The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 41 | 28.8x | 20.1x | Near average | |
Growth | 16 | -2.7% | 5.6% | Below average | |
Quality | 51 | 15.7% | 7.6% | Near average | |
Safety | 62 | 0.1x | 0.4x | Near average | |
Capital Return | 58 | 3.70% | 2.19% | Near average | |
Momentum | 10 | — | — | Below average | |
Sentiment | 52 | — | — | Near average |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
Recent data indicates a notable decline in analyst optimism toward Nike stock, as the average price target has decreased by 1.67% over the past 30 days to reach $68.71. This decline is accompanied by a sharp Dispersion in forecasts, with estimates ranging between a high of $110 and a low of $35, reflecting a state of uncertainty regarding the company's future performance.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
NIKE, Inc. is a global leader in the design, development, and marketing of authentic athletic footwear, apparel, and equipment for a wide variety of sports and physical activities. The company relies for its profitability on an integrated business model that balances direct-to-consumer sales through its digital channels and NIKE Direct owned stores, with an extensive network of wholesale partners and distributors worldwide, supported by three main brands: NIKE, Jordan, and Converse.
During the third quarter of fiscal year 2026, NIKE recorded revenues of $11.3 billion, representing flat growth on a reported basis and a 3% decline on a currency-neutral basis. The company achieved a gross profit of $4.5 billion, while net income reached $520 million with earnings per share of $0.35. Gross profit margins were negatively impacted, declining by 130 basis points to reach 40.2%, driven primarily by tariff pressures in North America which amounted to 300 basis points.
On the channel and segment performance level, NIKE Direct sales decreased by 7% (with the digital portion declining by 9% and stores by 5%), while wholesale sales grew by 1%. Geographically, North America led the recovery path with revenue growth of 3%, while revenues in Europe, the Middle East, and Africa decreased by 7%, in Greater China by 10%, and in the Asia Pacific and Latin America region by 2%.
The stock is currently trading at $43.81, which is below the average analyst target of $68.71 (56.8%), with a buy consensus.
The company's gross profit margins declined by 130 basis points to reach 40.2%. This decline is primarily due to the impact of high tariffs in the North American market, which amounted to 300 basis points. In addition, ongoing promotional offers and discounts to clear stagnant inventory in digital markets contributed to the pressure on margin profitability.
NIKE recorded a one-time cost of $230 million in the third quarter related to employee severance, particularly in the supply chain and technology sectors. This step aims to streamline the organizational structure and shift supply chain costs from fixed to variable to increase flexibility. The company expects the benefits of these actions to begin appearing during fiscal year 2027 and to increase in 2028.
The running sector achieved strong growth exceeding 20% during the third quarter, thanks to a focus on meeting athlete requirements and product development. The new NIKE MIND platform also achieved exceptional success, selling out in all markets immediately upon launch, prompting the company to double its production for upcoming seasons to meet the demands of 2 million registered users. The company also introduced other innovations such as AeroFit, which cools apparel by 200% compared to traditional Dri-FIT technology.
Automated analysis for informational purposes only — not investment advice.
The company expects fourth-quarter revenues to decline by 2% to 4%, with a sharp decline in Greater China of approximately 20% as a result of market cleanup actions. As for the second quarter of fiscal year 2027, estimates indicate that it will be the last quarter to witness a material negative impact of tariffs on a year-over-year basis, after which margins are expected to begin expanding and recovering gradually.