Can Nike Just Do It? Analyst Says Turnaround Progress Is Real, but Too Slow
Nike Inc. (NYSE: NKE ) faces a more cautious Wall Street setup ahead of its fiscal first-quarter earnings report on Oct. 1, with several analysts cutting their price forecasts in recent days. 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
Nike Inc. (NYSE: NKE ) faces a more cautious Wall Street setup ahead of its fiscal first-quarter earnings report on Oct. 1, with several analysts cutting their price forecasts in recent days. 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.
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. See More: Top Value Stocks 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. 1% decline from a previous 2% drop.
66. Still, RBC sees some signs of improvement. 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. 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.
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. 86 billion consensus estimate.
In December 2025, Nike reported earnings of 53 cents per share versus estimates of 38 cents. 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.
77 at the time of publication on Wednesday. 21, according to Pro data. Photo via Shutterstock Read Also: Nike Stock Has Become Oversold. Will Upcoming Earnings Lead to a Reversal?