Nike, Inc. is upgraded to Hold as valuation now reflects ongoing turnaround challenges and an extended recovery timeframe. NKE sales are at multiyear lows with Q4 revenues down 1% YoY, and guidance points to further declines in Q1 FY2027. Gross margin stabilization is encouraging, and expansion is expected in Q1; EPS growth in Q4 was mostly powered by one-off tariff recovery.
NIKE and adidas offer contrasting fundamentals, with one rebuilding margins and demand while the other posts broad growth and stronger profitability.
NKE's brand investments are strengthening demand and engagement, but higher marketing and transformation costs may pressure near-term margins.
Nike remains a hold as persistent margin pressure and tepid revenue growth offset its iconic brand and near-4% dividend yield. NKE's recent double-beat earnings were inflated by a $986M one-time tariff refund; underlying EPS and margins declined, raising concerns about sustainable profitability. North America showed resilience, but declines in EMEA, APLA, and Greater China, plus flat FY'27 revenue guidance, limit near-term upside potential.
NKE's sport-led reset is gaining traction in performance and wholesale, but tariffs, Direct weakness and China pressure keep the recovery uneven.
NKE's 2026 reset has cash strength and performance traction, but weak estimates, channel pressure and valuation keep the stock from looking like a bargain.
NKE's recovery is gaining ground in running, training and wholesale, but weak Sportswear, NIKE Direct and China trends keep its 2026 outlook uneven.
Zacks.com users have recently been watching Nike (NKE) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
DJ van Hameren will join the screenless health-tracking brand as it works to push its appeal to a global audience as well as women.
NKE's wholesale business is gaining momentum as stronger retail partnerships and healthier inventory support its turnaround strategy.
Nike ( NKE ) shares continue to slide for one primary reason which the Zacks Rank has warned investors about for the past two years: persistent downward EPS estimate revisions by Wall Street analysts. In just the past few months the consensus EPS estimate for FY 2027 (ends May) has declined by 20% from $2.00 to $1.80.
Nike is still navigating challenges in growing sales, with revenue down 1% year over year last quarter. Over the last year, Nike paid out significantly more in dividends than it generated in free cash flow.