On Holding beats Q1 '26 targets with strong sales and margin growth, raising full-year guidance.

On Holding reported strong Q1 2026 results, with Asia-Pacific net sales up 61% in constant currency, driving growth. The company exceeded expectations with a gross margin of 64.2% and an adjusted EBITDA margin of 21%, prompting management to raise their full-year margin guidance. This performance highlights On Holding's growth potential and suggests the stock may be undervalued, with a valuation target near $50. Investors should watch for continued momentum in the Asia-Pacific region as a key growth driver.