On Holding has the stronger disclosed business-growth outlook as of October 4, 2026. Its latest reported quarter showed substantially faster sales growth, and management expects that pace to continue for the year. Nike is still in contraction and forecasts another year of declining revenue. That makes On the clearer operating-growth story—not automatically the better stock to buy. The available company results do not establish which shares offer the better return at their current valuations.
How do Nike and On’s latest growth figures compare?
The periods are not aligned: Nike’s latest report covers its first quarter of fiscal 2027, while On’s covers its second quarter and first half of calendar 2026. The comparison below labels each period and keeps reported growth separate from currency-adjusted growth.
| Measure | Nike | On Holding |
|---|---|---|
| Latest quarterly sales | $11.2 billion in Q1 FY2027, ended August 31, 2026; down 4% reported and 5% currency-neutral year over year. Source: Nike’s October 1, 2026 issuer release. | CHF 850.3 million in Q2 2026; up 13.5% reported and 21.6% constant currency year over year. Source: On’s August 11, 2026 issuer release. |
| Latest full-year revenue outlook | FY2027 revenue expected to decline by a high-single-digit percentage. Source: Nike’s October 1, 2026 issuer release. | FY2026 sales expected to grow in the low-20% range constant currency, or CHF 3.47–3.56 billion at current spot rates. Source: On’s August 11, 2026 issuer release. |
| Latest gross margin | 42.8% in Q1 FY2027, up 60 basis points year over year. Source: Nike’s October 1, 2026 issuer release. | 65.4% in Q2 2026, up 3.9 percentage points year over year. Source: On’s August 11, 2026 issuer release. |
| Latest channel growth | Wholesale down 1% and Nike Direct down 9% currency-neutral in Q1 FY2027. Source: Nike’s October 1, 2026 issuer release. | DTC up 34.3% and wholesale up 12.7% constant currency in Q2 2026. Source: On’s August 11, 2026 issuer release. |
| Profitability outlook | Adjusted diluted EPS of $1.15–$1.35 for FY2027, excluding about $0.15 of Pace restructuring expense. Source: Nike’s October 1, 2026 issuer release. | FY2026 adjusted EBITDA margin guidance of 19.5%–20.0%. Adjusted EBITDA is a non-IFRS measure. Source: On’s August 11, 2026 issuer release. |
On also reported that sales for the six months ended June 30, 2026, grew 14.0% reported and 24.0% constant currency. Nike’s and On’s currency-adjusted figures are useful for understanding underlying sales trends without exchange-rate movements, but they are company-reported measures and do not make the companies’ fiscal periods identical.
Why is On growing faster?
Direct sales are leading, with wholesale still growing
On’s DTC business grew faster than wholesale in the latest quarter. Management said it was deliberately managing wholesale sell-in in a promotional market, protecting full-price sales and leaving room for upcoming product launches. That discipline may help preserve the brand’s premium positioning; it also means investors should watch whether consumer demand continues to support direct-channel growth as the company scales.
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Growth is broadening geographically, but Asia-Pacific carries more weight
On reported constant-currency sales growth across all three listed regions in Q2 2026: EMEA rose 20.5%, the Americas 13.0%, and APAC 54.7%. APAC accounted for 20.0% of quarterly sales, with reported strength in China, Japan, and South Korea. The regional breadth is encouraging, while the rapid expansion in APAC raises the importance of sustaining demand in markets gaining weight in the business.
New categories are growing from a small base
In Q2 2026, constant-currency apparel sales grew 56.2% and accessories grew 102.2%. Shoes nevertheless represented 91.9% of sales. Apparel and accessories offer potential diversification, but their growth rates should not be confused with a scale of revenue comparable to footwear.
Rank #2
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What does Nike need to turn around?
Weakness is concentrated in important businesses and regions
Nike’s latest results show a mixed regional picture: North America grew 2% currency-neutral, while Greater China Nike Brand revenue fell 22% and EMEA also declined. Nike identified weakness in China and EMEA as primary factors in the overall revenue decrease. The company says its “Sport Offense” strategy is intended to build performance-business momentum, while acknowledging that Sportswear, Jordan Brand, and Greater China need more work.
