Nike Is Still Searching for Its Turnaround As Wall Street Sees Another Tough Year
Key takeaways
- Nike’s latest earnings and guidance cuts deepen doubts about a near‑term turnaround, pushing the stock to a new 52‑week low and prompting analysts to slash price targets.
- First‑quarter revenue $11.21 billion
- Consensus revenue estimate $11.33 billion
- Adjusted earnings 48 cents per share
What happened
Nike Inc. (NYSE: NKE) reported first‑quarter revenue of $11.21 billion, missing the $11.33 billion analyst estimate, while adjusted earnings of 48 cents per share beat the 44‑cent estimate. The company warned that fiscal 2027 revenue will decline by a high‑single‑digit percentage and forecast adjusted earnings of $1.15 to $1.35 per share, below the $1.69 analyst estimate. Several analysts cut their price forecasts and earnings estimates, citing weaker sales outlook and ongoing restructuring…
Why it matters
The guidance downgrade signals continued pressure on Nike’s premium valuation and raises doubts about when the brand can regain momentum. Analysts’ cuts to EPS and price targets reflect concerns over North America’s margin improvement, Greater China challenges, and competition from peers with double‑digit growth. The…
Short-term and longer-term
Short-term. Over the next few days, traders should watch for any upside or downside gaps as the market digests the downgraded guidance.
Longer-term. For investors looking beyond the immediate reaction, the key question is whether Nike can reverse its revenue decline and sustain margin gains in the coming quarters.