On Holding Q4 Net Sales +22.6%, Shares Slide 12.9% on Outlook
On Holding AG's Q4 net sales rose 22.6% year-over-year to CHF743.8m, with adjusted EBITDA up 31.8% to CHF131m but EPS falling to CHF0.21. Shares slid 12.9% to $40.71 after management set 2026 revenue growth guidance of at least 23% on constant currency and projected an 18.5%-19% EBITDA margin.
1. Strong Q4 Financial Performance
On Holding AG reported net sales of CHF743.8 million in Q4, up 22.6% year-over-year, with direct-to-consumer sales rising 21.7% to CHF360.6 million and wholesale sales up 23.4% to CHF383.2 million. Adjusted EBITDA increased 31.8% to CHF131 million, while basic EPS declined to CHF0.21 from CHF0.28.
2. Investor Reaction and Share Decline
Despite exceeding top- and bottom-line expectations, On Holding shares fell 12.9% to $40.71 as investors reacted to revenues missing initial forecasts by 6% and expressed caution over the company’s outlook. Analysts highlighted strong demand signals across all regions but noted that conservative guidance weighed on sentiment.
3. 2026 Outlook and Guidance
Management set 2026 net sales growth of at least 23% on a constant currency basis, targeting a gross profit margin of at least 63.0% and an adjusted EBITDA margin between 18.5% and 19.0%. The plan reflects disciplined execution of strategic priorities and an expectation of continued profitability improvements.
4. Regional Conflict and Supply Chain Concerns
Escalating military activity in the Middle East has raised the risk of prolonged supply chain disruptions via the Strait of Hormuz, potentially driving up shipping premiums and rerouting delays. Persistently high crude oil prices and logistical challenges could exert additional cost pressure on the company’s operations.