On Holding AG reported record first-quarter 2026 results on May 12, featuring increased net sales and net income [1], [2].
The results demonstrate the company's ability to scale its global footprint while maintaining high profit margins. This growth is driven by a strategic shift toward direct-to-consumer sales and expanding demand for its performance footwear.
Net sales for the first quarter reached CHF 831.9 million [1]. This represents a 14.5% increase compared to the previous year [1]. The company also reported a net income of CHF 103.3 million for the period [2].
Following the announcement, the company's stock rose approximately 6.8% [2]. Market confidence was further signaled on May 15, when disclosures revealed that the company's founder and executives purchased additional shares [3].
On Holding AG has set an ambitious target for the full fiscal year 2026, aiming for constant-currency net sales growth of at least 23% [2]. The company also raised its full-year gross-margin outlook [2]. Current gross margins stand at 63% [4].
A key component of the company's financial strategy is its distribution model. Direct-to-consumer sales now account for approximately 50% of total revenue [4]. This shift allows the company to capture more value per unit sold by reducing reliance on third-party retailers.
Despite the record numbers, some market analysts have expressed mixed views. While the company raised its margin outlook, some reports suggest that previous stock weakness was tied to softer guidance for the remainder of the 2026 fiscal year [4].
“Net sales for the first quarter reached CHF 831.9 million”
On Holding AG is transitioning from a niche performance brand to a major global competitor. By aggressively growing its direct-to-consumer channel and maintaining a 63% gross margin, the company is insulating itself from wholesale volatility. However, the discrepancy between record Q1 results and analyst concerns regarding full-year guidance suggests the market is closely watching whether this growth rate is sustainable throughout 2026.
