On Holding's Strong Q4 Results Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy ONON?
Source: Fool
On Holding Ltd's stock has declined by 3.02%, hitting a 20-day low, as broader market indices like the Nasdaq-100 and S&P 500 also faced significant losses of 1.40% and 1.15%, respectively.
Despite the stock's decline, On Holding reported strong Q4 2025 results, with expectations for over 20% growth in the coming year driven by robust performance across various segments. Analysts maintain a positive outlook, with a significant majority recommending a buy rating, indicating confidence in its future performance. However, the company faces potential risks, including foreign exchange headwinds and challenges in maintaining growth in wholesale channels.
The implications of On Holding's strong financial position and growth potential suggest that the stock may rebound once market conditions stabilize, making it an attractive option for investors looking for long-term growth.
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Analyst Views on ONON
Wall Street analysts forecast ONON stock price to rise
21 Analyst Rating
18 Buy
2 Hold
1 Sell
Strong Buy
Current: 31.880
Low
30.00
Averages
60.79
High
85.00
Current: 31.880
Low
30.00
Averages
60.79
High
85.00
About ONON
On Holding AG is a Switzerland-based company active in athletic sports accesories industry. The Company provides footwear and sports apparel and is engaged in developing and distributing performance sports products, through independent retailers and global distributors. The Company sells its products trough the internet and its own stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nike Faces Challenges as Stock Drops Nearly 60%
- Stagnant Sales Growth: Nike's revenue growth flatlined in fiscal 2024 as declining sales in North America and a strong dollar offset gains in China and other overseas markets, leading to increased market pressure on the company.
- Declining Gross Margin: The gross margin dropped from 43.5% in fiscal 2023 to 42.7% in fiscal 2025, as Nike relied on markdowns to boost sales and reduce inventory, resulting in a significant drop in EPS from $3.23 to $2.16, reflecting a decline in profitability.
- Intensified Market Competition: Nike is at a disadvantage against competitors like Adidas, On Holding, and Lululemon, particularly as the latter began selling its own branded shoes in 2022, further eroding Nike's market share.
- Strategic Adjustments: Nike is attempting to stabilize its business by increasing the sales mix of full-price and premium products, launching new marketing campaigns, and rebuilding relationships with wholesale retailers, although it still relies on markdowns for short-term sales boosts.
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Johnson Fistel Investigates On Holding AG for Potential Investor Claims
- Executive Changes Impact: On Holding AG announced that co-founders David Allemann and Caspar Coppetti will serve as Co-CEOs, Scott Maguire was promoted to President & COO, and CEO Martin Hoffmann will step down on May 1, 2026, leading to market concerns and a subsequent decline in stock price.
- Stock Price Decline: Following the executive changes announcement, On Holding's stock price dropped, reflecting investor apprehension regarding the uncertainty of the company's future leadership and potential risks that may affect its performance in a competitive market.
- Legal Investigation Initiated: Johnson Fistel is investigating whether On Holding complied with federal securities laws, particularly regarding the executive changes and their impact on investor losses, aiming to seek compensation for affected investors.
- Investor Rights Protection: The law firm is recognized for its success in securities class actions, having recovered approximately $90.725 million for clients, demonstrating its capability and influence in advocating for investor rights.
See More
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- Free Speech Concerns: An Alphabet spokesperson announced plans to appeal the verdict, while Meta warned that the ruling could have implications for free speech, highlighting the increasing regulatory scrutiny on tech companies, particularly as the U.K. and France consider similar youth social media bans.
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- Oil Price Fluctuations: Following the US's 15-point peace proposal, WTI crude oil prices tumbled over 2%, reflecting market concerns about the Middle East situation, which could lead to further disruptions in global supply chains.
- Mortgage Applications Decline: US MBA mortgage applications fell by 10.5% in the week ending March 20, with the purchase mortgage sub-index down 5.4% and refinancing down 14.6%, indicating the suppressive effect of high interest rates on the housing market.
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- Executive Transition Impact: ON Holding's CEO Martin Hoffmann stepped down, causing shares to drop nearly 11% on Wednesday; however, management emphasized that this change is not indicative of current business challenges but rather a transition towards the next phase of growth, reflecting their confidence in the future.
- Rating Adjustments: BTIG reiterated a ‘Buy’ rating on ON Holding with a price target of $70, while Telsey Advisory lowered its target from $65 to $60, indicating differing perspectives among analysts regarding the company's future performance.
- New Co-CEOs: David Allemann and Caspar Coppetti have been appointed as Co-CEOs while continuing as Executive Co-Chairmen of the Board, ensuring stability during this leadership transition.
- Market Sentiment: Despite a 25% decline in shares so far in 2026, retail sentiment around ON Holding remains in ‘extremely bullish’ territory, indicating strong investor confidence in the company's growth prospects.
See More
ONON Shares Decline Following Unexpected CEO Departure, Causing Division on Wall Street
Analyst Ratings: BTIG has maintained a 'Buy' rating on On Holding with a price target of $70, while analyst Cristina Fernandez has lowered her target from $65 to $60 but kept an 'Outperform' rating on the shares.
Leadership Change: CEO Martin Hoffmann stepped down, leading to a nearly 11% drop in shares, but management emphasized that this transition is not indicative of any business challenges.
New Co-CEOs: David Alleman and Caspar Coppetti will assume the roles of Co-CEOs while continuing as Executive Co-Chairmen of the Board, with co-founder Olivier Bernhard remaining focused on key performance initiatives.
Retail Sentiment: Retail sentiment around On Holding has been described as "extremely bullish," despite the company's shares falling 25% so far in 2026.
