Nike (NKE)
NYSE:NKE
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Nike
(NYSE:NKE)
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Rating:50Neutral
Price Target:
$45.00
▼(-2.24% Downside)
Action:ReiteratedDate:04/02/26
The score is held back primarily by weakened financial quality (notably the sharp step-down in operating/free cash flow and margin compression) and a clearly bearish technical setup with the stock trading well below key moving averages. A high P/E multiple relative to current profitability further limits the valuation score, while earnings-call commentary provides partial support via execution progress and a defined path to margin improvement in FY27, albeit against near-term revenue and tariff headwinds.
Positive Factors
Product Innovation & Demand
Rapid sell-through of NIKE MIND, large consumer signup and a heavy patent pipeline indicate durable product differentiation. A proven innovation engine supports sustained pricing power, repeatable product launches and long-term brand premium that can drive revenue and margin recovery over multiple seasons.
Negative Factors
Weakened Cash Generation
A sharp step-down in operating and free cash flow materially reduces internally available capital for investments, inventory normalization and shareholder returns. Persistent cash-flow weakness raises reliance on external funding and constrains strategic optionality until working-capital and margin trends sustainably improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Product Innovation & Demand
Rapid sell-through of NIKE MIND, large consumer signup and a heavy patent pipeline indicate durable product differentiation. A proven innovation engine supports sustained pricing power, repeatable product launches and long-term brand premium that can drive revenue and margin recovery over multiple seasons.
Read all positive factors
Nike (NKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.29B
Dividend Yield2.81%
Average Volume (3M)24.34M
Price to Earnings (P/E)44.2
Beta (1Y)0.81
Revenue Growth-5.06%
EPS Growth-47.51%
CountryUS
Employees79,400
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.35
Shares Outstanding1,199,499,300
10 Day Avg. Volume27,325,945
30 Day Avg. Volume24,340,238
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 Cap1.09
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit3.86
Enterprise Value/Ebitda21.99
Forecast
1Y Price Target
$60.90Price Target Upside32.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering24
EPS Forecast (FY)1.5
Revenue Forecast (FY)$46.29B
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 primarily makes money by selling branded athletic footwear, apparel, and equipment across a mix of wholesale and direct-to-consumer (DTC) channels. (1) Product sales: The largest revenue driver is footwear (performance and lifestyle categorie...
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:Mar 31, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 25, 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 | 3.33B | 4.51B | 7.16B | 6.77B | 7.51B | 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
Negative
46.03
Price Trends
54.92
Negative
59.18
Negative
64.79
Negative
Market Momentum
-3.05
Negative
38.76
Neutral
84.66
Negative
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 46.03 is below the 20-day moving average (MA) of 47.43, below the 50-day MA of 54.92, and below the 200-day MA of 64.79, indicating a bearish trend. The MACD of -3.05 indicates Negative momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 84.66 is Negative, 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 | $15.45B | 7.91 | 41.36% | ― | 12.38% | 18.43% | |
72 Outperform | $6.95B | 32.23 | 13.87% | ― | 18.86% | 88.29% | |
63 Neutral | $3.03B | 17.00 | 10.53% | 2.18% | 2.76% | -7.83% | |
63 Neutral | $19.65B | 13.49 | 34.82% | ― | 8.76% | 3.41% | |
62 Neutral | $5.15B | -57.09 | -5.37% | ― | <0.01% | -77.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $67.29B | 44.21 | 16.41% | 2.81% | -5.06% | -47.51% |
* Consumer Cyclical Sector Average
NKE
Nike
46.03
-8.72
-15.92%
COLM
Columbia Sportswear
60.79
-0.96
-1.55%
CROX
Crocs
105.87
16.41
18.34%
DECK
Deckers Outdoor
112.50
8.95
8.64%
LULU
Lululemon Athletica
167.28
-86.63
-34.12%
BIRK
Birkenstock Holding plc
39.54
-7.10
-15.22%
Nike Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Nike Establishes New $1 Billion Short-Term Credit Facility
Neutral
Mar 9, 2026
On March 6, 2026, Nike entered into a new 364-day unsecured revolving credit agreement with Bank of America and other lenders, providing up to $1 billion in borrowing capacity for working capital and general corporate purposes, including support f...
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.