• In the past few days, On Holding was upgraded to a Zacks Rank #2 (Buy) as analysts raised earnings estimates following strong recent results, including Q1 2026 revenue growth and margin expansion supported by new technologies like LightSpray and SURREAL Superfoam.
• Beyond its running roots, the company’s push into a higher-end lifestyle positioning, while preserving premium pricing and margins, is emerging as a central part of how analysts assess its earnings potential.
• Now we’ll examine how this earnings-focused upgrade, underpinned by premium brand and margin strength, influences On Holding’s existing investment narrative.

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On Holding Investment Narrative Recap

To own On Holding, you need to believe its shift from performance running into a premium lifestyle brand can continue to support high margins and justify a richer valuation. The Zacks Rank upgrade, driven by higher earnings estimates after Q1 2026, reinforces the near term earnings catalyst but does not remove the main risk that premium pricing and heavy investment could eventually pressure margins if consumer appetite or demand slows.

The most relevant update here is Q1 2026’s 26% year over year revenue growth, 64% gross margin, and 14.1% operating margin, supported by technologies like LightSpray and SURREAL Superfoam. These results are a key backdrop to the earnings optimism behind the Zacks upgrade, because they highlight how innovation and premium pricing currently support both revenue growth and margin expansion.

Yet, while the brand’s premium positioning looks like a strength today, investors should still be aware that...

On Holding's narrative projects CHF5.4 billion revenue and CHF661.8 million earnings by 2029.

Uncover how On Holding's forecasts yield a $52.49 fair value, a 42% upside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts were assuming earnings of about CHF 723.0 million on CHF 5.4 billion revenue by 2029, so compared with the recent upgrade and strong Q1 margins, their view reflects a much more cautious stance on how far On’s growth and profitability can stretch.

Explore 14 other fair value estimates on On Holding - why the stock might be worth over 2x more than the current price!

Reach Your Own Conclusion

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.