NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the NIKE, Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks; and operates digital platforms, including fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was founded in 1964 and is headquartered in Beaverton, Oregon.

Nike appears to be a high-quality but no longer cheap business: operating profitability and return on capital remain strong, however the market valuation multiples are noticeably inflated relative to the industry. P/E of 27.19 is 56.4% above the median, P/S of 1.33 is 103.1% above, P/B of 4.16 is 147.6% above, and P/FCF of 58.89 is more than 4.6x the industry median, which limits re-rating potential. At the same time, the multiple trend has generally improved from the peak levels at the beginning of the period, but they still remain high for a company with moderate earnings growth. The balance sheet is a strength: debt/equity of 0.40 is below the industry median, current ratio of 1.96 and quick ratio of 1.36 are comfortable, and cash on hand of about $9.0 billion supports financial stability. Profitability also looks solid: ROE of 22.0%, ROA of 8.26%, and ROI of 14.71% are above industry benchmarks, while net profit margin of 6.70% and operating margin of 8.18% show that the business remains profitable. However, gross margin has declined from 43.82% to 40.81%, indicating pressure on gross profitability. Absolute profit and operating income figures have recovered noticeably compared with weaker quarters, but TTM EPS of 0.20 and especially forecast EPS of 0.11 look weak relative to the industry and do not support the high valuation. Revenue remains around $11 billion and is broadly stable, but without a clear acceleration in growth that could justify a premium valuation. Dividend yield of 1.08% has improved, but it remains more of an added benefit than a re-rating driver. Overall, the fundamentals point to a stable, profitable company with a strong balance sheet, but with limited upside due to an expensive valuation and not particularly strong earnings momentum. For an investor, this is more a story of quality and stability than of clearly undervalued growth, so a moderate conservative downward adjustment to the forecast is warranted.

Nike, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, незначительно вырос. Рынок не поддерживает быков.

Weak index, slightly up. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Nike has a strong balance sheet and good profitability, but its valuation by P/E, P/S, P/B, and P/FCF remains high, while EPS and profit outlook look weak.

Key Points
Coca-Cola's streak of 64 straight annual dividend increases has survived recessions, inflation spikes, and shifting consumer tastes.
Because Nike shares trade 79% below their peak, the dividend yield is more than four times higher than that of the S&P 500 index.
The better dividend stock to buy in October will depend on how much you value stable fundamentals.
According to S&P Global's Global Market Intelligence, more than 80% of the companies in the S&P 500 index pay a dividend. Because the opportunity set is large, income-focused investing is a popular strategy among the retail crowd.
It makes sense why. Investing in growth stocks means betting on future earnings that may or may not materialize. Value investing, on the other hand, relies on the market eventually agreeing with your assessment of a particular bargain opportunity. There is uncertainty with these strategies.
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Dividends provide a cash inflow to investors in up and down markets. And if you reinvest these distributions, it can boost the total return.
But it's important to understand that not all dividends are created equal. It all depends on the business that's backing them. Two consumer stocks help explain this line of thinking.
Coca-Cola (NYSE: KO) shares pay a dividend yield of 2.3%. Nike (NYSE: NKE) stock pays a dividend yield of 4.4%. Here's why only one of these dividend stocks is a better buy in October.
Both companies have remarkable dividend streaks
It's a good idea to first establish why these companies are elite at returning capital to shareholders. They both have incredible dividend streaks going right now.
Coca-Cola has raised its dividend for 64 consecutive years. That makes it a Dividend King, a business with at least 50 straight years of dividend increases.
That streak says nothing of the magnitude of the hikes. In the past decade, the beverage stock's dividend has grown by 51%.
Nike has raised its dividend for 24 straight years. That's a shorter streak than Coca-Cola's, but still an impressive one. If history is any indication, the sportswear company will raise the payout later this year.
Nike's dividend growth has been better than Coca-Cola's. The former's payouts have risen by 128% over the last 10 years.
It depends on what you care about most
When choosing which of these two stocks is the better buy in October, investors need to take some critical information into account. It comes down to business quality.
Both Coca-Cola and Nike possess wide economic moats. The soft drink giant has one of the strongest brands on Earth that drives customer loyalty and pricing power. The sportswear leader, which has admittedly struggled in recent years, has also been a globally recognized brand for decades.
If you're primarily chasing the highest yield, Nike is clearly the better option. For a $100 investment, its dividend payout is nearly double that of Coca-Cola.
The trade-off is that Nike's fundamentals have proven significantly more volatile than those of the beverage king. This is reflected in Nike's stock performance, as it trades 79% off its peak from November 2021.
Nike is in the middle of a major turnaround effort as it aims to win back consumers. Sales have been under pressure and are set to decline this fiscal year, according to management. Persistent inflationary pressures in the U.S. don't help. The intensely competitive nature of the industry also makes things extremely difficult, as customers direct their attention and money toward newer footwear purveyors.
If safety is your main concern, go with Coca-Cola. Its dividend streak has survived recessions, inflation spikes, and shifting consumer tastes. That durability comes from the steady nature of the business itself. This is a boring operation that doesn't change much over time. And demand has proven to be stable regardless of economic conditions.
Coca-Cola's sizable profits and free cash flow enable shareholder payouts. It posted a fantastic operating margin of 34.9% in the second quarter (ended July 3), a figure up slightly from the year-ago period. That financial security blanket forces me to lean toward Coca-Cola.
But whichever stock you pick, make sure to weigh the pros and cons.
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Coca-Cola Yields 2.3% and Nike Yields 4.4%. Here's Why Only 1 of These High-Yield Dividend Stocks Is a Buy This October.

