It was conjectured, twenty years ago, the following result that would generalize the so-called rank rigidity theorem for homogeneous Euclidean submanifolds: let Mn, n≥2, be a full and irreducible homogeneous submanifold of the sphere SN-1⊂ ℝ N such that the normal holonomy group is not transitive (on the unit sphere of the normal space to the sphere). Then Mn must be an orbit of an irreducible s-representation (i.e. the isotropy representation of a semisimple Riemannian symmetric space). If n = 2, then the normal holonomy is always transitive, unless M is a homogeneous isoparametric hypersurface of the sphere (and so the conjecture is true in this case). We prove the conjecture when n = 3. In this case M3 must be either isoparametric or a V...