On Holding Q1 2026 Earnings Beat

Swiss sportswear company On Holding beat Wall Street’s first-quarter expectations on both revenue and earnings, CNBC reported Tuesday, as the brand raised its full-year profitability guidance and posted surging sales in China. On Holding Q1 earnings came in at 37 Swiss cents per adjusted share, well ahead of the 27-cent consensus. Net sales reached 831.9 million Swiss francs, topping analyst forecasts of 823 million francs.

Revenue Channels Deliver a Mixed Picture

Total sales climbed 14.5% year-over-year from 727 million francs. Direct-to-consumer revenue grew 16.4% to 322.3 million francs, narrowly missing estimates of 326 million francs. The wholesale channel, which carries lower margins, rose 13.3% to 509.6 million francs, exceeding expectations of 499 million francs. Net income more than doubled to 103.3 million francs from 56.7 million francs in the same period a year ago.

Guidance Raised Despite Tariff Uncertainty

On lifted its gross profit margin forecast for 2026 to at least 64.5%, up from an earlier target of 63%. Its adjusted EBITDA margin guidance now sits in a 19.5%-to-20% range, compared with a prior 18.5%-to-19% band. The company kept a 20% Vietnam import tariff assumption baked into its outlook. Co-CEO Caspar Coppetti told CNBC the tariff situation remains unpredictable despite a recent U.S. Supreme Court ruling that suspended the duty. On has applied for a refund but is not counting on one. Even full tariff relief would be “immaterial” to performance, Coppetti said.

Also Read: Fed Holds Rates Steady as Tariff Uncertainty Clouds Outlook

On’s European Identity Resonates in China

China has become a standout growth engine for the brand. Sales there are expanding at a high-double-digit rate, and apparel now accounts for roughly 30% of Chinese revenue, compared with about 6% across the rest of the business. Coppetti told CNBC that Chinese shoppers increasingly gravitate toward premium or distinctive brands, and On’s Swiss heritage plays well in that environment. That trajectory stands in sharp contrast to rival Nike, which has faced a prolonged slump in China as local competitors win over domestic consumers.

Background: Growth Slowdown Weighs on Stock

Despite consistent beats, On’s shares have fallen roughly 27% year-to-date. Some analysts question whether the brand can scale into a true global footwear heavyweight with mass appeal beyond its affluent core audience. Leadership is also in transition. Just before the quarter closed, the company announced co-founders David Allemann and Coppetti would take over as co-CEOs, replacing outgoing chief Martin Hoffmann. The brand is investing fresh profit gains into apparel and newer sports categories like tennis to sustain momentum.

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