(RTTNews) - Nike (NKE) is expanding its presence in India with plans for a new global campus in Bengaluru as the sportswear giant looks to revive growth under CEO Elliott Hill and tap into one of the world's fastest-growing consumer markets.
The campus, expected to open within the next few years, will house corporate roles spanning Nike, Jordan Brand and Converse. Hill described the project as a long-term investment, citing India's importance as both a growth market and manufacturing hub.
The expansion comes as Nike struggles in Greater China, where fiscal first-quarter revenue fell 26 percent. The company said China remains a long-term priority and stressed that its India investment is not intended to replace its focus on the market.
Nike is also restructuring operations under its Pace strategy, including workforce reductions and supply-chain changes, targeting about $2.5 billion in savings through fiscal 2031. India's growing consumer base and rising participation in sports offer Nike another avenue for long-term international growth.

Nike Bets On India With New Bengaluru Campus As It Pushes Turnaround

For Immediate Release
Chicago, IL – October 12, 2026 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes JPMorgan JPM, Citigroup C, Pepsi PEP, Micron MU and Nike NKE.
Estimates Keep Rising as Q3 Earnings Session Takes Center Stage
The Q3 earnings season takes center stage this week when JPMorgan, Citigroup and others report September-quarter results before the market's open on Tuesday, October 13th. This week's reporting docket, comprising 29 S&P 500 members, also includes companies outside the Finance sector, with bellwethers like Johnson & Johnson, Taiwan Semiconductor Company, and UnitedHealth also reporting quarterly results.
The expectation is that S&P 500 earnings will increase by +24.3% from the same period last year, the 8th straight quarter of double-digit earnings growth for the index.
The Tech sector remains a major growth contributor, but momentum is broad-based, with 15 of the 16 Zacks sectors on track for positive earnings growth in Q3. Importantly, the revisions trend remains positive and broad-based, highlighting a steadily improving outlook.
As noted earlier, the revisions trend has been positive, sustaining the favorable trend in place for almost a year. Estimates for Q3 increased after the quarter got underway, and we are seeing a similar trend at play for 2026 Q4 estimates.
This positive revision behavior is not new; it extends a tailwind that has been building for nearly a year. The positive revisions were at first concentrated in Technology and, more recently, Energy following Middle East supply disruptions. However, for 2026 Q4 and what we saw in Q3, constructive estimate revisions have broadened significantly, rising across 7 of the 16 Zacks sectors—including Aerospace, Construction, Industrials, Finance, and Transportation alongside Tech and Energy.
On the negative side, Q4 estimates remain under pressure for these 8 sectors – Conglomerates, Autos, Basic Materials, Consumer Staples, Consumer Discretionary, Medical, Business Services, and Retail.
It is important to note that estimates for full-year 2027 have also been similarly trending higher, which we show a little later in this note.
Sector Focus: Broad-Based Strength
Q3 earnings are expected to be above the year-earlier level for 15 of the 16 Zacks sectors, with 6 sectors expected to enjoy double-digit growth. The multi-industry Conglomerates sector is the only one expected to have lower earnings in Q3 relative to the same period last year (earnings decline of –35.1%).
The 6 sectors expected to enjoy double-digit earnings growth in Q3 are Aerospace (up +159.5%), Energy (+117.1%), Tech (+43.3%), Basic Materials (+29.7%), Transportation (+10.9%) and Industrial Products (+13.3%).
Q3 earnings growth for the S&P 500 index drops to +20.1% from +24.3% once the Energy sector's contribution is excluded from the index. Excluding the Tech sector, Q3 earnings growth for the rest of the index drops to +14.2%.
For the Finance sector, which dominates the reporting docket this week, Q3 earnings are expected to be up +3.3% from the same period last year on +6.3% higher revenues.
