• On Holding AG recently reported past first-quarter 2026 results, with net sales rising to CHF 831.9 million and net income reaching CHF 103.3 million, while reaffirming full-year guidance for at least 23% constant-currency net sales growth and lifting its profitability outlook.
• The earnings release highlighted especially strong expansion in Asia-Pacific and apparel, underlining how newer regions and categories are increasingly contributing to the company’s overall performance mix.
• With management raising its profitability outlook on the back of strong Asia-Pacific and apparel momentum, we’ll assess how this reshapes On’s investment narrative.

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On Holding Investment Narrative Recap

To own On Holding, you need to believe in its ability to grow as a premium global sportswear brand while turning that growth into durable profitability. The key short term catalyst remains execution in newer regions and categories, especially Asia Pacific and apparel. The latest quarter showed strong progress here, and management’s upgraded profitability outlook supports that story. The biggest current risk, rapid multi region and multi category expansion pressuring margins if demand slows, is unchanged by this news.

Among recent updates, the launch of the LightSpray Cloudmonster with LOEWE is especially relevant. It connects directly to one of On’s core catalysts: using new manufacturing technologies like LightSpray to improve supply chain efficiency and support premium pricing on innovative product franchises. If this technology scales beyond limited releases, it could reinforce the growth in Asia Pacific and apparel that underpins the near term catalyst around mix and margin improvement.

Yet against this upbeat backdrop, investors should still pay close attention to the risk that rapid expansion and premium pricing could collide with weaker demand and...

On Holding's narrative projects CHF5.3 billion revenue and CHF624.9 million earnings by 2029. This requires 20.4% yearly revenue growth and about a CHF421 million earnings increase from CHF203.7 million today.

Uncover how On Holding's forecasts yield a $56.41 fair value, a 42% upside to its current price.

Exploring Other Perspectives

Some analysts were far more optimistic before this quarter, projecting revenue of about CHF 5,500.0 million and earnings near CHF 725.2 million by 2028, so this strong update may either reinforce or challenge that richer growth story depending on how you view the added exposure to Asia Pacific and potential margin strain.

Explore 15 other fair value estimates on On Holding - why the stock might be worth over 2x more than the current price!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• 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.