Nike Inc.
Nike carries a consensus Hold rating, with an average price forecast of $43.75.
Recent analyst actions include RBC Capital cutting its price forecast to $40 from $45 while maintaining a Sector Perform rating. Deutsche Bank lowered its forecast to $37 from $45 and kept a Hold rating, while Piper Sandler cut its forecast to $38 from $45 and maintained a Neutral rating.
Evercore ISI lowered its forecast to $34 from $46 with an In Line rating. Bank of America Securities downgraded Nike to Underperform and cut its forecast to $30 from $47.
Oppenheimer lowered its forecast to $52 from $60 while maintaining an Outperform rating, while Barclays cut its forecast to $48 from $52 and kept an Overweight rating.
RBC Sees Pressure on Revenue, China
RBC Capital Markets warned that the bigger risk may come from the company's outlook rather than its first-quarter results.
Analyst Piral Dadhania said Nike's current-quarter guidance is relatively tight, making a first-quarter miss less likely. However, investors will be focused on what management says about the coming quarters.
RBC expects first-quarter revenue of about $11.2 billion, down 4.3% year over year on a reported basis and 4.7% in constant currency. The firm forecasts diluted earnings of 43 cents per share.
The analyst expects North American revenue to fall 1% in constant currency, while Europe, the Middle East and Africa could decline 5%. Greater China remains the biggest pressure point, with RBC forecasting a 15% drop amid elevated inventories and discounting. Nike Direct revenue is expected to fall 8%.
RBC's first-quarter revenue estimate is about 1% below consensus, while its EBIT forecast is 2% below Wall Street expectations.
RBC also expects Converse revenue to fall 25% in constant currency, saying the brand's turnaround could take time as Nike rightsizes the business and aligns its cost base with weaker sales.
New CFO Could Reset Expectations
The analyst said Nike is making progress against its strategic goals, but the turnaround is taking longer than expected, with weak sell-through and elevated marketplace inventories still weighing on the recovery.
Dadhania said new CFO David Denton could reset expectations ahead of Nike's capital markets day on Nov. 16-17. RBC also expects second-quarter guidance to point to another mid-single-digit revenue decline, even as gross margin improves.
The firm lowered its fiscal 2027 organic revenue growth forecast to a 3.1% decline from a previous 2% drop. RBC also cut its fiscal 2027 EBIT estimate by 3% and reduced its EPS forecast by 4% to $1.66.
Still, RBC sees some signs of improvement. Nike.com traffic has recovered from a low base, while newer products such as Pegasus Premium and Vomero 18 have generated stronger search interest. However, the analyst said marketplace inventories and promotional activity remain key hurdles to a broader recovery.
Nike Earnings Preview
Wall Street expects Nike to report earnings of 44 cents per share, down from 49 cents a year earlier.
Revenue is expected to fall to $11.33 billion from $11.72 billion in the year-ago quarter.
The estimates point to continued pressure on sales and profitability. Investors are likely to focus on gross margins, promotional activity, inventory levels, and management's outlook.
Nike trades at about 17.1 times earnings, putting more emphasis on whether management can show tangible progress in its turnaround.
Nike Has Recently Beat Expectations
Nike has beaten earnings estimates in each of the past four quarters, with an average EPS surprise of about 54%.
In its most recent quarter, Nike reported earnings of 20 cents per share, beating the 13 cents estimate. Revenue of $10.97 billion also beat the $10.86 billion consensus estimate.
In December 2025, Nike reported earnings of 53 cents per share versus estimates of 38 cents. Revenue of $12.43 billion also beat expectations of $12.22 billion.
The recent track record shows Nike has repeatedly cleared Wall Street's lowered expectations. However, with revenue and earnings expected to decline again, investors will likely focus on whether any upside comes from improving demand or mainly from cost controls.NKE Price Action: Nike shares were down 0.18% at $35.77 at the time of publication on Wednesday. The stock is trading near its 52-week low of $35.21, according to Benzinga Pro data.