The Banks and Brokerages industry, which includes JPMorgan, Citigroup, Goldman Sachs, and others, is expected to post +2.5% earnings growth in Q3 on +9.7% higher revenues.
The sharp rise in long-term Treasury yields during Q3 has been an overhang on bank and broker stocks lately. Rising yields don't just cause paper losses on balance sheet holdings of available-for-sale bonds, as they also pressure net interest margins through surging deposit betas and have negative effects on credit demand and quality. The unfavorable interest rate backdrop has clouded the outlook for deal flow, with a number of high-profile IPOs getting delayed as a result.
Q3 Earnings Season Scorecard
The Q3 earnings season is not officially getting underway with this week's results from JPMorgan, Citigroup, and others. Officially, the Q3 reporting cycle began with recent results from Pepsi, Micron, Nike, and others.
The Nike, Micron, and other reports were for these companies' fiscal quarters ending in August, which count as part of the September-quarter tally. Including the Nike and Micron reports, we now have such Q3 results from 19 S&P 500 members. With another 29 index members reporting results this week, including the aforementioned banks, we will have seen results from 48 S&P 500 members by the end of this week.
Total Q3 earnings for the 19 S&P 500 members that have reported results already are up +150.9% from the same period last year on +27% higher revenues, with 78.9% beating EPS estimates and 73.7% beating revenue estimates.
The very strong earnings and revenue growth pace for this group of 19 S&P 500 members is mostly due to Micron, whose Q3 earnings increased +1075.7% from the year-earlier level. Excluding the Micron contribution, Q3 earnings for the remaining 18 index members that have reported would be up +9.4%.
The Earnings Big Picture
As we noted earlier, estimates for full-year 2027areexperiencing the same positive revisions trend that we noted earlier in the context of 2026 Q4.
For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Banks Under Pressure from Spiking Yields Ahead of Q3 Results
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NIKE, Inc. (NKE) : Free Stock Analysis Report

JPMorgan, Citigroup, Pepsi, Micron and Nike are part of Zacks Earnings Preview

The NASDAQ 100 After Hours Indicator is down -10.55 to 30,797.38. The total After hours volume is currently 150,344,592 shares traded.
The following are the most active stocks for the after hours session:
Grab Holdings Limited (GRAB) is +0.0102 at $3.09, with 10,888,982 shares traded. As reported by Zacks, the current mean recommendation for GRAB is in the "buy range".
Warner Bros. Discovery, Inc. (WBD) is +0.02 at $30.96, with 7,829,526 shares traded. WBD's current last sale is 99.87% of the target price of $31.
Nike, Inc. (NKE) is -0.0398 at $33.83, with 6,758,463 shares traded. NKE's current last sale is 80.55% of the target price of $42.
Walmart Inc. (WMT) is +0.01 at $104.27, with 5,864,662 shares traded. As reported by Zacks, the current mean recommendation for WMT is in the "buy range".
Ford Motor Company (F) is +0.0096 at $12.11, with 4,668,489 shares traded. F's current last sale is 80.73% of the target price of $15.
NVIDIA Corporation (NVDA) is +0.08 at $234.03, with 4,663,123 shares traded. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
NextEra Energy, Inc. (NEE) is +0.0947 at $76.92, with 4,241,897 shares traded. NEE's current last sale is 77.31% of the target price of $99.5.
GameStop Corporation (GME) is +0.0471 at $24.75, with 3,838,220 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is +0.06 at $749.64, with 3,711,406 shares traded. This represents a 34.92% increase from its 52 Week Low.
Exelon Corporation (EXC) is unchanged at $40.73, with 3,282,123 shares traded., following a 52-week high recorded in today's regular session.
Pfizer, Inc. (PFE) is -0.01 at $27.79, with 3,064,153 shares traded. PFE's current last sale is 99.25% of the target price of $28.
Southern Company (The) (SO) is unchanged at $83.72, with 2,453,925 shares traded., following a 52-week high recorded in today's regular session.

