Nike (NKE) AI Stock Analysis

• Market Cap: $92.05B
• Dividend Yield: 2.81%
• Average Volume (3M): 13.77M
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.87
• 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: 13,765,629
• 30 Day Avg. Volume: 13,765,950
• 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: 1.03
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 4.95
• Enterprise Value/Ebitda: 25.47
• 1Y Price Target: $76.00
• Price Target Upside: 22.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): 1.55
• Revenue Forecast (FY): $46.71B

• Rating: 54 Neutral
• Price Target: $62.00 ▼(-0.29% Downside)
• Action: Reiterated Date: 12/31/25
• Date: Action: Reiterated 12/31/25

The score is held back primarily by pressured profitability/cash flow and bearish technicals (below major moving averages with negative MACD). Offsetting factors include stable leverage and constructive earnings-call highlights in North America/wholesale and running, while valuation remains a moderate headwind given the high P/E versus current margin pressure.

Positive Factors

North America Growth

Strong growth in North America, particularly in wholesale, indicates robust demand and effective market strategies, supporting long-term revenue stability.

Running Segment Success

Consistent growth in the running segment reflects successful product innovation and consumer engagement, strengthening Nike's market position.

Leadership Changes

Leadership restructuring aims to enhance operational efficiency and market strategy, potentially improving competitive positioning and long-term growth.

Negative Factors

Greater China Challenges

Revenue decline in Greater China highlights regional challenges, impacting overall growth and requiring strategic realignment to regain market traction.

Gross Margin Decline

Declining gross margins due to tariffs and inventory issues may pressure profitability, affecting long-term financial performance and strategic flexibility.

NIKE Direct Decline

Challenges in the direct-to-consumer channel indicate potential issues in digital strategy, impacting revenue growth and consumer engagement.

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 strongly in TTM (+15.7%), and leverage remains manageable (~0.82x debt-to-equity). However, profitability has reset lower (net margin ~5.4% TTM vs ~7.0% FY2025 and ~11.1% FY2024) and cash generation weakened (FCF growth ~-17.7% and lower operating cash flow coverage), limiting near-term financial flexibility.

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: 62.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 62.18 is below the 20-day moving average (MA) of 63.29, below the 50-day MA of 63.42, and below the 200-day MA of 66.98, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.91 is Neutral, neither overbought nor oversold. The STOCH value of 25.70 is Neutral, 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	$16.65B	16.57	39.69%	―	12.38%	18.43%
LULU	73 Outperform	$22.67B	12.92	41.02%	―	8.76%	3.41%
BIRK	72 Outperform	$7.66B	18.18	13.95%	―	18.86%	88.29%
COLM	68 Neutral	$3.24B	19.14	10.16%	2.18%	2.76%	-7.83%
CROX	62 Neutral	$4.56B	-72.12	-5.19%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NKE	54 Neutral	$92.05B	36.46	17.95%	2.81%	-5.06%	-47.51%

Nike Corporate Events

Nike Announces Leadership Changes for Operational Efficiency

On December 2, 2025, NIKE, Inc. announced significant organizational changes to its senior leadership team to enhance its operational efficiency and market strategy. Venkatesh Alagirisamy was appointed as the Executive Vice President, Chief Operating Officer, effective December 8, 2025, while the roles of Chief Commercial Officer and Chief Technology Officer were eliminated, resulting in the departure of Craig Williams and Dr. Muge Dogan, respectively. These changes aim to integrate technology more seamlessly into operations and strengthen the company’s connection with consumers, positioning NIKE for growth and enhancing its competitive edge in the marketplace.

The most recent analyst rating on (NKE) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Nike stock, see the NKE Stock Forecast page.