.35 fy2026 eps est

What they do

On sells running shoes, apparel, and accessories through stores, online, and partners.

On sells in more than 80 countries. That gives your shoes more places to land. CloudTec and LightSpray are the names on the box, and the brand still gets to charge for them.

consumer mid-cap footwear premium-brand international

How they make money

$3.7B annual revenue

Americas

$1.93B

+30.0%

Europe, Middle East and Africa

$0.75B

+30.0%

Asia-Pacific

$0.33B

+30.0%

Other and unallocated

$0.00B

+0.0%

The products that matter

performance footwear

Footwear

core of a $3.7B brand

this is still the center of gravity, even if this snapshot does not break out footwear revenue separately. At a $14B market cap, the shoe franchise has to keep carrying the story.

brand anchor

sportswear expansion

Apparel

part of the $7B fy2028 ambition

apparel matters because a running shoe company becomes a bigger lifestyle brand only if customers buy more than shoes. The path from $3.7B today to $7B by fy2028 likely runs through broader wardrobe share.

growth leg

accessories and ecosystem

Accessories

supports premium pricing

this is the supporting cast, not the headline act. But when your net margin is 9.7%, every higher-margin add-on helps justify why the market is still paying 70.0x trailing earnings.

margin helper

Key numbers

$1.35

fy2026 eps est

$7B

fy2028 rev est

70.0x

trailing p/e

n/a

dividend yield

Financial health

B+

strength

balance sheet grade B+ — solid but not elite
risk rank 3 — safer than 50% of stocks
price stability 15 / 100
net profit margin 9.7% — keeps 10 cents of every dollar in revenue
return on equity 16% — $0.16 profit for every $1 investors have put in

B+ — functional but not a standout on the balance sheet.

Total return vs. market

Return history isn't available for ONON right now.

same standard. no invented return math.

source: institutional data · return history unavailable

What just happened

beat estimates

On beat by $0.04 a share, even with the stock still priced at 70.0x trailing profit.

Wall Street had $0.21 and the company posted $0.25. The provided feed did not include clean quarterly revenue or gross margin, so the beat is the clearest read.

$3.01B

revenue

$0.25

eps

19.05%

surprise

the number that mattered

The $0.04 beat mattered because a 70.0x stock does not get much forgiveness when earnings wobble.

on holding ag delivered record sales in 2025.

surging demand for its popular swiss-designed shoes enabled the company to generate higher sales in the first three quarters of 2025 than it did in all of 2024.
when full-year results are released in early march, we anticipate the top line likely exceeded $3.7 billion, representing annual improvement in excess of 40%.

despite this, our model suggests that earnings pulled back in 2025, owing in part to a significant ramp up in growth-related spending and sizable foreign exchange-related losses incurred during the second quarter.
we see a swift bottom-line recovery in 2026.

with on holding fully entrenched in growth mode, it is likely that it will continue to allocate substantial resources towards brand-building, global expansion, and innovation initiatives this year.
on a positive note, benefits from its investment strategy should continue to produce tangible results on the top line, where we are currently targeting growth of 23%.

needless to say, the absence of last year’s aforementioned foreign exchange-related losses should also be highly supportive of the full-year earnings comparison in 2026.
all eyes are on new product launches.

on is slated to debut its new cloudrunner 3 and cloudmonster 3 models during the first quarter of 2026. in addition, the cloudrunner max is expected to launch in the second half of the year, which is said to feature significant advancements in the company’s proprietary foam technology.

source: company earnings report, 2026

What could go wrong

the #1 risk is growth slowing before a 70.0x earnings multiple cools off.

∘

med

premium multiple, normal margins

ONON trades at 70.0x trailing earnings while net margin sits at 9.7% and operating margin at 15.0%.

If growth slips even a little, the stock can re-rate faster than the business changes.

∘

med

the market already punished one outlook reset

After the March 2026 sales outlook, the stock fell 8.4%.

That is your reminder that this name is priced for clean execution, not "good enough" execution.

∘

med

supply chain and data systems are now a live risk

The 2025 annual report explicitly flagged technology and data risks in supply chain operations.

For a global product company, operational friction can show up in delays, costs, and lower margins before it shows up in headlines.

∘

med

this stock does not trade like a utility

The 52-week range is $26–$64, and price stability is just 15 / 100.

You are taking business risk and sentiment risk at the same time.

The business is strong. The multiple is the fragile part.

source: institutional data · regulatory filings · risk analysis

Pay attention to

valuation

whether earnings start catching up to the multiple

70.0x trailing p/e is the whole story right now. If earnings accelerate, the stock can hold up. If not, the market will stop being patient.

ownership

institutional buying that is positive but barely

Three quarters of net buying looks nice on a chart. The latest count — 252 buyers versus 250 sellers — says conviction is present, not overwhelming.

next update

the next guidance reset matters more than the last headline

After an 8.4% drop tied to the 2026 sales outlook, the next management update needs to restore confidence, not just clear a low bar.

volatility

a 15 / 100 price stability score

This is what a premium growth stock looks like when sentiment does not cooperate. The business can be fine while the stock still swings hard.

Analyst rankings

short-term outlook

below average

outlook rank 4 — analysts see underperformance risk in the near term.

risk profile

average

risk rank 3 — typical risk profile — neither especially safe nor risky.

chart momentum

below average

momentum rank 4 — analysts see underperformance risk in the near term.

source: institutional data

Institutional activity

institutions have been net buying for 3 consecutive quarters — 252 buyers vs. 250 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.

source: institutional data · 1q2025-3q2025

source: institutional data

Price targets

3-5 year target range

$41 $112

$49 current price

$77 target midpoint · +57% from current · 3-5yr high: $75 (+55% · 11% ann'l return)

source: institutional data · analyst targets

The deep dive

ONON

xvary deep dive

onon

the full analysis is in the works.

what you'll get

dcf valuation model

bull / base / bear scenarios

competitive moat breakdown

quarterly earnings tracker

operating model projections

risk matrix with kill criteria

original price target + conviction

updated with every earnings

free · no spam · you'll be first to read it

onon

Get this snapshot in your inbox

Want the deeper analysis?