Nike (NKE) AI Stock Analysis

• Market Cap: $79.11B
• Dividend Yield: 2.81%
• Average Volume (3M): 15.17M
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.92
• Revenue Growth: -5.06%
• EPS Growth: -47.51%
• Country: US
• Employees: 79,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.53
• Shares Outstanding: 1,191,495,600
• 10 Day Avg. Volume: 16,397,234
• 30 Day Avg. Volume: 15,168,240
• PEG Ratio: -0.66
• Price to Book (P/B): 6.81
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 27.53
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 22.35
• 1Y Price Target: $74.73
• Price Target Upside: 39.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 1.55
• Revenue Forecast (FY): $46.71B

• Rating: 54 Neutral
• Price Target: $60.00 ▲(12.28% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by weaker profitability and cash flow versus recent years and a bearish technical setup with the stock below major moving averages. Earnings call takeaways are mixed—strong North America and running growth, but significant China weakness and margin pressure—while valuation remains demanding at ~30x earnings despite a supportive dividend yield.

Positive Factors

Brand & Market Leadership

Nike's iconic brand, multi-decade scale, and broad product portfolio (including Jordan and Converse) create durable pricing power, global shelf space and partner pull. This entrenched brand equity supports revenue resilience and product premiumization over the medium term.

Multi-channel Strength & North America Momentum

Balanced growth across wholesale and direct channels, led by North America and running, reflects diversified revenue streams and strong partner relationships. Durable multi-channel execution reduces dependence on any single route-to-market and supports sustainable top-line recovery.

Balance Sheet Support & Healthy ROE

Moderate leverage and a sizable equity base provide financial flexibility to fund product investment, share repurchases, or restructurings. A near-18% ROE indicates efficient capital use, helping the company absorb cyclical profit pressure while investing for medium-term growth.

Negative Factors

Margin & Cash Flow Compression

Material compression in net and operating margins and a meaningful drop in free cash flow reduce strategic flexibility. Sustained lower cash conversion constrains reinvestment and raises the bar for achieving management's targeted margin expansion over the next several quarters.

Greater China & DTC Headwinds

China's double-digit contraction and weakness in NIKE Direct and digital channels are structural concerns given China’s scale and growth profile. Prolonged underperformance there and e-commerce softness could weigh materially on medium-term revenue and margin recovery.

Regulatory & Organizational Risk

An active EEOC enforcement action and related subpoenas create legal, compliance and reputational risk. Protracted investigations can lead to remedies, increased HR/legal costs, and distract management from strategic priorities, affecting long-term operating efficiency.

Nike Business Overview & Revenue Model

Company Description

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells men's, women's, and kids athletic footwear, apparel, equipment, and accessories worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. In addition, it sells a line of performance equipment and accessories comprising bags, socks, sport balls, 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. The company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel. Additionally, it licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. The company 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 formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.

How the Company Makes Money

Nike generates revenue primarily through the sale of footwear, apparel, and equipment. The company operates a multi-channel distribution model, including direct-to-consumer (DTC) sales through its retail stores and e-commerce platforms, as well as wholesale partnerships with third-party retailers. Key revenue streams include athletic footwear, which accounts for a significant portion of sales, and sportswear, which includes apparel and accessories. Nike's partnerships with professional athletes and sports teams enhance brand visibility and drive consumer engagement. Additionally, the company's investment in digital platforms and technology has allowed it to enhance its DTC sales, expand its customer base, and increase overall profitability.

Nike Financial Statement Overview

Summary

Revenue rebounded in the TTM period, but profitability and cash generation have weakened meaningfully versus prior years. Net and operating margins compressed sharply, and free cash flow declined with lower operating cash flow coverage. The balance sheet remains supportive with manageable leverage and a sizable equity base, partially offsetting the margin and cash flow reset.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded (+15.7%), but profitability is materially weaker versus the prior annual periods: net margin fell to ~5.4% (from ~7.0% in FY2025 and ~11.1% in FY2024) and operating margin also compressed sharply (~4.5% TTM vs ~8.0% FY2025). Gross margin remains solid for the industry (~41% TTM), but the multi-year trend shows meaningful pressure from the FY2022–FY2024 peak, making the earnings quality and durability a key watch item.

