On Holding Stock Falls 10% As CEO Exits, Co-Founders Take Over

by | Mar 25, 2026 | General

On Holding Ltd (NYSE:ONON) shares are trading lower Wednesday morning after the company announced a major leadership transition, with CEO Martin Hoffmann stepping down and co-founders David Allemann and Caspar Coppetti taking over as co-CEOs as of May 1. The company also said Scott Maguire will become President & COO as part of the new structure. Here’s what investors need to know.

CEO Departure Raises Near-Term Execution Questions

The move appears to be pressuring the stock because investors often react cautiously to CEO changes, even when companies frame them as planned transitions. In this case, Hoffmann is not just any departing executive.

On said he spent 13 years with the company, including five years as CEO and played a central role in helping transform the business from a Swiss startup into a multi-billion-dollar global sportswear brand.

Co-Founders Take Over As On Enters Next Growth Phase

Management presented the shift as part of On’s next growth phase rather than a sign of operational trouble. The company said the new structure is meant to bring founder-led strategic vision closer to day-to-day execution as it scales globally.

On also highlighted that it is coming off a record-breaking 2025, with annual net sales surpassing CHF 3 billion and gross profit margins reaching new highs.

Even so, leadership shakeups can create near-term uncertainty around continuity, execution and governance, which may help explain the weakness in ONON shares despite the company’s upbeat messaging around its long-term roadmap.

May 12 Earnings Could Test On Holding’s Premium Valuation

Looking further out, the next major catalyst for the stock arrives with the May 12 earnings report.

  • EPS Estimate: 29 cents (Up from 23 cents YoY)
  • Revenue Estimate: $1.06 Billion (Up from 81 cents Billion YoY)
  • Valuation: P/E of 51.1x (Indicates premium valuation relative to peers)

Wall Street Still Sees Upside In ONON

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $61.47. Recent analyst moves include:

  • Truist Securities: Buy (Lowers Target to $55.00) (Mar. 4)
  • Barclays: Overweight (Lowers Target to $57.00) (Mar. 4)
  • Guggenheim: Buy (Lowers Target to $51.00) (Mar. 4)

ONON Shares Drop 9% Wednesday Morning

ONON Price Action: On Holding shares were down 10.68% at $35.36 at the time of publication on Wednesday, according to Benzinga Pro data.

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