After Hours Most Active for Oct 2, 2026 : GRAB, WBD, NKE, WMT, F, NVDA, NEE, GME, QQQ, EXC, PFE, SO

NIKE, Inc. NKE reported first-quarter fiscal 2027 earnings of 48 cents per share, down 2% year over year. The figure beat the Zacks Consensus Estimate of 43 cents by 11.6%. Improved gross margin and disciplined expense management supported the bottom line.
Revenues fell 4.3% year over year to $11.2 billion and missed the Zacks Consensus Estimate of $11.4 billion by 1.6%. NIKE performance grew in the high single digits, but weakness in Sportswear, Jordan Brand and Greater China remained a drag.
NIKE’s shares have decreased more than 8% in after-hours trading session yesterday. This Zacks Rank #4 (Sell) stock has dipped 19.4% in the past three months versus the industry’s 17.8% decline.
NKE's Channel Mix Remains Under Pressure
NIKE Brand revenues totaled $10.95 billion, down 4% on both reported and currency-neutral bases. Wholesale revenues slipped 1% to $6.8 billion, with declines in Greater China were partly offset by growth in North America. Our model anticipates NIKE Brand revenues to be $11.1 billion.
NIKE Direct revenues declined 8% to $4.14 billion, and fell 9% on a currency-neutral basis. NIKE Brand Digital sales fell 13%, while NIKE-owned store revenues decreased 5%. Converse revenues dropped 28% to $263 million as all territories posted declines.
NIKE, Inc. Price, Consensus and EPS Surprise
NIKE's Geographic Trends Stay Mixed
North America revenues increased 2% to $5.1 billion. The region benefited from performance products, with management highlighting Running, Global Football and Basketball as key contributors. We expect North America revenues to increase 2.2% year over year to $5.1 billion for the fiscal first quarter.
EMEA revenues fell 5% to $3.2 billion, while Greater China revenues declined 22% on a reported basis to $1.2 billion and 26% on a currency-neutral basis. Asia Pacific & Latin America revenues decreased 2% to $1.5 billion but were flat excluding currency changes. Our model anticipates revenues to decline 4.4% year over year to $3.2 billion for EMEA, 16.4% to $1.3 billion for Greater China and 1.7% to $1.5 billion for Asia Pacific & Latin America.
NKE's Product Portfolio Shows Diverging Momentum
NIKE Brand Footwear revenues declined 6% to $7 billion, while apparel revenues rose 2% to $3.4 billion. Equipment revenues fell 3% to $611 million.
Management said NIKE Sportswear, which represented just under half of quarterly revenues, declined in the low double digits. Jordan Brand accounted for 13% of the company’s global business and fell in the mid-teens, while the Performance portfolio benefited from double-digit growth in Running, Global Football, Tennis and Golf.
NIKE's Margin and Cost Trends Improve
Gross margin expanded 60 basis points year over year to 42.8%, mainly on lower warehousing and logistics costs. Management also cited supply-chain cost actions and foreign-exchange tailwinds, partly offset by higher discounts and channel mix pressure. We had expected a 40-basis-point expansion in gross margin.
Selling and administrative expenses declined 3% to $3.9 billion. Demand creation expense rose 5% to $1.3 billion on increased brand marketing tied to key sports events. Operating overhead expense fell 6% to $2.7 billion on lower wage-related and other administrative costs.
NKE's Pace Program Targets Structural Savings
NIKE introduced Pace, an operating-model transformation designed to scale its Sport Offense, modernize the supply chain and streamline the organization. The company also plans to establish a new campus in Bengaluru, India. As part of Pace, it intends to organize its operations across three geographies.
Pace is expected to generate about $2.5 billion in cumulative savings through fiscal 2031. NIKE expects roughly $1 billion of pre-tax charges over the program's life. It expects to achieve about $0.3 billion savings in fiscal 2027.
NKE's Balance Sheet Supports Ongoing Investment
Inventories totaled $7.8 billion as of quarter-end, down 3% year over year. Cash and equivalents amounted to $6.9 billion, while short-term investments totaled $1.5 billion.
NIKE returned about $610 million to shareholders through dividends during the quarter, up 3% from the prior-year period’s level. Management said the dividend remains a significant capital-allocation priority as the company funds its portfolio and operating-model initiatives.
NIKE's Fiscal 2027 Outlook Signals More Pressure
For fiscal 2027, revenues are expected to decline in the high-single-digit range. Management expects actions to reduce supply in Sportswear, Jordan Brand and Greater China to weigh on revenues through the rest of the current fiscal year and into fiscal 2028.
Adjusted earnings per share are projected to be in the band of $1.15-$1.35, excluding about 15 cents of Pace-related restructuring impact in fiscal 2027. EBIT is expected to decrease by a higher percentage than revenues, while SG&A is projected to be down year over year.
Key Picks in the Consumer Discretionary Space
Duluth Holdings Inc. DLTH, which deals in casual wear, workwear and accessories for men and women, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Duluth Holdings delivered a trailing four-quarter earnings surprise of 122.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates a rise of 18.6% from the year-ago reported number.
Columbia Sportswear COLM, which engages in marketing and distribution of outdoor and active lifestyle apparel, footwear and accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 1.9% from the year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 36%, on average.
Gildan Activewear Inc. GIL, which is a manufacturer and marketer of premium quality branded basic activewear, currently carries a Zacks Rank #2.
GIL delivered a trailing four-quarter earnings surprise of 2.5%, on average. The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales indicates growth of 66.3% from the year-ago recorded number.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

