| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 51 | 18.2x | 17.3x | Around median | |
Growth | 12 | -1.2% | 7.1% | Bottom tier | |
Quality | 70 | 11.6% | 4.5% | Top tier | |
Safety | 77 | 0.9x | 2.6x | Top tier | |
Capital Return | 81 | 4.33% | 0.06% | Top tier | |
Momentum | 16 | -47.9% | -1.6% | Bottom tier | |
Sentiment | 41 | 30 | 3 | Around median |
The floor: what the company is worth if growth stopped today
49% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
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 sells athletic footwear and apparel through wholesale partners, its digital channels, and its stores, combining sports performance products with NIKE Sportswear, Jordan Brand, and Converse. In quarter 1 of fiscal year 2027, ended 2026-08-31, NIKE Sportswear represented slightly less than half of revenue, while Jordan Brand represented 13% of global business; therefore, a recovery in sports performance products alone remains insufficient to offset weakness in these two groups and Greater China.
Revenue in quarter 1 of fiscal year 2027, ended 2026-08-31, was approximately $11.2 billion, down 4.3% compared with the same quarter of the previous fiscal year, with net income of $712.0 million versus $727.0 million and diluted earnings per share of $0.48 versus $0.49. Gross margin improved to 42.8% from 42.2% over the same comparison, supported by supply chain cost management and currencies, with continued pressure from discounts and the sales channel mix.
Quarter 1 of fiscal year 2027, ended 2026-08-31, revealed clear geographic differences: North America grew 2%, while Greater China declined 26% and Europe, the Middle East, and Africa declined 5% compared with the same quarter of the previous fiscal year, while Asia Pacific and Latin America were flat. According to EL7 data, operating cash flow for the quarter was $135.0 million versus $222.0 million in the same quarter of the previous fiscal year; this means the improvement in gross margin needs support from improved cash collection and stable sales.
Q1 FY2027 (2026-08)
Last 12 months to 2026-08-31
When: 2026-12-17
Year-over-year revenue change at the 4.3% decline threshold
Gross margin at the 42.8% threshold
Lower end of adjusted earnings per share guidance at $1.15 for fiscal year 2027
The median price target of 9 analysts is $35, within a range of $19 to $60, a method that prices expected growth and is inherently inclined toward optimism. The discounted cash flow model, which measures the cash expected to be generated, gives a value of $27 within a range of $22 to $34 at a discount rate of 10.1%, and is inherently inclined toward conservatism. The no-growth value is $19, representing the value of current after-tax operating profit continuing indefinitely at a discount rate of 10.1%. The industry multiple value is $16 within a range of $15 to $28, pricing next year's earnings using a median multiple of 11.6 among 10 comparable companies. The industry multiple value and the no-growth value are close, while values rise progressively through the cash flow model to analyst targets; the difference reflects the weight of expected growth versus existing earnings and peer pricing, with overlapping ranges across the methods despite their different central values.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
In quarter 1 of fiscal year 2027, ended 2026-08-31, revenue was $11.2 billion, down 4.3% compared with the same quarter of the previous fiscal year, despite high single-digit percentage growth in NIKE Performance. Sportswear represents slightly less than half of revenue and declined by a low double-digit percentage, while Jordan Brand declined by a mid-teens percentage over the same comparison. Therefore, growth in running, football, and the other performance categories remains smaller than the pressure on the other businesses and Greater China.
Greater China revenue declined 26% in quarter 1 of fiscal year 2027, ended 2026-08-31, compared with the same quarter of the previous fiscal year. The response includes reducing digital distribution channels and focusing on official NIKE stores on Tmall, JD, and Douyin, alongside improving physical stores. A news report dated 2026-10-02 pointed to competitive pressure from Adidas, Hoka, Asics, and ON, making the issue also related to brand positioning and consumer preferences. Management expects revenue in China to be weaker during the remainder of fiscal year 2027 and the market repair to take several seasons.
Automated analysis for informational purposes only — not investment advice.
Pace targets approximately $2.5 billion in savings over the course of the program by developing the supply chain, reducing organizational layers, and changing resource allocation. Expected implementation costs are approximately $1 billion, in addition to approximately $300 million in severance costs in fiscal year 2026, ended 2026-05-31. Management expects most savings to be realized in fiscal years 2029 and 2030, with completion in fiscal year 2031, and some reinvestment. Therefore, the program's earnings impact depends on execution speed and the amount reinvested, rather than the savings figure alone.
According to EL7 data, operating cash flow was $2.8 billion for the last 12 months through 2026-08-31, equivalent to 90% of net income of $3.1 billion for the same period. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months through 2026-08-31 was approximately $2.1 billion. However, operating cash flow for quarter 1 of fiscal year 2027, ended 2026-08-31, was $135.0 million versus $222.0 million in the same quarter of the previous fiscal year. This means cash conversion for the trailing annual period is stronger than the picture for the quarter alone, while financing the turnaround requires monitoring continued cash generation.
2026-12-17 is the expected earnings announcement date according to the adopted calendar. The most important test is the revenue trajectory after its 4.3% decline compared with the same quarter of the previous fiscal year in quarter 1 of fiscal year 2027, ended 2026-08-31. This comes alongside a comparison headwind equivalent to approximately 400 basis points on quarter 2 revenue of fiscal year 2027, related to promotions in Europe and supply sales in North America in the previous fiscal year. Maintaining the adjusted earnings per share range for fiscal year 2027 at $1.15 to $1.35 will also be important in assessing how well the costs of repairing Sportswear, Jordan, and China are being contained.