Nike (NKE) AI Stock Analysis

Nike

(BMV:NKE)

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Positive Factors

Performance portfolio growthBroad-based growth across multiple sports categories indicates that Nike retains meaningful product relevance and consumer reach beyond its weaker lifestyle businesses. Continued gains in performance footwear and apparel can support a more balanced portfolio and provide a durable foundation for a multi-quarter recovery.

Negative Factors

High-single-digit revenue decline outlookThe outlook points to a prolonged contraction rather than a brief quarterly setback, with portfolio actions expected to pressure revenue into fiscal 2028. Greater EBIT declines imply operating deleverage and make it harder to sustain earnings while the business rebuilds demand and product momentum.

Nike (NKE) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 57.44B
Dividend Yield: 3.84%
Average Volume (3M): 4,207
Price to Earnings (P/E): 18.5
Beta (1Y): 0.41
Revenue Growth: -11.30%
EPS Growth: -4.16%
Country: Mexico
Employees: 73,000
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Footwear & Accessories

Nike Business Overview & Revenue Model

Company Description

NIKE, Inc., through its various subsidiaries, operates as a global enterprise focused on the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories for all ages and genders. Beyond its primary offerings, th...

Nike Earnings Call Summary

Earnings Call Date:Sep 30, 2026(Q1-2027)|% Change Since:12.38%|Next Earnings Date:Dec 16, 2026

Earnings Call SentimentNeutral

The call presented clear operational progress in the Performance portfolio, including broad-based sports growth, product innovation, improved gross margin, expense discipline, a strong balance sheet and a detailed productivity program. However, these positives were outweighed in near-term financial impact by the 4% reported revenue decline, significant Sportswear, Jordan Brand and Greater China weakness, expectations for a high single-digit fiscal 2027 revenue decline, further China deterioration and EBIT pressure. Management expressed confidence in the long-term strategy but acknowledged that the business remains in transition and that the turnaround will take time.

Positive Updates

Q1 Results In Line with Expectations

NIKE said first-quarter results were in line with expectations. Revenue was within the guided range, gross margin improved as expected, and costs were managed with discipline.

Negative Updates

Overall Revenue Declined

First-quarter revenue was $11.2 billion, down 4% on a reported basis and 5% on a currency-neutral basis. Earnings per share was $0.48, down 2% year over year.

Company Guidance

For fiscal ’27, NIKE currently expects revenues to decline in the high single-digit range, with actions creating pressure on reported revenues for the remainder of fiscal ’27 and into ’28; Q2 revenues face a headwind of approximately 400 basis points, EBIT is expected to decline by a greater percentage than revenue, and SG&A is expected to remain down year-over-year. Adjusted earnings per share is currently expected to be in the range of $1.15 to $1.35, excluding approximately $0.15 of impact from the Pace program. Pace is expected to deliver approximately $2.5 billion in savings, with implementation costs of approximately $1 billion over the program’s life, in addition to approximately $300 million of severance-related costs in fiscal ’26; the majority of savings are expected to be realized in fiscal years ’29 and ’30, with full realization continuing into fiscal year ’31. The fiscal ’27 guidance range assumes China gets worse from a revenue perspective for the balance of the year.

Nike Risk Analysis

Nike disclosed 39 risk factors in its most recent earnings report. Nike reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Nike Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:NKE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	78Outperform	$10.94B	10.85	43.56%	―	6.30%	11.78%
CROX	76Outperform	$6.88B	11.14	48.76%	―	0.70%	329.45%
ONON	75Outperform	$11.13B	23.22	23.26%	―	29.34%	222.74%
BIRK	66Neutral	$5.95B	16.21	12.12%	―	19.55%	19.15%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BIRD	45Neutral	$23.03M	-0.22	-243.20%	16.16%	-38.03%	18.52%

* Consumer Cyclical Sector Average

Performance Comparison

MX:NKE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:NKE	Nike Inc	725.97	-398.65	-35.45%
CROX	Crocs	150.52	69.36	85.46%
DECK	Deckers Outdoor	81.99	0.87	1.07%
ONON	On Holding Ag Class A	33.78	-2.68	-7.35%
BIRD	Smartbird Inc.	1.95	-5.57	-74.07%
BIRK	Birkenstock Holding plc	33.43	-5.93	-15.07%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Nike AI Stock Analysis