In the October 1, 2026 release, CEO Elliott Hill said: “We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we’re taking deliberate actions to strengthen those businesses the right way for the long-term.” This is management’s description of the turnaround, not independent evidence that it will succeed.
Rank #3
- Mesh on upper adds breathability.
- Foam midsole delivers a soft ride.
- Flex grooves create a cushioned effect for your run.
- Waffle outsole is a made of a durable, flexible material that helps keep you on the move.
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Pace could improve efficiency, but savings are not guaranteed earnings
Nike expects its Pace operating-model transformation to generate approximately $2.5 billion in cumulative savings through FY2031, before expected charges and future reinvestment. The company estimates about $1.0 billion in pre-tax charges through FY2031, in addition to roughly $0.3 billion of FY2026 severance costs, and expects around $0.3 billion of charges in FY2027. These are management estimates; execution, implementation costs, and reinvestment can affect the eventual financial benefit.
Nike’s FY2026 release reported full-year revenue of $46.4 billion, flat as reported and down 2% currency-neutral, with net income down 3%. The same release reported Q4 gross margin of 49.2%, up 890 basis points; that increase included an approximately 900-basis-point benefit from the expected recovery of IEEPA tariffs. It should not be read as evidence of a similarly sized recurring improvement in underlying operations.
Rank #4
- Mesh on upper adds breathability.
- Foam midsole delivers a soft ride.
- Flex grooves create a cushioned effect for your run.
- Waffle outsole is a made of a durable, flexible material that helps keep you on the move.
- HM9594-001
Which company has the stronger margin profile?
On currently reports a substantially higher gross margin, and its management credited the latest quarterly improvement to operational efficiencies, freight, a higher DTC mix, premium positioning, and favorable foreign-exchange effects. The company said the quarter’s result came despite higher U.S. import duties and without tariff refunds. For the full year, it raised its gross-margin expectation to at least 65.0%.
Those figures do not make Nike and On directly comparable on overall profitability. Gross margin reflects product economics before many operating expenses; channel mix and business mix also differ. On’s adjusted EBITDA margin outlook and Nike’s adjusted diluted EPS outlook are different measures, so neither should be treated as a like-for-like profitability comparison.
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- The mesh upper offers a comfortable, breathable feel.
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- The outsole has an intuitive Nike design and flex grooves in the forefoot that create a comfortable and cushioned effect as you run.
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On is investing in marketing, retail, and selling as it expands. Those costs can weigh on operating results even while sales and gross margin grow. The key question is whether the company can sustain premium pricing and demand while scaling its channels, products, and operations.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What could weaken On’s growth case?
On’s challenge is to turn recent momentum into durable growth without diluting what supports its premium positioning. Its 2025 Form 20-F identifies risks involving brand resilience, strategy, innovation, competition, economic and political conditions, operations, distribution, and suppliers. For investors, practical signals to monitor include whether product launches maintain demand, whether the company can expand beyond footwear, and whether DTC-led growth remains healthy while it manages wholesale shipments and full-price discipline.
On founder and Co-CEO David Allemann said the company was “proving that a brand can achieve global scale without compromising its premium brand positioning.” CFO Frank Sluis said it would not compromise full-price integrity for volume in a promotional environment. Both are management statements of intent; the company’s ability to deliver on them remains an execution question.
Does stronger growth mean On is the better stock?
No—not by itself. The evidence supports On as the stronger near-term operating-growth story, while Nike is a turnaround case whose prospects depend on restoring sales momentum and executing its transformation. A stock’s expected return also depends on what investors pay, future earnings, risks, and shareholder distributions.
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A buy-versus-buy decision would require contemporaneous share prices, comparable valuation measures, forward earnings estimates, and assumptions about risk and returns. Those data are not established here, so growth alone cannot support a conclusion that either stock is the better value. On’s 2025 Form 20-F also notes its dual-class share structure and that it does not plan dividends; these are investor considerations, not measures of business growth.
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