On Holding AG (NYSE:ONON) Maintains "Buy" Rating Amidst Revenue Guidance Concerns

Font: Financial Modeling Prep  • Mar 03, 2026

• On Holding AG (NYSE:ONON) surpasses Q4 earnings and sales forecasts but provides lower-than-expected revenue guidance for fiscal year 2026.
• The company reports a record fourth-quarter gross profit margin of 63.9% and expects a gross profit margin of at least 63% for 2026.
• Despite a 6.07% drop in stock price, On Holding's strong operational performance and market resilience are highlighted by its consistent outperformance of consensus revenue estimates.

On Holding AG (NYSE:ONON) is a prominent player in the athletic footwear and apparel industry, known for its innovative running shoes. The company has gained a strong market presence, competing with giants like Nike and Adidas. On March 3, 2026, BTIG reiterated its "Buy" rating for On Holding, maintaining its status as a large-cap top pick, with the stock priced at $43.87.

Despite the positive rating from BTIG, On Holding's stock experienced a decline following its fourth-quarter earnings report. The company reported adjusted earnings per share of $0.31, surpassing the 18-cent estimate, and net sales of $930.66 million, exceeding the $915.20 million forecast. However, the future revenue guidance fell short of expectations, causing investor concern.

On Holding projected its fiscal year 2026 net sales to exceed $4.30 billion, which was below the $4.59 billion anticipated by analysts. This discrepancy in revenue guidance led to a decrease in the stock price, which is now at $43.92, reflecting a 6.07% drop. The stock's trading range for the day was between $40.10 and $44.05.

Despite the disappointing revenue outlook, On Holding achieved a record fourth-quarter gross profit margin of 63.9%, an increase of 180 basis points from the previous year. The company expects a gross profit margin of at least 63% and an adjusted EBITDA margin between 18.5% and 19% for 2026. These figures highlight the company's strong operational performance.

Over the past year, ONON's stock has fluctuated between a high of $61.29 and a low of $34.38. The company has a market capitalization of approximately $14.5 billion, with a trading volume of 18.78 million shares. Despite the recent dip, On Holding's consistent outperformance of consensus revenue estimates over the past four quarters demonstrates its resilience in the competitive market.