On Holding Approves $1 Billion Buyback, Sets 2029 Revenue Target

Suraj Santlani Tue, September 22, 2026 at 3:35 PM PDT | 4 min read

• ONON +2.62%

On Holding AG (NYSE: ONON) unveiled new long-term targets during its investor day in Zurich on September 22. The Swiss sportswear company aims to achieve net sales of at least CHF 5.6 billion by 2029, driven by a high-teens annual growth rate in constant currency. The board also authorized the company's first-ever share buyback program, valued at up to $1 billion. Shares rose nearly 9% on the news.

The company's outlook for the current year remains unchanged. On still expects constant currency sales growth in the low 20s and an adjusted EBITDA margin near 20%. By 2029, it is targeting an adjusted EBITDA margin of at least 22%.

Growth and Margin Are Meant to Rise Together

The targets are unusual for a company at this stage of development. Brands growing this fast typically reinvest gains into marketing and store openings, keeping margins flat for years. On is telling investors it can sustain high-teens growth for three more years while lifting its adjusted EBITDA margin by at least two percentage points.

Founder and co-CEO Caspar Coppetti stated plainly that top-line and margin expansion "are not in conflict."

On is also signaling that it expects to out-earn its own spending plans. This is the company's first buyback. Committing $1 billion to share repurchases while funding two new sports categories reflects a bet that operating cash flow will cover both. Most brands growing at this pace reinvest in stores and marketing instead.

CFO Frank Sluis described the outlook as establishing On as "a high-quality earnings compounder."

On identifies running, sneakers, and apparel as its growth pillars, with football and golf as new entries. Running and sneakers alone cannot sustain high-teens growth. Apparel is the category to watch, as On sells far less of it than its larger rivals do.

The sales channel matters as much as the category. On has not specified how it will bring football and golf to market. Relying on wholesale partners could pressure the margins the 2029 target depends on.

A 2029 Target Is a Long Promise in a Fast Market

The plan leaves no room for error. On is already absorbing tariffs, and its guidance excludes up to $65 million in expected tariff refunds that have not yet been received. Its momentum also depends on maintaining a premium position while Nike works through inventory and Adidas pushes aggressively on lifestyle.

The target is set in Swiss francs, while much of the company's revenue comes in dollars and euros. A stronger franc makes the CHF 5.6 billion goal harder to reach, even if demand holds.

The near-term picture is softer than the headline suggests. On guided to constant currency growth of around 17% in the third quarter, below the low-20s rate expected for the full year. Growth is already slowing as comparisons become more difficult, and the 2029 plan asks it to settle at high teens rather than decline further.

The stock trades at around 14 times forward earnings, well below last year's level, so management is not buying at a peak. However, a company entering two new sports and expanding its apparel line could instead put $1 billion into stores, product development, and marketing rather than its own shares.

Conclusion

On has presented a three-year plan pairing high-teens growth with rising margins, backed by a $1 billion buyback that signals the company expects to generate more cash than it needs. However, the 17% third-quarter guidance, tariff exposure, and the challenge of maintaining a premium position while rivals discount remain key concerns.

Third-quarter results on November 17 will show whether the slowdown is a comparison effect or something structural. The number to watch is not the quarter itself, but whether On can hold full-year growth in the low 20s.

Market Sentiment

On Holding AG (NYSE: ONON) was held by 54 hedge funds with a combined stake value of approximately $2.3 billion at the end of Q2 2026, according to the Insider Monkey database. This is up from 52 hedge fund holders with a cumulative investment value of around $1.4 billion in the previous quarter.

This article is originally published at Insider Monkey.