On Holding (NYSE:ONON) has followed up its Q1 2026 update with a recent run of quarterly numbers that show revenue moving from CHF 606.6 million in Q4 2024 to CHF 743.8 million in Q4 2025, while Basic EPS over that same span shifted from CHF 0.28 to CHF 0.21 alongside net income of CHF 69.1 million. The company has seen revenue track between CHF 726.6 million and CHF 794.4 million across the four quarters of 2025, with Basic EPS ranging from a loss of CHF 0.12 in Q2 2025 to CHF 0.36 in Q3 2025. This sets up a story where investors are weighing growth in the top line against pressure on margins and profitability quality.

See our full analysis for On Holding.

With the headline figures on the table, the next step is to set these results against the dominant market narratives to see which stories still hold up and which start to look out of sync with the data.

Margins Slip From 10.5% To 6.8%

• On the trailing twelve month view, net profit margin sits at 6.8% compared with 10.5% a year earlier, alongside CHF 3.0b of revenue and CHF 203.7 million of net income.
• Bears argue that a lower margin undercuts the quality of growth, yet the data give a mixed picture:
  • The loss of CHF 40.9 million in Q2 2025 contrasts with profits in the other three quarters of 2025, which range from CHF 56.7 million to CHF 118.9 million, so profitability has not been consistently weak.
  • At the same time, trailing Basic EPS of CHF 0.6182 is below the prior year trailing figure of CHF 0.7501, which supports the cautious view that recent profit per share is not matching the earlier level even as revenue has reached CHF 3.0b.

Bears point to this margin reset as a sign that high growth may not automatically translate into stronger earnings over time, especially if cost pressures continue to bite into profitability.

High P/E Meets Growth Hopes

• The stock trades on a trailing P/E of 42.9x versus a peer average of 23.4x and a US Luxury industry average of 20.7x, while a DCF fair value of US$43.38 sits above the current share price of US$33.83.
• Bullish investors see this rich multiple as backed by growth expectations, and the figures partially support that stance:
  • Revenue is forecast to grow about 15.7% per year and earnings about 18.2% per year, which is higher than the market growth rates provided and lines up with the idea of a faster growing business.
  • However, the trailing net profit margin of 6.8% is lower than the prior 10.5%, so the higher P/E and the DCF fair value gap rely on future earnings improving from a profitability base that is currently lower than last year.

Bulls are effectively paying up on the P/E today while pointing to the DCF fair value and higher forecast growth as reasons the current share price of US$33.83 could still sit below what future earnings might justify.

🐂 On Holding Bull Case

Revenue Near CHF 3.0b With Volatile EPS

• Over the last four reported quarters, revenue totals CHF 3.0b on a trailing basis, with quarterly revenue between CHF 726.6 million and CHF 794.4 million, while quarterly Basic EPS has swung from a loss of CHF 0.12 in Q2 2025 to a gain of CHF 0.36 in Q3 2025.
• Skeptics highlight these EPS swings as a risk for the more cautious narrative, and the numbers give them some backing:
  • The Q2 2025 loss of CHF 40.9 million and negative Basic EPS sit between three profitable quarters, showing that earnings can move sharply even when revenue stays within a relatively tight CHF 726.6 million to CHF 794.4 million band.
  • Analysts still expect earnings to grow about 18.2% per year from the current trailing net income base of CHF 203.7 million, so the bearish view focuses on whether that growth path can stay on track if similar earnings volatility reappears.

For more cautious investors, the combination of steady CHF 3.0b level revenue and choppy EPS is exactly why the bearish side questions how smooth the profit path will be from here.

🐻 On Holding Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for On Holding on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Plenty of views have been laid out, but the real question is what you make of the trade off between risks and rewards here. Take a closer look at the data, pressure test the bullish and bearish points against your own expectations, and then weigh the 2 key rewards and 1 important warning sign in 2 key rewards and 1 important warning sign

See What Else Is Out There

On Holding's mix of volatile EPS, a reset in net profit margins, and a relatively high P/E ratio leaves some investors questioning the overall risk profile.

If you want stocks where earnings and balance sheet strength work together more cleanly, take a few minutes to check out 69 resilient stocks with low risk scores to compare alternatives with lower overall risk.

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.