On Holding Shares Plunge 22% to 52-Week Low After Q2 Sales Miss and Lowered Outlook

On Holding AG reported Q2 2026 revenue of CHF 850.3 million, missing analyst estimates of CHF 878 million despite a 13.5% year-over-year gain on a reported basis and 21.6% growth at constant currency. Adjusted EPS of CHF 0.35 beat the CHF 0.34 estimate, and gross margin expanded 390 basis points to 65.4%, but adjusted EBITDA of CHF 168.1 million came in just below the CHF 171 million consensus. The company's full-year 2026 revenue guidance of CHF 3.47 billion to CHF 3.56 billion disappointed investors, with the lower end of the range falling short of the CHF 3.56 billion estimate.

Management cited wholesale softness and cautious retailer sell-in, while higher U.S. tariff costs and restrained consumer spending also weighed on results. Shares fell as much as 22% on the day, closing at $30.91, down 20.29%, marking the stock's worst single-day decline since its 2021 IPO and setting a fresh 52-week low. Direct-to-consumer demand was a relative bright spot, with the company reporting record DTC growth during the quarter.

On Holding raised its full-year gross margin outlook while maintaining its adjusted EBITDA margin forecast, and analysts at William Blair issued negative commentary on the results. At least one analyst, at Seeking Alpha, upgraded the stock to Buy following the selloff, citing a growth-at-a-reasonable-price setup and the company's roughly 20% top-line growth guidance for the full year.