ON (NYSE:ONON) Posts Quarterly Earnings Results, Beats Estimates By $0.18 EPS

ON (NYSE:ONON) posted its earnings results on Tuesday. The company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.47 by $0.18, FiscalAI reports. The company had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.11 billion. ON had a return on equity of 22.92% and a net margin of 12.09%. The business’s revenue was up 17.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.43 earnings per share.

Here are the key takeaways from ON’s conference call:

• On reported record Q3 sales of CHF 931.4 million, up 17.8% in constant currency, with underlying gross margin at a record 66.9% and adjusted EBITDA margin at a record 21.9% excluding one-off items.
• The company reiterated its full-year sales-growth outlook in the low 20s at constant currency and raised its gross-margin outlook, excluding tariff refunds, to around 66%; it expects Q4 growth to accelerate, led primarily by DTC. Q3 DTC growth was 24.8%, though management said it came in slightly below its internal target.
• New products are showing strong early demand: Cloudsurfer 3 sold through at more than four times the launch-week rate of its predecessor, while LightSpray demand exceeded available supply. On plans to expand LightSpray production, including a Vietnam facility, and roll its new foams across more running franchises.
• Investment in technology, marketing, and new sports is increasing costs: SG&A excluding share-based compensation rose 270 basis points as a share of sales, and management said material SG&A leverage is expected to build from 2027. The company maintained its adjusted EBITDA margin outlook of 19.5%–20%, excluding tariff refunds.

ON Price Performance

ON stock traded down $0.26 during midday trading on Wednesday, hitting $34.44. The company’s stock had a trading volume of 4,839,695 shares, compared to its average volume of 7,391,102. The company has a quick ratio of 2.25, a current ratio of 2.83 and a debt-to-equity ratio of 0.25. The stock’s 50-day moving average price is $31.79 and its 200-day moving average price is $36.41. ON has a 12 month low of $26.36 and a 12 month high of $51.08. The company has a market capitalization of $21.98 billion, a PE ratio of 23.40, a price-to-earnings-growth ratio of 0.74 and a beta of 2.05.

Insider Transactions at ON

In other ON news, CEO Caspar Coppetti acquired 65,000 shares of ON stock in a transaction dated Friday, August 14th. The stock was bought at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the transaction, the chief executive officer owned 2,440,855 shares in the company, valued at approximately $74,861,022.85. This trade represents a 2.74% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Olivier Bernhard acquired 65,000 shares of ON stock in a transaction dated Friday, August 14th. The shares were acquired at an average price of $30.67 per share, with a total value of $1,993,550.00. Following the transaction, the insider owned 5,228,184 shares in the company, valued at approximately $160,348,403.28. This represents a 1.26% increase in their position. The disclosure for this purchase is available in the SEC filing.

Analysts Set New Price Targets

Several brokerages recently issued reports on ONON. UBS Group reissued a “buy” rating on shares of ON in a report on Wednesday, September 23rd. Stifel Nicolaus lowered their price objective on ON from $60.00 to $41.00 and set a “buy” rating for the company in a research note on Wednesday, August 12th. Morgan Stanley increased their target price on ON from $39.00 to $43.00 and gave the stock an “overweight” rating in a research report on Wednesday. Capital One Financial set a $28.00 target price on ON in a research note on Tuesday, September 8th. Finally, William Blair downgraded shares of ON from an “outperform” rating to a “market perform” rating in a report on Tuesday, August 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $44.11.

Recent ON Headlines

These are some of the ONON headlines that stood out recently:

• Positive Sentiment: On reported Q3 revenue growth of 17.2%, stronger-than-expected EPS, and 25% growth in direct-to-consumer sales. It also raised its 2026 comparable gross-margin outlook to about 66%, with adjusted EBITDA margin guidance of 19.5%–20%, and expects Q4 growth to accelerate. On raises 2026 gross margin outlook
• Neutral Sentiment: UBS sees a multiyear growth opportunity but cautions that promotional activity could pose a risk. UBS on growth and promotional risks
• Negative Sentiment: The main concern is that Q3 profitability benefited from a CHF 52.6 million U.S. tariff refund, which may not recur. On also left its full-year sales-growth outlook unchanged in the low-20% range, prompting questions about underlying momentum; inventory growth and launch risks add to caution. Barclays trimmed its target to $42 from $44, while Goldman Sachs lowered its target to $41. Analysis of tariff benefit and unchanged outlook

About ON

On Holding AG, which trades on the New York Stock Exchange under the symbol ONON, is a Swiss sportswear company that develops and sells performance footwear, apparel and accessories. Its products serve runners and other athletes, as well as consumers seeking athletic-inspired everyday wear. The company is known for its running shoes, which feature its CloudTec cushioning technology. On also offers apparel and equipment for activities including running, training and outdoor sports, selling through wholesale partners and its own retail and online channels.