Nike Inc (NKE)
NYSE:NKE
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Nike
(NYSE:NKE)
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Rating:54Neutral
Price Target:
$45.00
▲(7.45% Upside)
Action:Reiterated
Date:06/19/26
The score is held down primarily by deteriorating profitability and a steep drop in operating/free cash flow, despite a stable balance sheet. Technicals suggest stabilization near short-term averages but a still-weak longer-term trend. Valuation is mixed (high P/E versus a solid dividend yield). Earnings-call guidance points to near-term revenue and tariff headwinds, partially balanced by a credible plan for gross-margin improvement starting in FY27 and areas of operational momentum (Running and North America wholesale).
Positive Factors
Global brand and omni-channel reach
Nike’s globally recognized brands and broad channel mix (wholesale plus owned retail and digital) provide durable demand pull and pricing power. Owning DTC and wholesale relationships lets Nike capture higher-margin retail economics, manage inventory flows, and sustain long-term consumer reach across geographies and segments.
Negative Factors
Material drop in operating and free cash flow
A sharp decline in cash generation erodes the company’s ability to self‑fund investments, pay down liabilities, or increase returns to shareholders. Persistently lower FCF constrains margin rehabilitation plans, digital/retail investments, and responsiveness to supply or tariff shocks, raising execution risk over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Global brand and omni-channel reach
Nike’s globally recognized brands and broad channel mix (wholesale plus owned retail and digital) provide durable demand pull and pricing power. Owning DTC and wholesale relationships lets Nike capture higher-margin retail economics, manage inventory flows, and sustain long-term consumer reach across geographies and segments.
Read all positive factors
Nike Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region (e.g., North America, EMEA, Greater China, APAC/Latin America), showing where the company is strongest and where it faces slowdowns or growth opportunities. Helps you evaluate exposure to regional economic cycles, currency swings, and market expansion potential that can materially affect revenue and strategy.
Breaks down sales by region (e.g., North America, EMEA, Greater China, APAC/Latin America), showing where the company is strongest and where it faces slowdowns or growth opportunities. Helps you evaluate exposure to regional economic cycles, currency swings, and market expansion potential that can materially affect revenue and strategy.
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The Fly
The FlyNike (NKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.94B
Dividend Yield2.81%
Average Volume (3M)20.73M
Price to Earnings (P/E)29.7
Beta (1Y)0.97
Revenue Growth-2.83%
EPS Growth-49.54%
CountryUS
Employees79,400
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)1.52
Shares Outstanding1,199,499,300
10 Day Avg. Volume19,361,906
30 Day Avg. Volume20,731,530
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/Revenue1.50
Enterprise Value/Gross Profit3.68
Enterprise Value/Ebitda19.02
Forecast
1Y Price Target
$58.00Price Target Upside38.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering25
EPS Forecast (FY)1.82
Revenue Forecast (FY)$46.50B
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 footwear, apparel, and equipment across three main brand lines: Nike, Jordan, and Converse. (1) Product sales (largest driver): Revenue is generated from the sale of footwear (e.g., running, b...
Nike Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: clear operational progress in high-priority areas (notably Running, Football, wholesale momentum in North America, and several innovation wins including NIKE MIND), along with a detailed plan to complete 'Win Now' actions by year-end and a stated path to margin inflection in fiscal 2027. However, meaningful near-term headwinds remain—overall revenue down, digital and Sportswear declines, substantial tariff pressure on margins, a $230M severance charge, EMEA promotional/inventory issues, and a planned large revenue reduction in Greater China in the near term. Management emphasized deliberate, strategic actions that should improve the quality and sustainability of revenue and margins over time, but material near-term impacts balance those positives.Positive Updates
NIKE Running Outperformance
NIKE Running grew over 20% in the quarter and drove double-digit growth across multiple regions, cited as the first sport to execute the 'sport offense' and a roadmap for other sports.
Negative Updates
Overall Revenue Pressure
Q3 revenues were flat on a reported basis and down 3% on a currency-neutral basis; management expects revenues down low single digits over the next nine months with Q4 guidance of down 2% to 4%.
Read all updates
Q3-2026 Updates
Positive
Negative
NIKE Running Outperformance
NIKE Running grew over 20% in the quarter and drove double-digit growth across multiple regions, cited as the first sport to execute the 'sport offense' and a roadmap for other sports.
