On Holding: New Financial Targets and Share Buyback Announced, FY26 Guidance Maintained

Our Take: This morning, ahead of its Investor Day presentation in Zurich, On issued three-year targets (to FY29) in which it targets a high-teens constant currency net sales CAGR through 2029 (above the mid-teens buyside bar) and corresponding absolute net sales reaching at least CHF5.6bn in 2029 (2% above BBG cons of CHF5.5bn). It also targets a Gross Margin of 65%+ throughout the 2026-2029 period and an adjusted EBITDA margin of 22%+ by 2029 (vs cons and JPMe 21%), implying an EBITDA growth CAGR of 20%+. As widely anticipated, the company also announced an inaugural share repurchase of up to $1bn (c.11% of current market cap) through the end of 2029. In addition, On confirmed its FY26 guidance this morning, while guiding to a Q3 cFX net sales growth of "around 17%" (slightly lower than cons/JPMe of 18%). Given the weak sentiment ahead of the Investor Day, the higher than expected mid-term growth CAGR, and a meaningful share buyback plan, we expect shares react positively upon market