Is On Holding AG Stock Halal?
On Holding AG · ONON · NYSE
All 2 halal screening authorities with a published position rate On Holding AG halal.
On Holding AG (ONON) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 1.4% of market cap and cash plus interest-bearing securities 10.0% — both inside the 30% AAOIFI thresholds. It is not held by Shariah-screened ETFs SPUS or HLAL. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-15
HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.
Do the halal screening authorities agree?
- HalalWallet (AAOIFI)· Halal
- Zoya· Halal
All 2 halal screening authorities with a published position rate On Holding AG halal.
Stances are normalized from each authority's own dated public position. Disagreement usually reflects a methodology or standard difference (ratio timing, market-cap vs total-assets denominator), not an error. For the fund screens (Wahed/HLAL, SP Funds/SPUS), only a confirmed holding that passed the fund's screen counts as a pass — a non-holding is left blank because absence can reflect index scope.
Is On Holding AG Stock Halal?
All 2 halal screening authorities with a published position rate On Holding AG halal. On Holding AG (ONON) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 1.4% of market cap and cash plus interest-bearing securities 10.0% — both inside the 30% AAOIFI thresholds. It is not held by Shariah-screened ETFs SPUS or HLAL. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
- Interest-bearing debt / market cap: 1.4% (< 30%) — Pass
- Cash + interest-bearing securities / market cap: 10.0% (< 30%) — Pass
- Impermissible income / total revenue: 1.0% (< 5%) — Pass
- Mainstream Shariah standards disagree on this company — see the cross-standard table below.
- Financial ratios sourced from filings as of 2026-03-31.
How we read the evidence
HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.
On Holding is one of the cleaner apparel names in the halal stock universe. The company sells running and lifestyle footwear and related apparel through wholesale, digital, and retail channels — a straightforward consumer-goods model with no conventional lending, insurance, or gambling activity in its core operations.
Financial ratios on our latest screen show low debt relative to market cap, modest cash holdings, and filing-verified interest income around 1% of revenue — well inside AAOIFI's 5% tolerance. Purification of dividends for that incidental interest is standard practice rather than a reason to avoid the stock.
Zoya publicly classifies ONON as Shariah-compliant as of June 2026. U.S. Shariah ETFs SPUS and HLAL did not list On Holding in the holdings schedules we verified; that reflects index scope (foreign mid-cap) more than an automatic compliance failure. Investors seeking ETF validation should check whether international Shariah funds cover Swiss-listed names.
Practical takeaway: business activity is permissible, ratios pass with margin, and retail screeners like Zoya agree — treat as halal on current data with routine purification and attention to the dated ratio table as the share price moves.
Business Activity Screen
On Holding AG (On Running) develops and sells athletic footwear, apparel, and accessories worldwide through wholesale, distributors, e-commerce, and its own stores. The Swiss company's annual reporting describes a single consumer athletic brand focused on running and lifestyle shoes — a permissible apparel/footwear business without conventional finance, insurance, or gambling segments.
Revenue is overwhelmingly from shoe and apparel sales. Zoya reports interest income about 1.0% of revenue for FY2025 — under the 5% AAOIFI threshold on our screen. No material alcohol, tobacco, or gaming revenue lines are disclosed.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 1.4% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 10.0% | < 30% | Pass |
| Impermissible income / total revenueInterest income $29.5M on $2.88B total revenue (On Holding AG FY2025 (fiscal year ended 2025-12-31, Form 10-K)) = 1% — under AAOIFI's 5% limit. | 1.0% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How On Holding AG screens across Shariah standards
The standards disagree on this company. It passes some Shariah screens and fails others — which is exactly why you may see a different answer in different apps. Our headline verdict uses AAOIFI, the strictest and most widely cited mainstream standard.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 1.4% | 10.0% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 1.4% | 10.0% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 4.8% | 34.4% | < 33.33% of total assets | Fail |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Other stocks where Shariah screeners disagree
These companies pass under some mainstream standards and fail under others — the same pattern as this verdict. That is why two apps can show different answers.
AbbVieABBV
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AirbnbABNB
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APAAPA
Fails AAOIFI market-cap · passes MSCI/FTSE (total assets)
AppLovinAPP
Passes market-cap screens · fails MSCI/FTSE (total assets)
Arista NetworksANET
Passes market-cap screens · fails MSCI/FTSE (total assets)
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Not held in SPUS as of 2026-06-15. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Not held in HLAL as of 2026-06-15. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Zoya
Rates ONON Shariah-compliant under its AAOIFI-based screen (checked June 2026); interest income ~1.03% of FY2025 revenue.
Source →
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorRelated guides
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The Final Step: Your Scholar Conversation
Major whether On Holding AG is halal decisions involve nuances that vary by scholarly opinion and personal circumstance — which is why HalalWallet is built as the research step, not the ruling. We do the homework on comparisons, structures, and oversight; a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor covers what no comparison site can — guidance specific to your situation. Bring your shortlist to that conversation so it starts at the decision, not the basics.
How to use this comparison: HalalWallet is an independent educational comparison platform — by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider — their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-07-01
- ONON latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- On Holding AG 20-F / annual reports (SEC EDGAR)
- Zoya — ONON Shariah compliance status
- SPUS Schedule of Investments (2026-02-28)
- HLAL holdings reference (2026-06-05)
- HalalWallet Methodology
- Editorial Policy
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- Halal verdict corpus (JSON)
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