NIKE Q1 Earnings Beat on Margin Gain, Stock Falls on Revenue Miss

Key Points
Nike is rapidly losing relevance in the global footwear industry, and this is taking a significant toll on its stock performance.
The company is aiming to turn things around by streamlining the business and leaning into automation.
A $1,000 investment made today is likely to be worth about the same or less by 2030.
On Sept. 20, Real Madrid superstar Kylian Mbappe taped over the Nike (NYSE: NKE) swoosh on his Superfly cleats during a match against Atlético Madrid. Two days earlier, the French soccer legend had severed his multidecade sponsorship deal with the shoe giant in favor of the Swiss sportswear brand On, which is expanding into the soccer market.
This situation exemplifies the perfect storm of fading relevance and rising competition Nike now faces. These challenges have helped send its stock price down by 76% over the last five years. But what might come next for Nike, and what might a $1,000 investment made today be worth by the end of the decade?
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What went wrong for Nike?
Nike has been at the top of the global athletic apparel industry for decades, and despite the challenges of staying trendy and relevant in a fickle marketplace, it has held its position thanks to its production quality, innovative designs, and high-profile athlete sponsorships. The best example is the long-term deal it made with basketball superstar Michael Jordan, who helped Nike create the Air Jordan sneaker brand, a commercial slam dunk now firmly cemented in global pop culture.
Over time, the company built what appeared to be an insurmountable economic moat against competition. Because Nike had the most money, it was able to sign sponsorship deals with the most popular athletes at the peaks of their careers, boosting its brand profile and allowing its shoes to dominate shelf space at brick-and-mortar retailers. However, following the COVID-19 lockdowns, Nike's management made a critical mistake.
In 2021, the company announced it was pivoting its focus to direct-to-consumer sales, backing away from its long-established relationships with traditional retailers in favor of selling through its own website and stores. The idea was to boost margins and build closer relationships with its customers. But while this sounded good in theory, it ended up backfiring as rivals like On, Hoka (owned by Deckers Outdoor), and New Balance flowed into the retail shelf space that Nike had vacated.
China is dragging on sales
Nike's fiscal fourth-quarter earnings show that the recovery it's hoping for has not yet materialized. Revenue dropped 1% year over year to $11 billion, driven by a 7% slump in direct-to-customer sales (from the Nike website and branded stores) to $4.1 billion.
Much of the weakness was concentrated in China, where sales dropped by 12%. The "good" news is that this challenge isn't limited to Nike. Other Western brands, ranging from automakers to electronics, are facing similar headwinds as Chinese consumers gravitate toward domestically produced alternatives.
Over the long term, investors should probably deprioritize Nike's Chinese market and focus on North America, where it has the greatest chance for recovery. In that region, sales rose 3% to $4.8 billion.
Nike is working hard to pull off a turnaround. Over the last few years, management has aggressively focused on streamlining the business through a variety of strategies, which include layoffs and greater use of automation. Gross margins jumped from 40.3% in the prior-year period to 49.2%, representing a small glimmer of hope in an otherwise lackluster business trajectory.
What could a $1,000 position be worth by 2030?
The biggest clue about how Nike might perform over the next few years comes from its valuation. Despite many consecutive years of declines, the stock is still not particularly cheap. In fact, its forward price-to-earnings (P/E) multiple of 21 is slightly higher than the S&P 500's average of 19.9.
With its brand relevance rapidly fading and its Chinese business shrinking faster than it can grow in its other global markets, Nike would be lucky to see any stock price gains at all over the next four years. In light of all that, a $1,000 investment made today will probably still be worth about $1,000 or less by 2030.
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Prediction: Here's What $1,000 Invested in Nike Stock Could Be Worth by 2030

