Zacks Research Issues Pessimistic Outlook for NIKE Earnings

Key Points

• Zacks Research turned more bearish on NIKE, cutting its Q1 2027 EPS estimate to $0.44 from $0.46 and maintaining a Strong Sell rating. The firm also projected softer earnings across several future quarters and years.
• Analyst sentiment remains cautious overall, with multiple firms trimming price targets or downgrading the stock. MarketBeat data shows NIKE’s consensus rating is Hold, with an average target price of $53.86.
• NIKE continues to face operating headwinds despite beating recent quarterly expectations, as revenue still declined 1.1% year over year. The article also highlights broader concerns around weaker consumer demand, tariff pressure, and competitive issues in China.

NIKE, Inc. (NYSE:NKE - Free Report) - Equities research analysts at Zacks Research reduced their Q1 2027 EPS estimates for shares of NIKE in a research note issued to investors on Tuesday, July 21st. Zacks Research analyst Team now expects that the footwear maker will post earnings of $0.44 per share for the quarter, down from their previous estimate of $0.46. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for NIKE's current full-year earnings is $1.74 per share. Zacks Research also issued estimates for NIKE's Q2 2027 earnings at $0.56 EPS, Q3 2027 earnings at $0.42 EPS, Q4 2027 earnings at $0.27 EPS, FY2027 earnings at $1.69 EPS, Q1 2028 earnings at $0.51 EPS, Q3 2028 earnings at $0.47 EPS, FY2028 earnings at $2.11 EPS and FY2029 earnings at $2.63 EPS.

Several other analysts have also weighed in on the company. Rothschild & Co Redburn decreased their price objective on NIKE from $45.00 to $37.00 and set a "sell" rating on the stock in a report on Friday, July 17th. Telsey Advisory Group set a $47.00 target price on NIKE and gave the company a "market perform" rating in a research note on Wednesday, July 1st. HSBC cut NIKE from a "buy" rating to a "hold" rating and reduced their target price for the stock from $90.00 to $48.00 in a research report on Monday, April 13th. Piper Sandler decreased their price target on shares of NIKE from $50.00 to $45.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 1st. Finally, Truist Financial lowered their price target on shares of NIKE from $69.00 to $57.00 and set a "buy" rating on the stock in a report on Wednesday, April 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nineteen have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, NIKE has a consensus rating of "Hold" and a consensus target price of $53.86.

NIKE Trading Down 1.1%

Shares of NKE opened at $42.99 on Wednesday. The stock's 50-day moving average price is $43.70 and its 200 day moving average price is $51.52. The company has a quick ratio of 1.36, a current ratio of 1.96 and a debt-to-equity ratio of 0.40. The firm has a market capitalization of $63.66 billion, a price-to-earnings ratio of 20.57, a P/E/G ratio of 1.92 and a beta of 1.12. NIKE has a 12-month low of $40.00 and a 12-month high of $80.17.

NIKE (NYSE:NKE - Get Free Report) last released its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The business had revenue of $10.97 billion during the quarter, compared to analysts' expectations of $10.85 billion. During the same quarter last year, the company earned $0.14 earnings per share. The firm's revenue was down 1.1% on a year-over-year basis.

Hedge Funds Weigh In On NIKE

Several institutional investors have recently added to or reduced their stakes in the company. Main Street Financial Solutions LLC lifted its stake in NIKE by 4.2% during the 2nd quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker's stock valued at $244,000 after acquiring an additional 139 shares in the last quarter. Diligent Investors LLC grew its stake in shares of NIKE by 4.3% in the 4th quarter. Diligent Investors LLC now owns 3,719 shares of the footwear maker's stock worth $237,000 after acquiring an additional 153 shares in the last quarter. Massachusetts Financial Services Co. MA grew its stake in shares of NIKE by 4.3% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,978 shares of the footwear maker's stock worth $253,000 after acquiring an additional 163 shares in the last quarter. Lakeshore Capital Group Inc. raised its holdings in shares of NIKE by 2.9% in the fourth quarter. Lakeshore Capital Group Inc. now owns 5,868 shares of the footwear maker's stock valued at $374,000 after purchasing an additional 165 shares during the last quarter. Finally, ANB Bank raised its holdings in shares of NIKE by 0.7% in the fourth quarter. ANB Bank now owns 25,451 shares of the footwear maker's stock valued at $1,621,000 after purchasing an additional 165 shares during the last quarter. 64.25% of the stock is owned by institutional investors.

Insider Activity at NIKE

In other news, EVP Philip Mccartney sold 17,398 shares of the business's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $46.18, for a total value of $803,439.64. Following the sale, the executive vice president owned 53,133 shares in the company, valued at approximately $2,453,681.94. The trade was a 24.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 1.10% of the company's stock.

NIKE Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st were issued a dividend of $0.41 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.8%. NIKE's dividend payout ratio (DPR) is presently 78.47%.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE is shifting China online sales toward its own website/app and official storefronts on Tmall, JD.com, and Douyin, which could strengthen pricing power, reduce discounting, and improve control over the customer experience. Nike Ends China Online Distribution Deal in Strategy Shift
• Positive Sentiment: The restructuring suggests NIKE is trying to fix a “cluttered” marketplace in China by funneling demand through official channels, which could help rebuild brand positioning and support long-term sales quality. Nike to tighten online sales in China amid 'cluttered' marketplace
• Neutral Sentiment: Analysts and commentary pieces continue to frame NIKE’s turnaround around innovation, retail execution, and brand reset efforts, but these are longer-term themes rather than immediate catalysts. NIKE's Innovation Pipeline: Can New Products Spark Demand?
• Negative Sentiment: The China changes also signal that NIKE is trying to defend a weakened position in its third-largest market, where domestic competitors have been gaining ground and growth has been under pressure. Nike stock in focus: why is it cutting thousands of China sellers?
• Negative Sentiment: Recent articles also highlight broader headwinds for NIKE (NKE), including flat revenue growth, weaker consumer demand, and tariff pressure on margins, which help explain why the stock has remained under pressure. Why Nike Stock Lost 36% in the First Half of 2026

NIKE Company Profile

Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.