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Nike
(NYSE:NKE)
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Rating:49Neutral
Price Target:
$37.00
▼(-6.28% Downside)
Action:Reiterated
Date:10/03/26
The score is held down primarily by weakening financial performance (margin and cash-flow compression) and a clearly bearish technical setup (price below major moving averages with negative momentum). Valuation and dividend yield provide partial support, but the latest earnings guidance points to further near-term revenue and EBIT declines—especially with ongoing China and Sportswear/Jordan pressures—limiting the upside until operating trends stabilize.
Positive Factors
Performance portfolio growth
Broad-based growth across multiple sports categories indicates that product innovation and consumer demand remain meaningful competitive strengths. Continued gains in Running, Football, Training and other activities can diversify the portfolio and provide a durable foundation for recovery beyond lifestyle categories.
Negative Factors
Structural revenue and EBIT pressure
The outlook points to a prolonged operating reset rather than a single weak quarter. High-single-digit revenue contraction, fixed-cost deleverage and higher input costs can pressure earnings disproportionately, limiting reinvestment capacity until demand and product mix improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Performance portfolio growth
Broad-based growth across multiple sports categories indicates that product innovation and consumer demand remain meaningful competitive strengths. Continued gains in Running, Football, Training and other activities can diversify the portfolio and provide a durable foundation for recovery beyond lifestyle categories.
Read all positive factors
Nike Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Measures gross profit for each segment, showing how much money is left after production costs before operating expenses. Comparing gross profit across segments highlights which businesses are most profitable and how mix, pricing or cost of goods changes will affect overall margins.
Measures gross profit for each segment, showing how much money is left after production costs before operating expenses. Comparing gross profit across segments highlights which businesses are most profitable and how mix, pricing or cost of goods changes will affect overall margins.
Data provided by:
The Fly
The FlyNike (NKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.40B
Dividend Yield4.4%
Average Volume (3M)40.63M
Price to Earnings (P/E)17.8
Beta (1Y)0.95
Revenue Growth-1.36%
EPS Growth6.80%
CountryUS
Employees73,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)2.09
Shares Outstanding1,203,921,000
10 Day Avg. Volume26,553,221
30 Day Avg. Volume40,625,070
Financial Highlights & Ratios
PEG Ratio-6.78
Price to Book (P/B)4.58
Price to Sales (P/S)1.47
P/FCF Ratio31.18
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.32
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda13.29
Forecast
1Y Price Target
$36.58Price Target Upside-7.34% Downside
Rating ConsensusHold
Number of Analyst Covering36
EPS Forecast (FY)1.27
Revenue Forecast (FY)$42.85B
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,...
How the Company Makes Money
Nike primarily makes money by selling branded athletic products—especially footwear and apparel—through a mix of wholesale and direct-to-consumer (DTC) channels. (1) Wholesale revenue: Nike sells products in bulk to retail partners (e.g., sporting...
Nike Earnings Call Summary
Earnings Call Date:Oct 01, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 17, 2026
Earnings Call Sentiment Neutral
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.
Read all updates
Q1-2027 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
58
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.89B | 46.40B | 46.31B | 51.36B | 51.22B | 46.71B |
| Gross Profit | 19.77B | 19.91B | 19.79B | 22.89B | 22.29B | 21.48B |
| EBITDA | 4.56B | 4.54B | 4.98B | 7.80B | 7.34B | 7.78B |
| Net Income | 3.09B | 3.11B | 3.22B | 5.70B | 5.07B | 6.05B |
Balance Sheet | ||||||
| Total Assets | 37.79B | 38.41B | 36.58B | 38.11B | 37.53B | 40.32B |
| Cash, Cash Equivalents and Short-Term Investments | 8.37B | 9.03B | 9.15B | 11.58B | 10.68B | 13.00B |
| Total Debt | 11.07B | 11.03B | 11.02B | 11.95B | 12.14B | 12.63B |
| Total Liabilities | 22.57B | 23.55B | 23.37B | 23.68B | 23.53B | 25.04B |
| Stockholders Equity | 15.22B | 14.87B | 13.21B | 14.43B | 14.00B | 15.28B |
Cash Flow | ||||||
| Free Cash Flow | 2.10B | 2.18B | 3.27B | 6.62B | 4.87B | 4.43B |
| Operating Cash Flow | 2.78B | 2.87B | 3.70B | 7.43B | 5.84B | 5.19B |
| Investing Cash Flow | -621.00M | -488.00M | -275.00M | 894.00M | 564.00M | -1.52B |
| Financing Cash Flow | -2.31B | -2.29B | -5.82B | -5.89B | -7.45B | -4.84B |
Nike Technical Analysis
Neutral
39.48
Price Trends
37.07
Positive
39.76
Negative
46.02
Negative
Market Momentum
0.24
Negative
55.33
Neutral
83.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKE, the sentiment is Neutral. The current price of 39.48 is above the 20-day moving average (MA) of 35.88, above the 50-day MA of 37.07, and below the 200-day MA of 46.02, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 83.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NKE.
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.04B | 10.73 | 43.56% | ― | 6.30% | 11.78% | |
72 Outperform | $10.71B | 22.33 | 23.26% | ― | 29.34% | 222.74% | |
70 Outperform | $5.79B | 15.80 | 12.12% | ― | 19.55% | 19.15% | |
68 Neutral | $5.72B | 10.23 | 43.41% | ― | -2.03% | 205.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $55.40B | 17.85 | 21.24% | 4.40% | -1.36% | 6.80% | |
46 Neutral | $27.04M | -0.25 | -243.20% | 13.76% | -38.03% | 18.52% |
* Consumer Cyclical Sector Average
NKE
Nike
37.30
-29.10
-43.83%
CROX
Crocs
119.23
31.94
36.59%
DECK
Deckers Outdoor
81.09
-9.38
-10.37%
ONON
On Holding AG
32.51
-9.70
-22.98%
BIRD
Smartbird Inc
2.29
-3.54
-60.73%
BIRK
Birkenstock Holding plc
32.57
-9.84
-23.20%
Nike Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Nike Announces Q1 Results and Pace Restructuring Plan
Negative
Oct 1, 2026
On October 1, 2026, NIKE reported fiscal 2027 first quarter results for the period ended August 31, 2026, with revenues down 4 percent to $11.2 billion and NIKE Brand revenues down 4 percent, primarily due to weakness in Greater China and EMEA. De...
Business Operations and StrategyExecutive/Board Changes
Nike appoints Alexandre Arnault to expanded board
Positive
Sep 16, 2026
On September 15, 2026, NIKE, Inc. expanded its Board of Directors to twelve members and appointed Alexandre Arnault as a director, with his initial term running through the 2027 annual shareholders’ meeting. The move reflects NIKE’s br...
Business Operations and StrategyShareholder Meetings
Nike Shareholders Approve Expanded Employee Stock Purchase Plan
Positive
Sep 10, 2026
On July 15, 2026, Nike’s board adopted an amended and restated Employee Stock Purchase Plan, and shareholders approved it at the virtual annual meeting on September 8, 2026, including an increase of 16,000,000 authorized Class B shares for i...
Executive/Board ChangesRegulatory Filings and Compliance
Nike announces leadership changes in key finance roles
Neutral
Aug 10, 2026
On August 4, 2026, Nike, Inc. announced that Johanna Nielsen intends to resign as Vice President, Chief Accounting Officer and Corporate Controller, effective September 4, 2026, to pursue another opportunity, noting that her departure does not ste...
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.