On Holding AG reported third-quarter fiscal 2026 results on Nov 10, 2026. The company posted adjusted earnings per share of $0.54, beating the consensus estimate of $0.38 by roughly 42.11%. Reported revenue was $931.40 million, compared with expectations of $929.82 million, effectively an in-line outcome.
Despite the upside to EPS, On's shares declined sharply, trading at $34.50 - down 8.07% as of Nov 10 at 12:31 PM EST; the pre-market print reflected the same decline. The stock is down 26.37% year-to-date and its 52-week range sits between $26.37 and $51.08.
The disconnect between an earnings beat and a negative market reaction suggests investors placed greater weight on revenue composition and the company's near-term outlook than on the headline EPS number. Coverage of the Q3 conference call was not available to confirm the drivers behind the intraday sell-off, and it could not be independently verified from the available data whether management adjusted guidance on the call.
Quarterly results history
| Quarter | EPS vs Est | Revenue vs Est | Price Reaction |
|---|---|---|---|
| Q4 2025 (Mar 3) | 0.25 vs 0.28 | 743.8M vs 844.98M | -7.55% |
| Q1 2026 (May 12) | 0.37 vs 0.22 | 831.9M | +3.97% |
| Q2 2026 (Aug 11) | 0.35 vs 0.30 | 850.3M vs ~913M | -20.04% |
| Q3 2026 (Nov 10) | 0.54 vs 0.38 | 931.4M vs 929.8M | -8.1% (intraday) |
Note: the data feed shows scale errors on some older revenue estimates, so the historical comparisons should be treated as approximate.
What the quarter means
On's top line recovered from the Q2 shortfall; revenue rose sequentially from $850.3 million to $931.4 million, implying sequential growth of roughly 9.5%. This rebound indicates the Q2 revenue weakness was largely a one-off in the view supported by the reported figures.
Profitability metrics held up in the quarter. This is the third EPS beat in the last four quarters. In May, management had provided margin targets including a gross margin of at least 64.5% and an adjusted EBITDA margin in the 19.5% to 20% range, and the Q3 result keeps those margin anchors in focus.
On's earlier pullback in wholesale sell-in, referenced by some analysts in the wake of Q2 results, appears to have been a deliberate inventory-management response to a promotional environment. Telsey specifically cited a decision to reduce wholesale sell-in to manage inventory; Q3 revenue landing essentially in line with expectations suggests that the reset in wholesale channels has stabilized.
Outstanding questions and near-term risks
- Growth versus guidance: Management had originally guided to at least 23% constant-currency growth for 2026 but trimmed revenue guidance in August. Consensus for FY2026 stands at $3.51 billion revenue and $1.44 EPS.
- Q4 hurdle: Current consensus for the March quarter anticipates revenue of $900.73 million and EPS of $0.31, which would represent about a 3% sequential decline from Q3.
- Estimate trends: Over the past 90 days, EPS estimates have risen 3.37% while revenue estimates have fallen 0.68%, indicating improving earnings quality but a lagging top line.
Upcoming catalysts to monitor
- Q4/FY2026 report: No date for the next quarterly report is confirmed in the available data. The prior Q4 report was released on Mar 3, 2026. Consensus for the March 2027 quarter is $987.33 million in revenue and $0.42 EPS.
- SURREAL / Cloudsurfer 3 launch: Management said the Superfoam platform launches this fall, and Run Specialty order books were reported to be up more than 25% year over year as of May.
- Wholesale and promotional backdrop: Americas wholesale has been cited as a weakness in August commentary, making channel demand an area to watch.
- Tariffs: Guidance assumed 20% incremental tariffs on Vietnam and excluded any refunds; any change to these assumptions could have a material effect on outturns relative to guidance.
- Peer read-throughs: Nike reported a 4.2% revenue decline; that outcome could reduce competitive pressure on On while also highlighting softness across the category.
- Leadership transition: A new chief financial officer is succeeding Martin Hoffmann, who was serving as both CEO and CFO. The first full quarter under the new finance chief will draw investor scrutiny.
Bull and bear considerations
Supporters point to durable margins and recurring EPS beats. Consensus estimates for FY2027 project $4.18 billion in revenue and $1.71 EPS, which corresponds to roughly 19% revenue growth year over year.
Critics note that revenue merely matched expectations this quarter, wholesale demand remains soft in parts of On's business, and the share price has exhibited significant downside when guidance disappoints. The Q4 consensus already embeds a sequential revenue dip, underscoring the importance of the upcoming quarter.