Key Points
Nike’s stock looks battered, but its brand, balance sheet, and performance business still give the turnaround a foundation.
Wall Street sees plenty of near-term problems, while long-term investors can afford to look beyond the next few quarters.
Nike has been through painful downturns before, and its ability to regain momentum could matter more than today’s gloomy headlines.
When you look at Nike's (NYSE: NKE) stock chart right now, it is hard not to wince. It seems like it's pretty popular for social media and financial analysts alike to pile on Nike -- and rightly so. Shares are down roughly 48% over the past year and more than 40% year to date, with the price sitting near levels last seen roughly a decade ago.
Bank of America (NYSE: BAC), JPMorgan (NYSE: JPM), and others are cutting ratings and jumping in on the negative price targets. If you stop there, the story looks bleak. When I pull back and look at Nike's history, though, I see a company that has lived through worse cycles and still managed to reward patient shareholders. Here's why this time might be different.
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What the downgrades are saying
Wall Street's concerns are not made up. Nike has guided to near-term revenue declines, including a 2% to 4% drop in the current quarter and low-single-digit growth for the rest of fiscal 2026, with China sales expected to fall roughly 20% in the quarter. JPMorgan moved the stock to Neutral, then Underweight, warning that the company's "Win Now" initiatives could squeeze margins before they bear fruit, according to CNBC.
More recently, Bank of America went further. Analyst Lorraine Hutchinson cut Nike to Underperform and slashed her price target to $30, now expecting negative sales growth through fiscal 2027 and pushing any real top‑line recovery into fiscal 2028.
What history says about Nike, and why I think the business can still turn
Nike's current drawdown looks scary in isolation, but this is not the first time the stock has gone through a multi‑year slump. The company's long‑term data shows that Nike fell roughly 30% in 2015-2016, dropped again in 2022, and then slid nearly 30% in 2024. Each of those periods probably felt like the end of a growth story at the time, but each eventually gave way to new highs as the company cleaned up inventory and leaned into new categories.
None of this will happen again if Nike just sits still. Management has already acknowledged that the turnaround under Elliott Hill is slower and narrower than hoped. Analysts at RBC and others have pushed the company to accelerate inventory cleanup, regain share in key categories like running and women's apparel, and reignite its direct‑to‑consumer business, according to CNBC. Those are the right places to start.
The core of the bull case is simple. Nike still owns one of the most recognizable brands in the world, has deep relationships with athletes and digital platforms, and is still spending heavily on product and marketing even as it trims bloated lines. People may move between competitors or favor different silhouettes, but the world-famous brand keeps showing up on fields, courts, and city streets. When demand normalizes and the company's newer shoes and apparel get more traction, that brand power can translate back into revenue growth faster than many models assume. In short, Nike is too popular to keep dipping like this.
On top of that, the company still has roughly $9 billion in cash and short-term investments and continues to return cash to shareholders through its dividend. Nike Running is also a standout for the company, delivering five straight quarters of double-digit growth. That momentum makes me think that Nike is regaining traction in the performance categories where its brand has historically been strongest.
Why I think analysts are missing the bigger picture
To me, the bigger picture is that Nike is a cyclical growth story wrapped around a durable franchise. Analysts are right to flag that the next few quarters will be messy, with China's weakness, inventory overhang, and lifestyle fatigue. They are also mostly building models over one or two years, while I think Nike is a decade-long hold.
If you believe that people will still pay for performance shoes, sportswear, and global lifestyle brands in 2030, then buying Nike after a 40%-plus slide, when the consensus already assumes trouble, looks more like a long‑term opportunity than a permanent warning sign. I would rather buy the stock through a late‑cycle clean‑up while the business works through its issues than chase it after everyone decides the comeback is obvious.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
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Nike Is Down Nearly 50%, and Wall Street Analysts Keep Downgrading It. Here's Why History Says They're Missing the Bigger Picture.

