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

ON (NYSE:ONON) announced its quarterly earnings results on Tuesday. The company reported $0.65 earnings per share 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 analysts’ expectations of $1.11 billion. ON had a return on equity of 22.92% and a net margin of 12.09%. ON’s quarterly revenue was up 17.2% on a year-over-year basis. During the same period last year, the business 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 Trading Down 0.7%

NYSE:ONON traded down $0.25 on Wednesday, reaching $34.45. 5,724,241 shares of the company’s stock were exchanged, compared to its average volume of 7,396,000. 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 firm has a market capitalization of $21.98 billion, a price-to-earnings ratio of 23.44, a price-to-earnings-growth ratio of 0.74 and a beta of 2.05. The business has a fifty day moving average of $31.79 and a 200-day moving average of $36.41. ON has a 52-week low of $26.36 and a 52-week high of $51.08.

Analyst Ratings Changes

Several equities analysts have recently weighed in on ONON shares. William Blair downgraded shares of ON from an “outperform” rating to a “market perform” rating in a research note on Tuesday, August 11th. Bank of America dropped their price objective on shares of ON from $46.00 to $43.00 and set a “buy” rating for the company in a research note on Thursday, September 17th. JPMorgan Chase & Co. increased their price objective on shares of ON from $44.00 to $46.00 and gave the company an “overweight” rating in a report on Wednesday. UBS Group reissued a “buy” rating on shares of ON in a research note on Wednesday, September 23rd. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of ON in a research note on Thursday, September 24th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $44.11.

Insider Activity at ON

In other ON news, CEO Caspar Coppetti bought 65,000 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were purchased at an average cost of $30.67 per share, with a total value of $1,993,550.00. Following the purchase, the chief executive officer directly owned 2,440,855 shares in the company, valued at approximately $74,861,022.85. This represents a 2.74% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Olivier Bernhard bought 65,000 shares of ON stock in a transaction on Friday, August 14th. The shares were acquired at an average price of $30.67 per share, for a total transaction 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. This represents a 1.26% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

More ON News

Here’s some of the latest news about ONON:

• Positive Sentiment: Several analysts raised price targets after the results: JPMorgan lifted its target to $46, Morgan Stanley to $43, and KeyCorp to $42; all three maintain Overweight ratings. Analyst forecast revisions
• 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

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.