Nike (NKE)
NYSE:NKE
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Nike
(NYSE:NKE)
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Rating:54Neutral
Price Target:
$60.00
▲(15.23% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Nike (NKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$77.08B
Dividend Yield2.81%
Average Volume (3M)15.24M
Price to Earnings (P/E)30.5
Beta (1Y)0.95
Revenue Growth-5.06%
EPS Growth-47.51%
CountryUS
Employees79,400
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.53
Shares Outstanding1,191,495,600
10 Day Avg. Volume14,489,311
30 Day Avg. Volume15,242,335
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)6.81
Price to Sales (P/S)1.94
P/FCF Ratio27.53
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue1.72
Enterprise Value/Gross Profit4.19
Enterprise Value/Ebitda21.55
Forecast
1Y Price Target
$73.53Price Target Upside41.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)1.54
Revenue Forecast (FY)$46.71B
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 accessorie...
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...
Nike Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Nike is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Nike is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyNike Earnings Call Summary
Earnings Call Date:Dec 18, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong growth in North America and running segments, supported by new product innovations and successful wholesale strategies. However, significant challenges persist in Greater China, impacting overall revenue and margins. The company is focused on long-term growth through new strategies and innovations, but ongoing regional challenges and margin pressures are notable concerns.Positive Updates
North America Growth
North America reported a 9% revenue growth, with wholesale increasing by 24%. The region showed strong performance in running, basketball, and training segments.
Negative Updates
Greater China Challenges
Greater China faced a 16% revenue decline, with significant drops in NIKE Digital (36%) and wholesale (15%). The region continues to face challenges in store traffic and market positioning.
Read all updates
Q2-2026 Updates
Positive
Negative
North America Growth
North America reported a 9% revenue growth, with wholesale increasing by 24%. The region showed strong performance in running, basketball, and training segments.
Read all positive updates
Company Guidance
In the call discussing NIKE, Inc.'s second quarter of fiscal 2026, several key metrics and strategic priorities were highlighted. The company reported a 1% increase in revenues on a reported basis, with wholesale growth of 8% and a notable 20% growth in North America wholesale. Despite facing headwinds, such as a 300 basis point decline in gross margins largely due to tariffs and inventory obsolescence, NIKE is optimistic about its ongoing initiatives. The company is focused on its "WinNow" actions and "sport offense" strategy to drive growth, targeting an 8% increase in wholesale and a significant 20% growth in running. NIKE's leadership emphasized the importance of diversifying the product portfolio and strengthening global partner relationships, with North America leading the way. Greater China remains a challenge, with revenue declining by 16%, but efforts are underway to realign the market strategy. Overall, NIKE is committed to margin expansion and returning to double-digit EBIT margins through growth, operational efficiencies, and strategic investments.Nike Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
67
Positive
Cash Flow
54
Neutral
| 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
Negative
52.07
Price Trends
60.22
Negative
61.62
Negative
66.05
Negative
Market Momentum
-2.40
Positive
28.63
Positive
21.91
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 52.07 is below the 20-day moving average (MA) of 55.64, below the 50-day MA of 60.22, and below the 200-day MA of 66.05, indicating a bearish trend. The MACD of -2.40 indicates Positive momentum. The RSI at 28.63 is Positive, neither overbought nor oversold. The STOCH value of 21.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $13.30B | 7.91 | 41.36% | ― | 12.38% | 18.43% | |
72 Outperform | $6.48B | 32.23 | 13.87% | ― | 18.86% | 88.29% | |
63 Neutral | $2.87B | 17.00 | 10.53% | 2.18% | 2.76% | -7.83% | |
63 Neutral | $18.27B | 13.49 | 34.82% | ― | 8.76% | 3.41% | |
62 Neutral | $4.02B | -57.09 | -5.37% | ― | <0.01% | -77.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $77.08B | 30.51 | 18.43% | 2.81% | -5.06% | -47.51% |
* Consumer Cyclical Sector Average
NKE
Nike
52.07
-9.67
-15.66%
COLM
Columbia Sportswear
54.84
-18.87
-25.60%
CROX
Crocs
79.94
-26.05
-24.58%
DECK
Deckers Outdoor
93.69
-17.87
-16.02%
LULU
Lululemon Athletica
151.39
-141.67
-48.34%
BIRK
Birkenstock Holding plc
35.22
-10.52
-23.00%
Nike Corporate Events
Business Operations and StrategyFinancial Disclosures
Nike Announces Cost-Realignment Plan to Boost Efficiency
Negative
Mar 5, 2026
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 expe...
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.