Key Points
The brand’s reputation has suffered due to substandard product innovation, leading Nike's fiscal 2026 revenue to be 9% below the total from three years ago.
Although the stock can be bought at a historically cheap price-to-earnings ratio, investors shouldn’t take on the risk of owning a struggling company.
Nike (NYSE: NKE) might endorse some of the world's top athletes who are known for winning. However, the business has been on a dreadful losing streak. Shares currently trade 80% off their peak (as of Sept. 25), and they're at a roughly 13-year low.
What's wrong with this consumer discretionary stock?
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From a financial perspective, Nike is stumbling. Its fiscal 2026 (ended May 31) sales totaled $46.4 billion. This marked a 9% decline from exactly three years ago. And the consensus view is that revenue will fall in fiscal 2027.
Management is in the middle of a major turnaround effort that is aiming to reverse some of the shortfalls of the prior leadership team. Current CEO Elliott Hill said progress is taking longer than expected.
The combination of pressured sales, promotional activity, and turnaround investments have resulted in a crushed bottom line. Profit margins have come down notably in recent years.
Nike has had a difficult time rebalancing its distribution strategy to find the right mix between third-party retailers and its own channels. Product innovation has suffered, with a lack of newness that the brand has been known for. Demand in China has weakened considerably. And competition is intense, diverting consumer attention and wallet share away from Nike.
Shares trade at a price-to-earnings (P/E) ratio that is close to a 17-year low. Investors might find it appealing to add this industry-leading company to their portfolios. But until the fundamentals dramatically improve, it's smart to avoid Nike.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

What's Wrong With Nike Stock?

Key Points
Analysts are lowering their price targets ahead of Nike's earnings report Thursday.
Nike is also set to launch Caitlin Clark's signature shoe this week.
If the Caitlin 1 is well-received, it could help drive Nike's long-awaited comeback.
Nike's (NYSE:NKE) running business may be on the rebound, but the sportswear giant is definitely limping into its first-quarter earnings report, due out on Thursday.
The stock is trading around decade lows heading into the big reveal, and Wall Street is lowering its expectations for a comeback. Last Friday, Bank of America downgraded the stock to underperform and lowered its price target from $47 to $30 due to downside risks to earnings over the next two years. Three other analysts slashed their price targets on the stock on Monday as well, reflecting Nike's decline over the last few months as hopes for a turnaround get pushed further out.
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Nike told investors that gross margin should begin to inflect in the first quarter after years of challenges, as the company moves past tariffs and benefits from streamlining its inventory, but it's clear the broader industry is struggling. Lululemon just posted dismal results in its earnings report earlier this month, and Deckers and On Holdings are trading down significantly from recent highs on slowing growth as well.
Consumers have been hit hard by inflation and are pulling back on spending in some discretionary categories like apparel and footwear. Additionally, China has become a challenging market for global brands like the ones above. Those issues will only make it harder for Nike to deliver a recovery even if it executes well.
Analysts are expecting the company to report a 3.3% decline in revenue to $11.33 billion and for earnings per share to decline from $0.49 to $0.44.
That arguably creates a low bar for the company to overcome, but it also shows that the business is still declining.
However, there's another Nike event this week that could be the catalyst long-term investors are looking for.
The Caitlin 1. Image source: Nike.
Caitlin Clark's signature shoe is finally dropping
After years of waiting, Nike is finally releasing Caitlin Clark's first signature shoe.
Clark has brought a new audience to women's basketball and the WNBA, and along the way, has reached a degree of fame that arguably no other women's athlete in a team sport has before her.
Nike won the battle to sign Clark, but has done relatively little to market her since, squandering the buzz she brought with her from college to the WNBA.
However, Clark's shoe is now set to be released on Thursday, the same day as the earnings report, and initial demand could say a lot about Nike's ability to leverage star power and to build a new franchise. The moment seems even more important after Nike lost French soccer star Kylian Mbappe to On earlier this month.
The shoe features interlocking Cs, a personal flourish reminiscent of the "Jumpman" Air Jordan logo, and Nike said the shoe is built "for the speed, range an unpredictability of her game." According to Clark's direction, the shoe achieves a quicker first step, faster step-back, and a faster shot release.
The sneaker release will include an 18-piece apparel collection featuring hoodies, jackets, and t-shirts. Nike is also debuting its new Opticast innovation, a specially design upper part of the shoe that supports lateral quickness.
The Caitlin 1 will retail for $140.
Image source: Nike.
Could the Caitlin 1 spark a turnaround for Nike?
Nike's sports empire is vast and sprawling, and there's more than one area that needs improvement.
However, the Caitlin Clark partnership could be uniquely beneficial for Nike. Nike already dominates basketball, giving it much-needed credibility, and the Clark partnership comes up at a time when women's sports are ascendant.
For Nike, Clark has the potential to do for the women's side of the business what Jordan did for the men's side, and her brand is sure to have crossover appeal with men as well.
Look out for Nike's commentary on the shoe launch when it reports earnings. We may have to wait a few weeks to get any kind of numbers on the launch, but some positive news could be just what Nike needs to get going in the right direction.
If the business ever does turn around, there's a lot of upside potential for this blue chip stock, now down 80% from its peak.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 28, 2026.
Bank of America is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in Bank of America, Lululemon Athletica Inc., and Nike. The Motley Fool has positions in and recommends Deckers Outdoor, Nike, and On Holding. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.

