On Holding beats Q4 estimates but issues $4.3B 2026 outlook, unveils Lightspray robots
On Holding reported Q4 adjusted EPS of $0.31 and $930.7 million in sales, topping estimates but shares fell 7.5% after guiding 2026 revenue at $4.304 billion versus $4.590 billion consensus. Its premium strategy uses Lightspray robots to make shoe uppers in three minutes while slashing CO2 emissions up to 75%.
1. Q4 Financial Results
On Holding delivered adjusted EPS of $0.31 versus an $0.18 estimate and generated $930.7 million in sales, slightly above the $915.2 million consensus. Despite the beat, the stock slid 7.5% on concerns over the company's cautious stance for 2026.
2. 2026 Revenue Guidance
The company projected 2026 revenue of $4.304 billion, falling short of the $4.590 billion analyst consensus and signaling a tempered growth outlook. Management described the guidance as conservative, prioritizing high-quality, premium expansion over aggressive top-line targets.
3. Premium Strategy and Tariff Impact
Leadership emphasized a premium-focused approach driven by innovation, brand elevation and pricing power across regions including doubled Asia-Pacific awareness. Potential tariff refunds or reductions from current levels could further boost gross profit margins beyond existing guidance.
4. Lightspray Robotics Technology
On Holding’s Lightspray process uses robots to spray a shoe’s upper in just three minutes, eliminating layers and reducing CO2 emissions by up to 75%. The firm has opened a major factory in Korea with plans to deploy the technology in U.S. and European facilities to scale premium production.