On Holding Stock Surges on $1 Billion Buyback, Ambitious 2029 Growth Targets

Shares of On Holding AG (ONON) surged more than 6% in pre-market trading after the Swiss sportswear company announced its first-ever share buyback program and a new set of ambitious multi-year financial goals during its 2026 Investor Day event in Zurich.

A New Financial Framework

The company's board authorized a capital return program to repurchase up to $1 billion of its Class A ordinary shares through December 31, 2029. Alongside the buyback, On Holding outlined a detailed long-term financial roadmap, providing investors with concrete targets for the coming years.

Key financial goals for 2029 include:

• Net sales of at least CHF 5.6 billion.
• High-teens annual net sales growth on a constant-currency basis.
• A gross profit margin of 65% or higher.
• An adjusted EBITDA margin of at least 22%.

These targets imply a compound annual growth rate for EBITDA exceeding 20% from 2026 through 2029. The company also reaffirmed its financial outlook for 2026.

Market Reaction and Context

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The announcements provided a significant catalyst for the stock, which had been trading near its 52-week low of $26.36 after falling more than 40% year-to-date. The sharp upward move was entirely company-specific, as the broader S&P 500 and Nasdaq indices were flat in pre-market activity, according to Investing.com.

Analyst reaction was positive, with both Stifel and Goldman Sachs reiterating their Buy ratings on the stock. Stifel holds a price target of $41, while Goldman Sachs targets $42, with both firms citing the credibility of the new financial framework presented by management.

Strategic and Governance Updates

On also announced it is targeting Football and Golf as new growth pillars, complementing its established categories in running, sneakers, and apparel. This follows the recent high-profile signing of football star Kylian Mbappé as a brand partner.

In a governance update, the company appointed Laura Miele as its lead independent director, effective September 21. Miele, who has served on On's board since 2024, is the president of enterprise development at Electronic Arts.