In the third quarter of 2025, On Holding AG has continued its robust performance trajectory with record-breaking earnings showcasing the strength of its strategic initiatives and global market presence. This article delves into the company's latest earnings report, focusing on its impressive financial results, key developments, and future outlook.
On Holding AG Earnings Overview
On Holding AG recorded another stellar quarter, demonstrating remarkable financial growth driven by exceptional demand across its global markets. The company's net sales increased by 24.9% year-over-year to CHF 794.4 million, with significant contributions from both the Direct-to-Consumer (DTC) and Wholesale channels. Notably, when measured on a constant currency basis, net sales rose by 34.5%.
Consolidated Financial Highlights
The table below presents key financial metrics for On Holding AG for the three-month period ended September 30, 2025:
| Financial Metric | Q3 2025 | Q3 2024 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue (CHF) | 794.4 million | - | +24.9% |
| Gross Profit Margin | 65.7% | 60.6% | +510 bps |
| Net Income (CHF) | 118.9 million | 30.5 million | +289.8% |
| Basic EPS (CHF) | 0.36 | 0.09 | +300% |
| Adjusted EBITDA (CHF) | 179.9 million | 120.1 million | +49.8% |
Revenue Breakdown by Segment
In a detailed analysis of On Holding AG's segment performance, the table below highlights revenue performance across different channels and regions:
| Segment/Region | Net Sales Q3 2025 (CHF) | Year-over-Year % Change | Constant Currency % Change |
|---|---|---|---|
| Direct-to-Consumer (DTC) | 314.7 million | +27.6% | +37.5% |
| Wholesale | 479.6 million | +23.3% | +32.5% |
| EMEA | 213.3 million | +28.6% | +33.0% |
| Americas | 436.2 million | +10.3% | +21.0% |
| Asia-Pacific | 144.9 million | +94.2% | +109.2% |
Segment Performance Analysis:
On's apparel category witnessed an unprecedented growth of 86.9%, or 100.2% on a constant currency basis, while the Asia-Pacific region saw a meteoric rise, marking a fourth consecutive quarter of triple-digit constant currency growth. The scalability of On's premium business model is further evidenced by strong performances in both the Direct-to-Consumer and Wholesale channels, where On recorded significant year-over-year net sales growth.
Key Developments and Operational Highlights
Among the notable developments this quarter, On celebrated its athletes’ achievements, particularly its first-ever gold medals at the World Athletics Championships. Another key highlight was the success of the performance-focused apparel line, which substantially contributed to On’s overall sales surge. The strategic expansion of On’s global brand presence through new retail stores in key markets such as Palo Alto, Zurich, and Tokyo continues to support its growth narrative.
Comments from Company Executives
Caspar Coppetti, Co-Founder and Executive Co-Chairman of On, expressed enthusiasm about the quarter’s achievements, stating, "This quarter was another one for the record books - a true showcase of our premium strategy in action." He emphasized the synergy of innovation, purpose, and performance in driving global momentum and consumer trust.
Martin Hoffmann, CEO and CFO, echoed this sentiment, highlighting On’s commitment to operational excellence and technological innovation. He attributed the company's consistent performance to its strategic focus, remarking, "Our consistent execution continues to bring our strategy to life - winning in performance and elevating our brand."
On Holding AG's Stock Forecast
Given On Holding AG’s impressive financial performance and operational momentum, the stock is positioned for growth. Based on current market trends and financial metrics, we project a high stock price target of $40, with a more conservative low target of $30. These projections are derived from a thorough fundamental analysis, which considers On’s remarkable revenue performance, strong brand momentum, and strategic positioning within the global sportswear market.
Conclusion
On Holding AG’s third quarter results highlight the effectiveness of its strategic initiatives and its ability to capitalize on strong consumer demand globally. The company's robust financial performance underscores its potential for continued growth and market leadership. With a clear focus on innovation, expansion, and operational excellence, On stands poised to achieve its ambitious future targets, reinforcing its status as a premium global sportswear brand.
