Bailey Pemberton
4 min read
On Holding just gave shareholders a reality check. The stock closed down 7.5% at $34.73 after its Q3 2026 report, even as the Swiss sportswear group delivered CHF 931.4m in net sales and basic earnings per share of CHF 0.49. Traders focused on the short term and sold first. Long term holders are looking at a business with trailing twelve month basic earnings per share of CHF 1.32 and a P/E multiple that still prices On as a premium growth story.
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Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025): CHF 931.4m vs. CHF 794.4m (up about 17% year on year)
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Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): CHF 162.8m vs. CHF 118.9m (up about 37% year on year)
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Basic EPS (Q3 2026 vs. Q3 2025): CHF 0.49 vs. CHF 0.36 (up about 35% year on year)
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Underlying Gross Margin (Q3 2026 vs. Q3 2025): 66.9% compared with a prior-year level implied to be about 320 bps lower (record like-for-like margin expansion)
On Holding hit record margins while rolling out new superfoams. Ask Charlie what makes On Holding’s new superfoams so important.
On Holding’s Premium Playbook Put To The Test
The bullish analyst narrative on Simply Wall St centers on On Holding turning premium pricing and channel mix into sustained earnings power, rather than delivering just one strong quarter.
“The main thing that has to go right is that On Holding maintains full price discipline in a promotional market while continuing to shift more sales into higher margin DTC and apparel without relying on discounting.”
The latest quarter moves that idea from theory to evidence. Underlying gross margin reached a record 66.9%, while adjusted EBITDA margin was about 21.9%. Both were achieved as DTC rose to 42.2% of sales and apparel grew 38% in constant currency. That combination points to premium pricing and channel mix working together rather than pulling against each other, which is a key milestone for this thesis.
Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there.
Bearish Inventory Fears Meet Premium Execution
The bearish analyst Narrative on Simply Wall St argues that On Holding’s premium model will crack once promotions bite.
“Dependence on disciplined full price execution leaves On Holding exposed if the highly promotional environment in the Americas persists. Any shift toward clearing stock through markdowns would undermine the premium model and weigh on both gross margin and net margins.”