See More
Nike Faces Challenges as Stock Drops Nearly 60%
- Stagnant Sales Growth: Nike's revenue growth flatlined in fiscal 2024 as declining sales in North America and a strong dollar offset gains in China and other overseas markets, leading to increased market pressure on the company.
- Declining Gross Margin: The gross margin dropped from 43.5% in fiscal 2023 to 42.7% in fiscal 2025, as Nike relied on markdowns to boost sales and reduce inventory, resulting in a significant drop in EPS from $3.23 to $2.16, reflecting a decline in profitability.
- Intensified Market Competition: Nike is at a disadvantage against competitors like Adidas, On Holding, and Lululemon, particularly as the latter began selling its own branded shoes in 2022, further eroding Nike's market share.
- Strategic Adjustments: Nike is attempting to stabilize its business by increasing the sales mix of full-price and premium products, launching new marketing campaigns, and rebuilding relationships with wholesale retailers, although it still relies on markdowns for short-term sales boosts.
See More
Johnson Fistel Investigates On Holding AG for Potential Investor Claims
- Executive Changes Impact: On Holding AG announced that co-founders David Allemann and Caspar Coppetti will serve as Co-CEOs, Scott Maguire was promoted to President & COO, and CEO Martin Hoffmann will step down on May 1, 2026, leading to market concerns and a subsequent decline in stock price.
- Stock Price Decline: Following the executive changes announcement, On Holding's stock price dropped, reflecting investor apprehension regarding the uncertainty of the company's future leadership and potential risks that may affect its performance in a competitive market.
- Legal Investigation Initiated: Johnson Fistel is investigating whether On Holding complied with federal securities laws, particularly regarding the executive changes and their impact on investor losses, aiming to seek compensation for affected investors.
- Investor Rights Protection: The law firm is recognized for its success in securities class actions, having recovered approximately $90.725 million for clients, demonstrating its capability and influence in advocating for investor rights.
See More
Landmark Verdict Signals Warning for Tech Giants
- Social Media Liability Ruling: Meta and Alphabet were found liable in a landmark case regarding social media addiction among children, with a jury awarding $6.4 million in damages, potentially opening the floodgates for thousands of related claims and posing significant legal risks for tech giants.
- Free Speech Concerns: An Alphabet spokesperson announced plans to appeal the verdict, while Meta warned that the ruling could have implications for free speech, highlighting the increasing regulatory scrutiny on tech companies, particularly as the U.K. and France consider similar youth social media bans.
- Cybersecurity Partnership Expansion: CrowdStrike announced an expanded partnership with IBM, integrating its AI platform into IBM's cybersecurity services to combat a 44% increase in attacks on public-facing applications, indicating a strong push towards monetizing AI applications in the security sector.
- Memory Technology Innovation: Alphabet's TurboQuant technology significantly reduces the memory required to run large language models by at least a factor of six, causing related memory and storage stocks like Sandisk and Micron to drop over 3% yesterday, although this efficiency may ultimately drive increased demand in the long run.
See More
US Stocks Rise as Oil Prices Retreat Amid Peace Proposal to Iran
- Market Recovery: The S&P 500 Index rose by 0.54%, the Dow Jones Industrial Average increased by 0.66%, and the Nasdaq 100 Index climbed by 0.67%, indicating a positive market response to the US peace proposal with Iran, although future uncertainties remain.
- Oil Price Fluctuations: Following the US's 15-point peace proposal, WTI crude oil prices tumbled over 2%, reflecting market concerns about the Middle East situation, which could lead to further disruptions in global supply chains.
- Mortgage Applications Decline: US MBA mortgage applications fell by 10.5% in the week ending March 20, with the purchase mortgage sub-index down 5.4% and refinancing down 14.6%, indicating the suppressive effect of high interest rates on the housing market.
- International Market Rally: Overseas stock markets closed higher, with the Euro Stoxx 50 up 1.22%, China's Shanghai Composite up 1.30%, and Japan's Nikkei 225 up 2.87%, reflecting global market optimism regarding the US economic outlook.
See More
ON Holding Leadership Change and Rating Analysis
- Executive Transition Impact: ON Holding's CEO Martin Hoffmann stepped down, causing shares to drop nearly 11% on Wednesday; however, management emphasized that this change is not indicative of current business challenges but rather a transition towards the next phase of growth, reflecting their confidence in the future.
- Rating Adjustments: BTIG reiterated a ‘Buy’ rating on ON Holding with a price target of $70, while Telsey Advisory lowered its target from $65 to $60, indicating differing perspectives among analysts regarding the company's future performance.
- New Co-CEOs: David Allemann and Caspar Coppetti have been appointed as Co-CEOs while continuing as Executive Co-Chairmen of the Board, ensuring stability during this leadership transition.
- Market Sentiment: Despite a 25% decline in shares so far in 2026, retail sentiment around ON Holding remains in ‘extremely bullish’ territory, indicating strong investor confidence in the company's growth prospects.
See More
ONON Shares Decline Following Unexpected CEO Departure, Causing Division on Wall Street
Analyst Ratings: BTIG has maintained a 'Buy' rating on On Holding with a price target of $70, while analyst Cristina Fernandez has lowered her target from $65 to $60 but kept an 'Outperform' rating on the shares.
Leadership Change: CEO Martin Hoffmann stepped down, leading to a nearly 11% drop in shares, but management emphasized that this transition is not indicative of any business challenges.
New Co-CEOs: David Alleman and Caspar Coppetti will assume the roles of Co-CEOs while continuing as Executive Co-Chairmen of the Board, with co-founder Olivier Bernhard remaining focused on key performance initiatives.
Retail Sentiment: Retail sentiment around On Holding has been described as "extremely bullish," despite the company's shares falling 25% so far in 2026.
See More
