On Holding Stock Surges on Buyback Announcement Despite Unchanged Guidance
On Holding (ONON) stock rose by 7.6% on September 22, 2026, despite the company not changing its near-term guidance during an investor day in Zurich. The market reacted positively to On's announcement of a $1 billion share buyback plan through 2029 and long-term growth targets for high teens revenue growth by that year. The stock had declined over 40% in 2026 before the recent rebound, trading at nearly six times its trailing twelve-month revenue. Management emphasized maintaining pricing discipline rather than chasing volume, which led to a reduction in shipments into heavily promotional wholesale markets earlier this year but helped preserve gross margins and direct-to-consumer growth. While the buyback is seen as positive by investors, it alone may not be enough for long-term success; On's future performance will depend on new product launches like the Cloudsurfer 3. The market appears to have priced in confidence that this strategy can sustain revenue at full price rather than relying solely on volume growth.
Topics: buyback announcement long-term guidance stock price movement