The Bull Case For On Holding (ONON) Could Change Following Upbeat Results and Raised Sales Guidance

• On Holding AG reported strong third-quarter results with sales rising to CHF 794.4 million and net income reaching CHF 118.9 million, and subsequently raised its full-year 2025 net sales guidance to CHF 2.98 billion, up from previous forecasts.
• The company also filed a universal shelf registration, increasing flexibility to potentially issue new shares, debt, warrants, rights, and other securities in the future.
• We’ll explore how On Holding’s raised full-year sales outlook following strong quarterly earnings affects its investment narrative.

AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

On Holding Investment Narrative Recap

To be a shareholder of On Holding, you have to believe in its ability to sustain premium global demand, successfully expand across regions and categories, and convert revenue growth into long-term profitability. The latest earnings beat and raised sales guidance reinforce the company’s growth catalyst, but do not materially change the immediate risk: whether persistent premium pricing and marketing investments can maintain margins without alienating customers or inviting fierce competition.

Of the recent developments, the Q3 earnings report is especially relevant. On Holding saw third-quarter sales climb to CHF 794.4 million, with net income sharply higher year-over-year, providing the confidence behind its upwardly revised full-year guidance. This ongoing momentum is central to the short-term narrative but relies heavily on the company’s ability to maintain its pricing power and operational leverage.

By contrast, the real question many investors should be aware of is just how sustainable On Holding’s premium pricing strategy remains if...

Read the full narrative on On Holding (it's free!)

On Holding's narrative projects CHF 5.0 billion in revenue and CHF 561.2 million in earnings by 2028. This requires 22.9% yearly revenue growth and a CHF 425.3 million earnings increase from the current CHF 135.9 million.

Uncover how On Holding's forecasts yield a $62.29 fair value, a 44% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates for On Holding range from CHF 52.65 to CHF 91.11 across 16 individual perspectives, highlighting wide disagreement. With ongoing reliance on premium pricing as a catalyst for growth, it’s important to recognize how differently investors view On Holding’s prospects, explore these divergent views for a fuller picture.

Explore 16 other fair value estimates on On Holding - why the stock might be worth just $52.65!

Build Your Own On Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your On Holding research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free On Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate On Holding's overall financial health at a glance.

Searching For A Fresh Perspective?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• We've found 15 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Find companies with promising cash flow potential yet trading below their fair value.
• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 37 best rare earth metal stocks of the very few that mine this essential strategic resource.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com