Balance Sheet

Leverage looks manageable and fairly stable, with debt at ~0.82x equity in TTM (similar across recent years) and a sizable equity base (~$14.1B). Returns on equity remain healthy (~18% TTM), though down materially from the elevated FY2023–FY2025 levels, consistent with the recent profit compression. Overall, the balance sheet supports operations, but the declining return profile is a moderate negative.

Cash Flow

Cash generation weakened: free cash flow is down meaningfully in TTM (free cash flow growth ~-17.7%), and operating cash flow coverage is low in TTM (~0.32) versus stronger levels in FY2023–FY2024 (~0.63–0.70). A positive offset is that free cash flow still largely tracks earnings (free cash flow is ~85% of net income TTM), but the recent deceleration in cash conversion reduces flexibility near-term.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	46.51B	46.31B	51.36B	51.22B	46.71B	44.54B
Gross Profit	19.13B	19.79B	22.89B	22.29B	21.48B	19.96B
EBITDA	3.72B	4.51B	7.16B	6.77B	7.51B	7.73B
Net Income	2.52B	3.22B	5.70B	5.07B	6.05B	5.73B
Balance Sheet
Total Assets	37.79B	36.58B	38.11B	37.53B	40.32B	37.74B
Cash, Cash Equivalents and Short-Term Investments	8.35B	9.15B	11.58B	10.68B	13.00B	13.48B
Total Debt	11.28B	11.02B	11.95B	12.14B	12.63B	12.81B
Total Liabilities	23.70B	23.37B	23.68B	23.53B	25.04B	24.97B
Stockholders Equity	14.09B	13.21B	14.43B	14.00B	15.28B	12.77B
Cash Flow
Free Cash Flow	2.48B	3.27B	6.62B	4.87B	4.43B	5.96B
Operating Cash Flow	3.06B	3.70B	7.43B	5.84B	5.19B	6.66B
Investing Cash Flow	-143.00M	-275.00M	894.00M	564.00M	-1.52B	-3.80B
Financing Cash Flow	-3.93B	-5.82B	-5.89B	-7.45B	-4.84B	-1.46B

Nike Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKE, the sentiment is Negative. The current price of 53.44 is below the 20-day moving average (MA) of 58.35, below the 50-day MA of 61.43, and below the 200-day MA of 66.26, indicating a bearish trend. The MACD of -2.39 indicates Positive momentum. The RSI at 28.01 is Positive, neither overbought nor oversold. The STOCH value of 16.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NKE.

Nike Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	83 Outperform	$14.89B	7.91	41.36%	―	12.38%	18.43%
BIRK	72 Outperform	$6.45B	32.23	13.87%	―	18.86%	88.29%
COLM	68 Neutral	$2.90B	17.00	10.53%	2.18%	2.76%	-7.83%
LULU	63 Neutral	$19.99B	13.49	34.82%	―	8.76%	3.41%
CROX	62 Neutral	$3.88B	-57.09	-5.37%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NKE	54 Neutral	$79.11B	30.51	18.43%	2.81%	-5.06%	-47.51%

Nike Corporate Events

Nike Announces Cost-Realignment Plan to Boost Efficiency

Nike’s management approved an organizational change plan on February 27 aimed at operating more efficiently and profitably by realigning costs while continuing to invest in growth initiatives. The plan, together with earlier actions, is expected to generate approximately $300 million in pre-tax charges through the nine months ending February 28, 2026, mainly from employee severance, with most of the impact recognized in the third quarter of fiscal 2026.

The company indicated it may pursue additional efficiency measures, which could lead to further charges in future quarters as it continues to reassess its cost structure. Management emphasized that the projected charges are subject to various assumptions, including differing legal requirements across jurisdictions, meaning the actual financial impact could vary materially from current estimates for stakeholders and financial planning.

The most recent analyst rating on (NKE) stock is a Buy with a $78.00 price target. To see the full list of analyst forecasts on Nike stock, see the NKE Stock Forecast page.