Read all positive updates
Company Guidance
NIKE guided that revenues over the next nine months (through the end of the calendar year) are expected to be down low single digits year‑over‑year—with modest growth in North America offset by declines in Greater China—and for Q4 FY26 specifically they expect revenues down 2%–4% (Greater China down ~20%), with a ~2‑point FX benefit. They expect sequential gross‑margin improvement (Q4 gross margin down roughly 25–75 bps, including ~250 bps from higher U.S. tariffs) and project gross‑margin expansion beginning in Q2 FY27 as tariff mitigation and transitory Win‑Now impacts recover; earnings are expected to be roughly flat with disciplined SG&A (Q4 SG&A dollars flat to slightly down). Other expense net is expected to be an expense of $15–25 million in Q4, the full‑year tax rate is expected in the low‑20% range, and management expects Q2 FY27 to be the last quarter where tariffs are a material YoY headwind and to complete Win‑Now actions by calendar‑year end (full‑year/long‑term guidance to follow at Investor Day).Nike Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
68
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.52B | 46.31B | 51.36B | 51.22B | 46.71B | 44.54B |
| Gross Profit | 18.99B | 19.79B | 22.89B | 22.29B | 21.48B | 19.96B |
| EBITDA | 3.67B | 4.98B | 7.80B | 7.34B | 7.78B | 7.73B |
| Net Income | 2.25B | 3.22B | 5.70B | 5.07B | 6.05B | 5.73B |
Balance Sheet | ||||||
| Total Assets | 37.06B | 36.58B | 38.11B | 37.53B | 40.32B | 37.74B |
| Cash, Cash Equivalents and Short-Term Investments | 8.06B | 9.15B | 11.58B | 10.68B | 13.00B | 13.48B |
| Total Debt | 11.18B | 11.02B | 11.95B | 12.14B | 12.63B | 12.81B |
| Total Liabilities | 22.97B | 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 | 1.05B | 3.27B | 6.62B | 4.87B | 4.43B | 5.96B |
| Operating Cash Flow | 1.69B | 3.70B | 7.43B | 5.84B | 5.19B | 6.66B |
| Investing Cash Flow | -262.00M | -275.00M | 894.00M | 564.00M | -1.52B | -3.80B |
| Financing Cash Flow | -3.42B | -5.82B | -5.89B | -7.45B | -4.84B | -1.46B |
Nike Technical Analysis
Positive
41.88
Price Trends
44.06
Positive
50.47
Negative
57.87
Negative
Market Momentum
0.14
Negative
53.43
Neutral
59.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKE, the sentiment is Positive. The current price of 41.88 is below the 20-day moving average (MA) of 44.68, below the 50-day MA of 44.06, and below the 200-day MA of 57.87, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $15.15B | 15.04 | 40.79% | ― | 9.35% | 10.89% | |
70 Outperform | $3.40B | 20.66 | 10.26% | 2.18% | 0.54% | -19.72% | |
70 Outperform | $8.48B | 20.72 | 12.95% | ― | 20.35% | 54.59% | |
63 Neutral | $13.26B | 8.84 | 31.26% | ― | 4.22% | -15.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $6.21B | -60.61 | -7.54% | ― | -1.85% | -108.05% | |
54 Neutral | $66.94B | 29.71 | 16.41% | 2.81% | -2.83% | -49.54% |
* Consumer Cyclical Sector Average
NKE
Nike
45.20
-13.96
-23.59%
COLM
Columbia Sportswear
66.46
7.48
12.69%
CROX
Crocs
125.05
27.68
28.43%
DECK
Deckers Outdoor
109.11
8.67
8.63%
LULU
Lululemon Athletica
111.77
-113.79
-50.45%
BIRK
Birkenstock Holding plc
46.11
-6.03
-11.57%
Nike Corporate Events
Business Operations and StrategyExecutive/Board Changes
Nike Announces Board Transition as John Rogers Retires
Positive
Jun 18, 2026
On June 15, 2026, Nike announced that John W. Rogers, Jr., a board member since 2018 and founder of Ariel Investments, will retire from its board following the September 2026 annual meeting of shareholders, after which the board is expected to shr...
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.