On Holding shifts to luxury lifestyle brand, posts 26% revenue growth and 64% gross margin in Q1 2026

On Holding is evolving from a pure running brand into a luxury lifestyle brand, broadening its total addressable market and strengthening its premium pricing power. The company's competitive edge comes from innovative technologies like LightSpray and SURREAL Superfoam, which support margin growth and brand differentiation. In Q1 2026, On Holding reported a 26% year-over-year revenue increase and expanded its operating margin to 14.1%, with a gross margin reaching 64%. Management is focused on maintaining premium brand value rather than volume growth. The company is rated 'Strong Buy' with a price target range of $75.60 to $97.20, reflecting 95–150% upside potential based on strong growth, innovation, and premium valuation compared to peers.