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With a market cap of $65.8 billion, NIKE, Inc. (NKE) is a global company that designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids across multiple regions worldwide. It offers products under well-known brands like Nike, Jordan, and Converse, while also providing digital services, sports experiences, and retail platforms.
Shares of the athletic apparel maker have underperformed the broader market over the past 52 weeks. NKE stock has dipped 26.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.6%. In addition, shares of the company are down 32.4% on a YTD basis, compared to SPX’s 5.2% gain.
Focusing more closely, shares of the Beaverton, Oregon-based company have lagged behind the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 16.9% return over the past 52 weeks.
Shares of NIKE tumbled 15.5% following its Q3 2026 results on Mar. 31, with net income dropping 35% to $0.5 billion and EPS declining 35% to $0.35, alongside a 130 basis point contraction in gross margin to 40.2%. Revenue growth was also lackluster at $11.3 billion (flat reported, down 3% currency-neutral), with key segments under pressure, including NIKE Direct revenues falling 4% and Converse revenues plunging 35%.
Additionally, regional declines in EMEA and Greater China, higher tariffs in North America, and rising operating expenses signaled ongoing operational challenges.
For the fiscal year ending in May 2026, analysts expect NKE’s EPS to decline 30.1% year-over-year to $1.51. However, the company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.
Among the 35 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, two “Moderate Buys,” 17 “Holds,” and two “Strong Sells.”
On Apr. 1, Deutsche Bank cut its price target for NIKE to $51 while maintaining a “Hold” rating.
The mean price target of $61.57 represents a 42.9% premium to NKE’s current price levels. The Street-high price target of $120 suggests a 178.5% potential upside.
