On Holding Posts Q4 Revenue Beat; Stock Under Pressure Due To FX Noise, Say Analysts

Shares of On Holding Ltd (NYSE:ONON) tanked in early trading on Wednesday, despite the company reporting upbeat fourth-quarter earnings.

Here are the key analyst insights:

• Guggenheim Securities analyst Simeon Siegel reiterated a Buy rating, while reducing the price target from $59 to $51.
• BTIG analyst Janine Stichter reaffirmed a Buy rating and price target of $70.
• Telsey Advisory Group analyst Cristina Fernández maintained an Outperform rating and price target of $65.

Check out other analyst stock ratings.

Guggenheim Securities: On Holding's sales growth of 30.6% in constant currency terms came in better than expected. Wholesale topped Street expectations and DTC coming in slightly below, Siegel said in a note. The company gross markets of 63.9% was meaningfully better than expected, expanding around 180 basis points year-on-year.

Siegel credits “structural operational efficiencies, strong full-price execution and favorable FX” for driving On’s growth.

Management's fiscal 2026 sales growth guidance of "at least" 23% growth in constant currency terms could "prove conservative," the analyst stated. Lighter tariffs could lend upside "to the already above-Street GM guide," he further wrote.

BTIG: On Holding reported adjusted EBITDA significantly higher than consensus estimates, Sticher said. The company's revenue growth of 22.6% year-on-year topped expectations of 20%, she added.

Although On Holding delivered "a largely clean print," its stock came under pressure likely due to the larger-than-expected FX headwinds projected for 2026, the analyst stated. "We see ’26 as a pivotal year from an innovation standpoint, given updates to all three key running franchises and the commercialization of Lightspray," she further wrote.

Telsey Advisory Group: On's 2026 sales growth guidance of "at least 23%" in constant currency terms was broadly in-line with its prior projection. Fernández expects an FX headwind of around 900 bps to result in reported sales growth of around 14%.

On Holding's guided to stable gross margins "as efficiencies offset higher tariffs," the analyst stated. "Positively, On noted its strong momentum has continued into 1Q26 and order books for Fall/Winter 2026 are strong," she further wrote.

ONON Price Action: Shares of On Holding had declined by 2.94% to $42.62 at the time of publication on Wednesday.

Image: Shutterstock