On Holding 1Q Results and Profitability Update

ON Holding delivered a strong 1Q26 beat with 26.4% cFX sales growth and a 19% adj. EBITDA surprise, driven by DTC momentum and gross margin expansion. Goldman Sachs maintains a Buy rating, lowering the price target slightly to $50 while raising FY26/27 profitability estimates.

Key Takeaways

• 1.On Holding reported a significant 1Q26 adjusted EBITDA beat of 19%, driven by robust constant currency growth and a 430bps expansion in gross margins.
• 2.Gross margins are expanding due to rising price mix and the shift toward the Direct-to-Consumer (DTC) channel, providing a multi-year upside despite tariff and commodity cost headwinds.
• 3.The company updated its FY26 guidance, expecting net sales growth of at least 23% on a constant currency basis and a gross margin of at least 64.5%.

Table of Contents

• News
• Implications
• Key Data
• GS Forecast
• Ratios & Valuation
• Growth & Margins
• Price Performance
• Balance Sheet
• Income Statement
• Financials
• Cashflow and valuation
• Key risks
• Disclosure Appendix

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