• In July 2026, Infinium announced its supply relationship with Borouge International and On Holding to support the commercial launch of On’s CleanCloud technology, using eNaphtha from waste CO2 and renewable hydrogen to produce EVA midsoles for the Cloud X 5 shoe via existing petrochemical infrastructure.
• This move brings captured-carbon materials into large-scale, everyday sportswear production years earlier than On originally planned, highlighting a practical pathway to lower-fossil feedstocks without sacrificing performance.
• We’ll now explore how scaling CleanCloud to over a million pairs using captured-carbon EVA could influence On’s longer-term investment narrative.

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On Holding Investment Narrative Recap

To own On, I think you need to believe it can keep growing a premium global sportswear brand while protecting margins through product innovation and a higher mix of direct-to-consumer sales. The CleanCloud scale-up with Infinium looks more like a medium term brand and differentiation driver than a short term earnings catalyst, while the bigger near term risk still sits with heavy investment and pricing power potentially colliding with weaker consumer demand.

Among recent developments, the Q1 2026 results and reiterated 2026 guidance for at least 23% constant currency net sales growth matter most here, because they frame how quickly initiatives like CleanCloud must contribute without derailing profitability. The new CFO and expanded leadership bench may help execution around supply chain, DTC and sustainability projects, but they also raise the bar on proving that aggressive expansion and innovation spending will convert into durable earnings growth.

Yet behind the excitement around CleanCloud, investors should be aware that...

On Holding’s narrative projects CHF5.4 billion revenue and CHF661.8 million earnings by 2029. This requires 19.9% yearly revenue growth and an earnings increase of about CHF411.5 million from CHF250.3 million today.

Uncover how On Holding's forecasts yield a $52.49 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Before this CleanCloud news, the most optimistic analysts were already assuming revenue could reach about CHF5.9 billion and earnings around CHF792.1 million by 2029, which is far more bullish than the baseline and leans heavily on premium brand strength and margin expansion that could be tested if growth in Asia Pacific or apparel slows.

Explore 17 other fair value estimates on On Holding - why the stock might be worth over 2x more than the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your On Holding research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free On Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate On Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.