Breakfast News: On's Record Quarter
November 12, 2025
| Tuesday's Markets |
|---|
| S&P 500 6,847 (+0.21%) |
| Nasdaq 23,468 (-0.25%) |
| Dow 47,928 (+1.18%) |
| Bitcoin $102,628 (-2.76%) |
1. On Holding Storms Ahead
First brought to the Rule Breakers scorecard in February last year, On Holding (ONON +0.63%) reported record sales and profits in the third quarter this morning, with sales up 24.9% year over year – in Swiss Francs – and up 34.5% at constant currency. Adjusted EBITDA rose 49.8% and earnings per share quadrupled, with net income margin up to 15% from 4.8% in the same quarter last year. The stock popped 9% in pre-market trading following the announcement.
- "The world's most premium global sportswear brand": CEO Martin Hoffmann spoke of the company's growing global business, as the company raised its full-year guidance to 34% revenue growth year over year, with a gross margin around 62.5%.
- "Cash flow weakened as receivables grew and inventories fell": Writing at Q2 time, TMF chief investment officer Andy Cross noted cash as a yellow flag – and cash flow declined in the first nine months. But he added "On is clearly winning in the very competitive sneaker market."
2. AMD Aims to Storm AI Chip Market
Lisa Su, CEO of Stock Advisor recommendation Advanced Micro Devices (AMD 2.75%), predicted revenue growing at an annual rate of 35% over the next three to five years. Speaking at Tuesday's analyst day – a week after AMD reported a 36% rise in Q3 revenue – she pointed to the AI data center market reaching $1 trillion by 2030.
- "There's just insatiable demand": Su spoke of AI pushing data center growth – with Nvidia's (NVDA 3.06%) GPUs thought to power around 90% of the market. But she said seven of the 10 biggest AI companies now also have AMD's Instinct GPUs.
- "Tens of billions of dollars of revenue": Su also told investors AMD's upcoming MI450 chips could help drive a "double-digit" share of the data center chip market. The AMD share price perked up 6% in overnight trading.
3. Key Earnings to Watch on Wednesday
Cisco Systems (CSCO 0.53%) will post Q1 results after today's closing bell, after achieving AI orders of over $2 billion in the previous fiscal year. The company expects revenue between $14.65 billion and $14.85 billion this quarter, with earnings per share of $0.97 to $0.99.
- Superscore of 63 on our Hidden Gems Primary database: Ibotta (IBTA +9.41%) stock climbed 9% yesterday, ahead of Q3 results due after close today. Wall Street forecasts a 17% fall in revenue year over year, following revenue and earnings misses in Q2.
- Stock down 28% year to date: Can investigative software developer Cellebrite (CLBT +0.58%) build on Q2 revenue and earnings beats? We'll know this afternoon, as analysts expect a 15% year-over-year revenue rise for Q3 – though there's an earnings dip on the cards.
4. Your Take
AMD is up around 50% since the start of October following its collaboration with OpenAI, and beating the S&P 500 by 4% since the January 2024 recommendation in Stock Advisor.
What other stocks have shot up considerably in the last month or so, which you are still convinced can easily beat the market over five years from now, and why? Discuss with friends and family, or become a member to hear what your fellow Fools are saying.