NIKE, Inc. (NKE) slips after deep earnings analysis
NIKE, Inc. (NKE) beat EPS estimates but missed on revenue, and the stock slipped as investors weighed a softer top line against improving performance categories. This deep-dive examines the quarter, category trends, FY27 guidance, and what the mixed results mean for the turnaround.
NIKE, Inc. (NKE) posted a mixed quarter, beating EPS estimates at $0.48 but missing revenue expectations at $11.21 billion. The stock slipped after the report as investors focused on slowing sales, pressure in Sportswear and Jordan, and a FY27 outlook calling for high-single-digit revenue declines and adjusted EPS of $1.15 to $1.35. For investors, the takeaway is that Nike’s turnaround is still early: Running remains strong, but the broader recovery is not yet showing up in top-line growth.
NIKE, Inc. (NKE) beat earnings estimates but missed revenue expectations in its latest report, delivering $0.48 in EPS against a $0.4365 estimate and $11.21B in revenue against $11.32B. The stock slipped 0.71% to $35.15, while trading volume reached 95,217,681 shares against an average of 27,550,706.
NKE earnings beat on EPS, with $0.48 versus the $0.4365 consensus estimate, but revenue came in at $11.21B versus $11.32B expected.
EPS fell from $0.72 in the prior quarter and stood slightly below the $0.49 reported in the comparable August 2025 quarter.
Running and other performance categories remained the bright spot. NIKE reported five straight quarters of double-digit Running growth and roughly $1B of added Running revenue.
Sportswear and Jordan Streetwear remained under pressure. Nike expects both businesses to stay negative in FY27, with improvement concentrated in the back half.
The FY27 outlook calls for revenue to decline in the high-single-digit range and adjusted EPS of $1.15 to $1.35, excluding about $0.15 of Pace-program impact.
RBC Capital downgraded NKE to Sector Perform from Outperform and cut its price target to $50 from $70. The broader analyst consensus remains Buy, with 1 strong buy, 32 buys, 31 holds, and 7 sells.
Financial Performance: EPS Beat Masks a Revenue Reset
The latest NIKE, Inc. earnings analysis starts with a mixed scorecard. EPS of $0.48 exceeded the $0.4365 estimate. Revenue of $11.21B, however, missed the $11.32B consensus. That combination points to better earnings control than top-line momentum.
The quarter also shows a sharp change from the prior period. Revenue rose from $10.97B in the quarter ended May 31, 2026, to $11.21B. EPS moved in the opposite direction, falling from $0.72 to $0.48. Net income also declined from $1.07B to $0.71B. The previous February quarter produced $0.35 of EPS and $0.52B of net income.
The year-over-year comparison is less forgiving. Revenue was $11.72B in the August 2025 quarter, while EPS was $0.49. The latest $11.21B revenue figure and $0.48 EPS therefore show a business still operating below last year's level.
Annual product data adds useful detail. In FY26, footwear generated $30.538B, apparel produced $15.717B, and product and service, other contributed $143M. In FY25, footwear revenue was $30.967B, apparel was $15.268B, and product and service, other was $74M. Footwear remains the larger engine, but its annual revenue declined while apparel grew.
That product split matches the operating story from management. Performance sports are gaining traction, while lifestyle categories are carrying excess pressure. Performance grew at a mid-single-digit rate during FY26. Sportswear declined at a double-digit rate in the latest detailed business update, and Jordan Streetwear remains part of the turnaround problem.
The EPS beat therefore deserves careful treatment. It is a positive earnings surprise, but it does not yet represent a broad-based sales recovery. For NKE, the quality of the revenue mix matters more than a single quarterly beat.
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NKE closed at $35.15, down 0.71%. The share count traded was 95,217,681, compared with an average of 27,550,706. Heavy volume alongside a lower close shows that the EPS beat did not settle the larger debate around Nike's recovery.
RBC Capital delivered the clearest post-earnings judgment. The firm moved NKE to Sector Perform from Outperform and lowered its target to $50 from $70. RBC also reduced its FY27 and FY28 EPS estimates by 9% and 13%.
