On Holding authorizes first $1B buyback and 2029 targets; stock logs best day in over 10 months

On Holding unveiled its first-ever share buyback on Tuesday, authorizing up to $1 billion in repurchases through the end of 2029, and set ambitious 2029 financial targets at its investor day. Shares surged as much as 14% in intraday trading — their biggest single-session pop in more than ten months — before settling to a 7.6% gain at the close.

The repurchase authorization, approved by On's board, covers Class A ordinary shares and runs through December 2029. It is the company's first buyback in its history — a milestone that caught at least one analyst off guard. Morningstar's David Swartz had expected On to begin buying back shares only in 2027, and at a smaller scale, according to Reuters.

The 2029 targets call for net sales of at least 5.6 billion Swiss francs — about $6.83 billion at current exchange rates — growing at a high-teens percentage annual rate on a constant-currency basis between 2026 and 2029. The company also said it expects to hold gross margin at or above 65% while lifting its adjusted EBITDA margin to at least 22%.

The margin trajectory implies a fast profit ramp: On said adjusted EBITDA should compound at more than 20% a year from 2026 through 2029. On the low end of both the sales and margin targets, that arithmetic points to roughly 1.2 billion francs of adjusted EBITDA in 2029.

Investors cheered the package. The stock opened 11% higher at $30.40, peaked at $31.16 — a 14.1% gain over Monday's $27.32 close — and finished at $29.39. Volume topped 42 million shares, roughly triple the prior session. The intraday advance was On's strongest since November 2025, when the shares jumped about 18%.

The rally was a welcome reversal for a stock that has been one of sportswear's worst performers this year. On shares had fallen about 41% in 2026 through Monday's close, as slowing growth — particularly in its key Americas market — weighed on the once high-flying name.

The optimism follows a soft second quarter. On reported Q2 net sales below estimates, with weakness concentrated in its Americas segment — the region that once powered the brand's explosive growth and the one it must now reignite to sustain high-teens growth through 2029.

Alongside the long-term plan, On reaffirmed its 2026 outlook: low-20% constant-currency sales growth, gross margin of at least 65%, and an adjusted EBITDA margin of 19.5% to 20%. It expects third-quarter constant-currency revenue growth of about 17%. The annual forecast excludes tariff refunds of up to 53 million francs — about $65 million — expected in the current quarter; the company said it had already received about 28 million francs in refund proceeds as of mid-August.

The 2029 plan demands a meaningful step-up from here. For 2026, the company had previously guided revenue of CHF 3.47 billion to CHF 3.56 billion, versus Wall Street consensus of roughly CHF 3.51 billion, according to Fiscal.ai data — meaning On needs to add more than CHF 2 billion of annual sales in the three years after 2026 to clear the 2029 floor.

Management also told investors it expects to significantly exceed the 2026 financial targets it set at its last investor day in 2023, framing the new plan as an acceleration rather than a reset.

Co-founder and co-CEO Caspar Coppetti used the day to spotlight On's premium positioning. "We are the brand with the highest ASP (average selling price) and the lowest discount rates," Coppetti told CNBC. The company has raised its average product price point to $270 from $145 since the 2023 investor day, he said.

On is betting the growth will come from its core running, sneaker and apparel businesses — plus two new frontiers: soccer and golf. The strategy follows last week's signing of Kylian Mbappé as the face of On's new soccer line. Soccer is a sport long dominated by Nike, Adidas and Puma — a hierarchy On now intends to challenge.

Not everyone is sold. "These are aggressive targets, but On's management sounds confident," Morningstar's David Swartz said. Jefferies' Randal Konik was more cautious: "We would rather see a beatable bar than a bold one."

The company also appointed Laura Miele, president of enterprise development at Electronic Arts, as lead independent director. Miele has served on On's board and audit committee since 2024.

The test now is execution. Investors will watch third-quarter results for evidence that the Americas slowdown is stabilizing, the pace of tariff-refund receipts, and whether the buyback and the margin-expansion story are enough to sustain Tuesday's re-rating.