Nike Stock Jumps 11% on Earnings Beat – Analysts Raise Target’s, Obstacles Remain

Nike's stock price (NYSE: NKE) has jumped more than 11% in extended hours, trading at $69.56, as a stronger-than-expected earnings report has finally given bulls something to bite into. Analysts have been quick to revise their price targets upwards, however, beneath the surface of this earnings victory lies a complex narrative.

The headline figures tell a tale of resilience. Nike posted adjusted earnings per share of $0.14, surpassing the consensus estimate of $0.13. Revenue also exceeded expectations, coming in at $11.1 billion against estimates of $10.72 billion.

Same-store sales at Nike-owned locations rose by 2%, defying analyst predictions of a decline. This positive performance offered a welcome respite from a challenging year, where Nike shares have struggled, down 15% year-to-date and a significant 33.6% over the past 12 months leading into the print.

Despite the earnings beat, a closer examination reveals the complexities facing the company. While the Q4 2025 EPS of $0.14 beat estimates, it represents a significant drop from the $1.01 per share reported a year ago. This stark contrast underscores the impact of strategic product supply reductions and ongoing market challenges.

Furthermore, CEO Elliott Hill acknowledged past missteps, stating that the company “lost our obsession with sport” and is now refocusing on athletic performance and strengthening relationships with wholesale partners through the “Win Now” strategy.

Nike's recent performance must be viewed within the context of broader market pressures. The company continues to navigate a complex global landscape impacted by tariffs and cautious consumer behavior. The company projects a $1 billion hit from tariffs if current levels persist, adding to the challenges of regaining market share from competitors.

Notably, Nike has faced significant sales declines in key product lines and regions, including a 17% drop in revenue in China, highlighting the need for strategic adjustments in these critical markets.

Looking ahead, Nike anticipates a mid-single-digit percentage decline in first-quarter revenue, attributing this to strategic product supply reductions and ongoing market challenges. CFO Matthew Friend emphasized that the fourth quarter “reflected the largest financial impact” from the company's turnaround efforts, with expectations for revenue declines to moderate in the coming quarters. For the next quarter, analysts forecast earnings of $0.29 per share and revenue of $10.97 billion.

Analysts' price targets have shifted notably, with some of the key changes listed below in order from new high target. In brackets is the previous target, with the current rating listed :

• Baird – $88 ($80) – Outperform
• Truist – $85 ($73) – Buy
• BofA – $84 ($80) – Buy
• HSBC – $80 ($60) – Hold
• Piper Sandler – $80 ($70) – Overweight
• Citi – $68 ($57) – Neutral
• JPMorgan – $64 ($56) – Neutral
• Barclays – $64 ($53) – Equal Weight
• Morgan Stanley – $64 ($61) – Equal Weight
• UBS – $63 ($56) – Neutral