On Holding (ON)Soars 18% on Q3 Blowout

We recently published Market Beaters: 10 Stocks Defying the Odds. On Holding AG (NYSE:ONON) is one of the best-performing stocks on Wednesday.

On Holding saw its share prices jump by 18 percent on Wednesday to close at $41.51 apiece following a stellar earnings performance in the third quarter of the year.

In an updated report, On Holding AG (NYSE:ONON) said it grew its net income by 290 percent to 118.9 million Swiss francs from only 30.5 million Swiss francs in the same period last year.

Net sales jumped by 25 percent to 794.4 million Swiss francs from 635.8 million Swiss francs year-on-year, on the back of strong performance across both direct-to-consumer and wholesale channels, which grew by 27.6 percent and 23.3 percent, respectively.

“Building on a year defined by strategic focus and outstanding execution, On looks ahead with strong confidence. Brand momentum remains exceptionally high, fueled in recent weeks by remarkable athlete achievements, cultural moments elevating On globally, and the launch of its inspiring holiday campaign. Reflecting the strength of its third-quarter performance and sustained momentum, On is raising its full-year 2025 guidance across all key metrics,” On Holding AG (NYSE:ONON) said.

Net sales are now targeted to grow by 34 percent year-on-year, higher than the 31 percent outlook previously; Gross profit margin is expected to jump by 62.5 percent, as compared with the prior target of 60.5 percent to 61 percent; while adjusted EBITDA margin is projected to grow by 18 percent, versus 17 to 17.5 percent prior.

While we acknowledge the potential of ONON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.