The recovery under Elliott Hill is progress, but slower and narrower than we were anticipating. - RBC Capital
RBC's concern extends beyond one weak revenue line. The firm cited more than 4 percentage points of lost sports footwear market share since 2023, with On Running, New Balance, Hoka, and Asics among the beneficiaries. That frames Nike's challenge as a competitive issue, not only a product-cycle issue.
UBS kept a Neutral rating and cut its price target to $42 from $48. The firm said its channel checks showed Nike's global sales growth trend had deteriorated over the prior three months.
Global sales growth trends have deteriorated over the last three months. - Jay Sole, UBS
Morgan Stanley resumed coverage with an Underweight rating and a $31 price target. Its thesis centers on negative EPS revision risk and a valuation that remains demanding for Nike's slower growth profile. Together, the analyst actions show a market that respects the brand but questions the speed of its financial repair.
Management Commentary: Sport Growth Versus Lifestyle Pressure
CEO Elliott Hill presented the turnaround as an operating-model rebuild. Nike moved about 8,000 employees into vertical sport teams through its Sport Offense structure. The company also simplified parts of its supply chain and technology operations.
The results aren't there yet. We know we're not living up to our full potential, particularly in NIKE Sportswear and Jordan Streetwear. - Elliott Hill, CEO, Earnings Call
Hill's strongest evidence rests in performance categories. Nike reported five consecutive quarters of double-digit Running growth. The company also gained 5 points of running market share in statement footwear across Western Europe and North America during FY26.
When we lead with sport authentically, consumers respond. - Elliott Hill, CEO, Earnings Call
The strategic message is simple: Nike wants sport performance to rebuild brand heat, then use that strength to repair the broader product portfolio. Hill described the goal as a repeatable connection between product, brand, marketplace, and operations. Nike plans to discuss the next phase of its growth strategy at Investor Day on November 16 and 17.
CFO Matthew Friend placed more emphasis on the consumer and the external cost environment. He described pressure across global markets and linked that pressure to weaker Sportswear demand. His guidance also reflects a longer repair cycle, with FY27 revenue expected to decline in the high-single-digit range and adjusted EPS expected at $1.15 to $1.35, excluding about $0.15 from the Pace program.
Our consumer is under pressure around the world, and we can particularly see it having a larger impact on Sportswear. - Matthew Friend, CFO, Earnings Call
Tariffs remain a dynamic cost headwind that we expect to continue looking forward. - Matthew Friend, CFO, Earnings Call
Friend's numbers reinforce Hill's strategy. Nike is protecting the foundations of the business, but that process carries near-term revenue costs. Tightening buys, reducing future sell-in, and managing inventory can improve marketplace health while also limiting reported sales.
Bottom Line
NKE earnings delivered a real EPS beat, but the $11.21B revenue miss and high-single-digit FY27 decline forecast keep the turnaround under pressure. Running and performance sports provide a credible growth engine, while Sportswear, Jordan Streetwear, China, and lost market share remain major obstacles. The stock's Buy consensus now faces a tougher test: Nike must turn brand and product improvements into broad revenue growth.
Yes. NIKE reported adjusted EPS of $0.48, above the $0.4365 consensus estimate. Revenue missed expectations at $11.21 billion versus $11.32 billion expected.
+Why did NKE stock fall after earnings?
The stock fell 0.71% to $35.15 because the EPS beat was offset by a revenue miss and a cautious outlook. Investors also reacted to weakness in Sportswear and Jordan Streetwear, which management expects to remain negative in FY27.
+What did NIKE guide for FY27?
NIKE said FY27 revenue is expected to decline in the high-single-digit range. The company also guided to adjusted EPS of $1.15 to $1.35, excluding about $0.15 of Pace-program impact.
+What are analysts saying about NIKE after the report?
RBC Capital downgraded NKE to Sector Perform from Outperform and cut its price target to $50 from $70. UBS kept a Neutral rating with a $42 target, while Morgan Stanley resumed coverage at Underweight with a $31 target.
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