TLDR
- ONON stock jumped more than 12% after On Holding hosted its Investor Day on Tuesday
- The company announced a $1 billion share repurchase program, its first ever
- On targets net sales of at least 5.6 billion Swiss francs by 2029
- Gross profit margin target of at least 65% through 2029, well above Nike’s 43%
- On is expanding into football and golf, with Kylian Mbappé named as global soccer ambassador
On Holding stock was trading up more than 12% on Tuesday after the Swiss sportswear company held its Investor Day, laying out a detailed financial roadmap through 2029 and announcing its first-ever share buyback program worth $1 billion.
ONON opened premarket up around 5.86% at $28.92 before extending gains to over 12% as the session progressed, hitting a price of $30.63. Volume hit 20.7 million, well above the average of 7.1 million.
The stock has shed roughly a third of its value this year, so Tuesday’s move has investors asking whether this is the turning point.
On expects net sales to reach at least 5.6 billion Swiss francs by 2029, which works out to close to $7 billion at current exchange rates. The company is targeting a high-teens constant-currency sales CAGR from 2026 through 2029.
For the full year 2026, On reiterated guidance for constant-currency net sales growth in the low-20% range.
Margin Targets Stand Out
One of the clearest signals from Investor Day was On’s commitment to its profit margins. The company is targeting a gross profit margin of at least 65% through 2029, along with an adjusted EBITDA margin of at least 22% by that year.
That adjusted EBITDA CAGR is expected to top 20% from 2026 to 2029.
To put the margin target in context, Nike’s most recent annual gross profit margin sits at around 43%. On is operating in a different tier.
Co-CEO David Allemann said the company’s Premium Playbook connects product development at its Zurich labs with consumers who see sportswear as part of their lifestyle.
Co-CEO Caspar Coppetti said On is on track to exceed the targets it laid out at its 2023 Investor Day.
$1 Billion Buyback and New Markets
On’s board authorised the company’s first share repurchase program, allowing it to buy back up to $1 billion of Class A ordinary shares through the end of 2029.
For Q3 2026, On is guiding for constant-currency sales growth of around 17%.
Beyond running and tennis, On is moving into football and golf. The company recently named French soccer star Kylian Mbappé as its global ambassador for its soccer push.
On currently holds a market cap of around $9 billion, with a 52-week range of $26.36 to $51.08.
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