Nike Faces 2 Major Tests This Week. Earnings Isn't the One To Watch

NIKE, Inc. NKE is relying on product innovation and a stronger focus on sport to rebuild momentum after a challenging period for its Sportswear business. In fiscal 2026, NIKE Brand footwear revenues were essentially flat at $29.5 billion on a reported basis and declined 2% on a currency-neutral basis. The weakness was more pronounced in Greater China, where footwear sales fell 13% on a reported basis and 15% on a currency neutral basis.
However, the recovery is unlikely to depend mainly on product launches. NIKE Direct revenues declined 6% in fiscal 2026, while NIKE Brand Digital fell 12%, indicating that distribution and consumer engagement remain important challenges. NIKE expects Sportswear to remain under pressure in fiscal 2027, with improvement anticipated in the second half. The category’s sell-through remains challenged, contributing to higher discounting and weaker future order books. Sportswear and Jordan Streetwear together account for roughly half of NIKE’s revenues, making their recovery important to restoring sustainable top-line growth.
Nevertheless, the company is responding by reshaping its footwear portfolio. In the second half of fiscal 2027, NIKE plans to introduce over a dozen new Sportswear footwear styles, emphasizing innovation, fresh silhouettes and distinct consumer experiences rather than relying primarily on retro franchises. The company removed more than $2 billion of classic footwear franchises from the market in fiscal 2026 as part of this repositioning.
NIKE has further emphasized its “Sport Offense” strategy, which seeks to create a more complete product portfolio, strengthen connections with athletes and consumers, and improve marketplace execution. The company said that progress was already visible in performance products during fiscal 2026.
New footwear could therefore help NIKE refresh consumer interest, improve full-price sell-through and reduce reliance on older franchises. A stronger performance-running portfolio could also create opportunities to attract consumers beyond traditional Sportswear offerings and generate renewed brand excitement. Hence, successful launches, supported by effective marketing, wholesale partnerships and improved digital execution, could provide an important foundation for rebuilding Sportswear momentum.
NKE’s Peers
lululemon athletica inc. LULU is putting greater emphasis on product newness, technical performance and innovation. LULU has been specifically increasing the frequency and breadth of new styles while maintaining its premium positioning. lululemon is leveraging its innovation platform and expanding beyond traditional yoga and core categories into areas such as running, training, tennis, golf, hiking and footwear.
adidas AG’s ADDYY innovation strategy is centered on athlete-led product development, advanced technologies, local consumer insights and a combination of performance innovation with lifestyle appeal. adidas is pursuing a broad-based growth strategy centered on product innovation, performance and lifestyle relevance. ADDYY is strengthening key performance categories such as Running, Football and Training through new technologies and athlete-focused products, while simultaneously refreshing its Lifestyle portfolio.
NKE’S Price Performance, Valuation and Estimates
Shares of NIKE have lost 28% in the past six months compared with the industry’s decline of 23.3%.
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 19.57X compared with the industry’s average of 17.32X.
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 5.1% and 30.6%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved south in the past seven days.
NIKE stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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