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

ON (NYSE:ONON) released its earnings results on Tuesday. The company reported $0.65 earnings per share for the quarter, topping analysts’ consensus estimates of $0.47 by $0.18, FiscalAI reports. ON had a return on equity of 23.62% and a net margin of 12.41%. The business had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same period last year, the business earned $0.43 earnings per share. The firm’s revenue for the quarter was up 17.2% compared to the same quarter last year.

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 Stock Performance

Shares of NYSE:ONON opened at $33.75 on Thursday. The business’s fifty day moving average price is $31.93 and its two-hundred day moving average price is $36.35. ON has a fifty-two week low of $26.36 and a fifty-two week high of $51.08. The stock has a market capitalization of $21.54 billion, a price-to-earnings ratio of 20.58, a price-to-earnings-growth ratio of 0.69 and a beta of 2.05. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.83 and a quick ratio of 2.25.

Insider Buying and Selling at ON

In related news, insider Olivier Bernhard acquired 65,000 shares of the business’s stock in a transaction on Friday, August 14th. The stock was bought at an average cost of $30.67 per share, with a total value of $1,993,550.00. Following the completion of the acquisition, the insider owned 5,228,184 shares in the company, valued at $160,348,403.28. The trade was a 1.26% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Caspar Coppetti acquired 65,000 shares of the business’s stock in a transaction on Friday, August 14th. The shares were bought at an average cost of $30.67 per share, with a total value of $1,993,550.00. Following the completion of the acquisition, the chief executive officer owned 2,440,855 shares of the company’s stock, valued at approximately $74,861,022.85. This trade represents a 2.74% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 68.57% of the company’s stock.

Wall Street Analyst Weigh In

ONON has been the subject of a number of research reports. The Goldman Sachs Group reiterated a “buy” rating on shares of ON in a research report on Tuesday, September 22nd. UBS Group cut their target price on ON from $73.00 to $65.00 and set a “buy” rating for the company in a research note on Wednesday. Zacks Research upgraded ON from a “strong sell” rating to a “hold” rating in a research note on Monday, October 12th. Wells Fargo & Company assumed coverage on ON in a research report on Wednesday, November 4th. They issued an “overweight” rating and a $48.00 target price for the company. Finally, Morgan Stanley lifted their price target on shares of ON from $39.00 to $43.00 and gave the stock an “overweight” rating in a research note on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $43.82.

Trending Headlines about ON

Investors following ONON have been watching these headlines:

• Positive Sentiment: On reported Q3 revenue growth of 17.2%, with direct-to-consumer sales up 25%, and raised its comparable full-year gross-margin outlook to about 66%. Management also expects Q4 growth to accelerate. Company outlook article
• Neutral Sentiment: UBS lowered its price target to $65 but kept a Buy rating, citing multiyear growth potential alongside promotional risks. The mixed message reflects continued confidence in the business, but caution about near-term execution. UBS outlook article
• Negative Sentiment: Investors have questioned the durability of Q3 margins because results included a sizable U.S. tariff refund. On also left its full-year sales-growth outlook unchanged, while inventory growth, promotional pressure and product-launch execution remain concerns. Quarterly results and investor concerns

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.