On Targets High-Teens Sales Growth and 22%+ EBITDA Margin by 2029

On Holding AG used its 2026 Investor Day to lay out a more ambitious set of medium-term goals, telling investors it expects high-teens constant-currency net sales growth through 2029 and an adjusted EBITDA margin of at least 22% by the end of that period. The Swiss sportswear company also said the plan points to at least CHF 5.6 billion in net sales in 2029, alongside a gross profit margin of at least 65%.

The new targets give investors a clearer view of how management thinks the brand can scale from a fast-growing premium running label into a broader global sportswear company. They also extend the framework On introduced three years ago, when it set out 2026 objectives that management now says the business is on track to significantly exceed.

Alongside the operating targets, On said its board has authorized an inaugural share repurchase of up to $1 billion of Class A ordinary shares through the end of 2029. The company presented the buyback as part of a broader capital-allocation policy built on what it described as strong cash generation and a solid balance sheet.

New 2029 goals point to continued premium growth

In its Investor Day release, On said the 2026 to 2029 plan is built around what it calls its Premium Playbook. The company said that framework is intended to support multi-dimensional growth across product verticals, geographies and sales channels while preserving the higher gross margins that have been central to its equity story.

The headline financial targets are straightforward. On is aiming for high-teens constant-currency net sales growth over the three-year period, which it said would translate into at least CHF 5.6 billion in net sales by 2029 at current exchange rates. Management also said it expects to sustain a gross profit margin of at least 65% through the period and reach an adjusted EBITDA margin of more than 22% by 2029. Taken together, those assumptions imply an adjusted EBITDA compound annual growth rate above 20% from 2026 through 2029.

Those goals suggest management believes brand momentum can remain strong even as the company becomes larger. The sales target is not framed as a one-year surge or a recovery plan. Instead, it reflects an assumption that On can keep adding demand across multiple parts of the business while converting more of that growth into profit as scale improves.

Management also used the event to emphasize that the company is approaching the next planning cycle from a stronger base than it had when it set its prior 2026 goals. On said it is on track to significantly exceed the 2026 targets introduced at its 2023 Investor Day, a sign that recent expansion in footwear, apparel and direct-to-consumer sales has come in ahead of the earlier roadmap.

Core categories stay central as On pushes into new sports

On tied the new financial ambitions to specific growth engines rather than presenting them as purely top-down margin targets. The company said Run, Sneaker and Apparel are expected to provide outsized contributions through 2029. That keeps the company rooted in the categories that have driven its rise, especially performance running, while recognizing that everyday wear and apparel are becoming more important to the brand’s identity and revenue mix.

At the same time, management said it plans to enter Football and Golf, two categories that could expand the addressable market and deepen the brand’s reach beyond its existing franchise. The move does not mean the company is abandoning its premium positioning. If anything, the Investor Day messaging suggested the opposite. On repeatedly stressed that it wants to build what it called the most premium global sportswear brand, with innovation, design and selective distribution still doing much of the strategic work.

That matters because the company’s margin goals rely not just on selling more products, but on doing so without giving up price discipline or brand equity. A gross margin floor of 65% is a demanding promise in the sportswear industry, where expansion into broader categories can sometimes bring heavier discounting, more complex sourcing and higher marketing costs. On’s argument is that premium demand, disciplined execution and a greater mix of direct customer relationships can offset those pressures.

The company also described its growth as multi-dimensional, meaning the plan is not dependent on a single product family or a single region doing all of the work. That is important in a consumer business where wholesale patterns, fashion cycles and foreign-exchange swings can all influence reported revenue from one quarter to the next. By framing the targets in constant-currency terms, On is trying to focus investors on underlying demand rather than the noise created by exchange-rate movements.

Buyback, 2026 outlook and the next phase of execution

The $1 billion share repurchase authorization adds a shareholder-return element that had not previously been central to the company’s narrative. On said the repurchase can run through the end of December 2029. For a company still positioning itself as a high-growth brand, the move signals that management sees enough financial flexibility to invest in expansion while also returning capital.

On did not present the repurchase as a substitute for growth investment. Instead, the capital-allocation message was that the company expects strong enough cash generation to support both priorities. That is consistent with the broader Investor Day pitch. Management wants investors to see the business not only as a revenue grower, but also as a company capable of compounding earnings and cash flow as scale improves.

The company also reiterated its full-year 2026 outlook. On still expects constant-currency net sales growth in the low-20% range this year, a gross profit margin of at least 65.0% and an adjusted EBITDA margin between 19.5% and 20.0%. In addition, it said third-quarter 2026 constant-currency net sales growth is expected to be around 17%, reflecting disciplined wholesale sell-in execution after its second-quarter results and continued strength in direct-to-consumer demand.

One notable qualifier in the 2026 outlook is that the guidance excludes the benefit of tariff refunds. On said it expects to receive up to $65 million, or up to about CHF 53 million at current exchange rates, in the third quarter, with that amount expected to benefit reported gross profit in the quarter. By separating that item from the underlying outlook, management is trying to show what the core operating picture looks like before a potentially favorable but non-recurring boost.

For investors, the next question is not whether the targets sound ambitious. They clearly do. The more important question is whether On can widen its category reach, maintain its premium appeal and deliver cost leverage at the same time. The company’s 2029 framework essentially says it can do all three. Future quarterly results will show how much evidence emerges to support that claim, starting with whether On can deliver the low-20% growth and margin profile it has reaffirmed for 2026.