On Holding shares rose 4.05% to $35.20 on May 13, 2026, as investors responded to a stronger-than-expected first-quarter report and an upgraded full-year EBITDA outlook. The move came with unusually heavy volume, signaling that the market is reassessing a stock that had fallen roughly 40% from its 52-week high.
The key catalyst was a Q1 earnings beat that exceeded analyst EPS expectations by 36.82%, while revenue also came in ahead of consensus. For a premium consumer brand facing questions over tariffs, demand, and management changes, the report offered a notable test of whether the growth story remains intact.
At $35.20, On Holding still trades well below its $61.29 peak, but the latest results suggest the company has not lost the operating momentum that originally supported its premium valuation. That makes the next few quarters especially important for investors weighing recovery potential against execution risk.
Key Facts
- On Holding stock closed at $35.20 on May 13, 2026, up 4.05% from the prior close of $33.83.
- First-quarter EPS beat analyst expectations by 36.82%, while revenue topped consensus by 1.26%.
- Session volume reached 13.40 million shares, more than double the 6.42 million average daily volume.
- The stock remains 42.6% below its 52-week high of $61.29, with a market capitalization of about $11.69 billion.
- On maintained its 2026 revenue growth outlook at 23% in constant currency and raised its full-year EBITDA guidance.
On Holding stock
The immediate story behind the rebound in On Holding stock is straightforward: the company delivered the kind of quarter that forces investors to revisit a bearish narrative. The post-Q4 sell-off had been driven by concerns over softer consumer spending, tariff risk tied to Vietnam manufacturing, and uncertainty after an unexpected CEO departure. Q1 did not eliminate those concerns, but it showed the business is still expanding, margins are still improving, and management still sees enough visibility to lift EBITDA expectations.
That matters because On is not being valued like a mature footwear name. Its investment case depends on sustained premium growth, strong gross margins, and the ability to build a larger global lifestyle brand beyond running shoes. The company ended 2025 with a record gross margin of 63.9%, up 180 basis points year over year, while adjusted EBITDA for full-year 2025 rose 46% to CHF 567 million. Those figures help explain why investors reacted strongly to a quarter that suggested margin resilience remains credible.
The market is also focusing on channel quality, not just top-line growth. On’s direct-to-consumer business has become a major driver of profitability, with 2025 DTC revenue reaching CHF 1.26 billion after 39.9% constant-currency growth. That channel gives the company more pricing control, richer customer data, and better protection against wholesale markdown pressure. For shareholders, this is central to the thesis: if DTC keeps expanding and gross margins remain above 60%, the stock may regain some of the premium multiple it lost during the correction.
On Holding’s first-quarter results did not remove every risk, but they delivered a clear message: the company’s growth engine and margin structure remain stronger than the recent sell-off implied.
Why the recovery case is gaining traction
Several structural growth drivers continue to support the longer-term outlook. In 2025, Asia-Pacific net sales doubled to CHF 511 million, highlighting the company’s ability to scale beyond its established Western markets. Apparel also grew from CHF 100 million in 2024 to CHF 170 million in 2025, while accessories rose from CHF 18 million to CHF 40 million. Together, those categories now represent about 7% of net sales, giving On more ways to deepen consumer engagement.
The company is also investing in manufacturing innovation through its LightSpray platform, a process designed to produce ultralight shoe uppers in less than four minutes using robotic application of thermoplastic filament. On opened a LightSpray factory in Zurich in 2025 and another in Busan in early 2026, with plans to increase capacity by 30 times. If successful at scale, that technology could strengthen product differentiation and gradually reduce some supply-chain concentration risk.
Implications for Investors
For investors, the latest move in On Holding stock is best viewed as a potential reset rather than a definitive all-clear signal. The earnings beat and higher EBITDA guidance improve confidence that the business can still grow through a volatile macro backdrop. That is especially relevant after the stock’s decline from above $60 to the mid-$30s, which had already priced in a substantial amount of skepticism.
There are still meaningful risks to monitor. The biggest is manufacturing concentration in Vietnam, which accounts for roughly 90% of production. A 20% tariff on Vietnamese imports would pressure costs and test the company’s pricing power. On’s gross margin profile provides a cushion that many rivals do not have, but investors should watch whether management can preserve margin expansion if tariff pressure intensifies in the second half of 2026.
Leadership execution is another watch-point. Co-founders David Allemann and Caspar Coppetti have taken on expanded roles following the CEO transition, and founder-led companies can often move quickly in brand-building phases. Still, On now operates at global scale with roughly 4,000 employees, so investors will want evidence over the next several quarters that strategic vision is being matched by operational discipline.
Valuation will remain part of the debate. With a trailing P/E of 36.59 and elevated volatility reflected in a beta of 2.09, the stock is unlikely to trade like a defensive name. But the combination of 23% constant-currency revenue growth guidance, improving EBITDA, strong DTC momentum, and category expansion gives bulls a foundation for arguing that the sell-off went too far. Analysts remain divided on near-term tariff effects, yet the broad 12-month consensus target near $56.77 suggests the market still sees substantial upside if execution holds.
The next phase for On Holding stock will depend on whether the company can sustain double-digit growth, defend its premium gross margin, and show that Q1 was the start of a more durable rerating. If those elements continue to line up, the rebound on May 13 may look less like a one-day reaction and more like the beginning of a broader recovery.
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