BEAVERTON — Nike received multiple analyst downgrades on July 2, 2026, following its fourth-quarter financial results report and updated revenue guidance released on May 31, 2026. Barclays analyst Adrienne Yih cut the price target on Nike stock from $67 to $52, while maintaining an "Overweight" rating.

Other firms also adjusted their price targets for Nike stock. Stifel, Piper Sandler, and UBS each lowered their targets to $45. Telsey Advisory Group reduced its target to $47. Bernstein SocGen Group lowered its price target to $72, while maintaining an Outperform rating on the stock.

Nike reported fourth-quarter earnings per share of $0.72. The company stated that without a one-time $986 million benefit from recovered tariff costs, fourth-quarter earnings per share would have been $0.20. For the full fiscal year, Nike's revenue was flat on a reported basis and decreased 2% on a currency-neutral basis.

The company also guided revenue to fall in the low- to mid-single digits from the fourth quarter of fiscal 2026 through the first half of fiscal 2027. Nike's Greater China revenue decreased 17% on a currency-neutral basis in the fourth fiscal quarter, and profit in that region decreased 20%.

Nike reorganized approximately 8,000 employees into sport-focused teams under an operating model termed Sport Offense. Nike Chief Executive Officer Elliott Hill said, "We made meaningful structural improvements to lay the groundwork for our Sport Offense across our team culture, innovative product, brand strength, and how we serve consumers in our countries and cities."

Within North America, Nike's revenue grew 3% in the fourth fiscal quarter, with wholesale revenue increasing by 10%. Revenue and retail sales with Foot Locker turned positive for the first time in four years. The company's running business posted five consecutive quarters of double-digit growth, adding close to $1 billion in revenue. However, Nike Sportswear and Jordan Streetwear, which together account for approximately half of total revenue, remained in decline. Nike stock traded at $43 on July 2, 2026.

Why It Matters

The analyst downgrades and revised revenue guidance reflect financial and strategic challenges for Nike, alongside a recent organizational restructuring. The decline in key segments such as Greater China revenue and the Sportswear and Jordan Streetwear categories, which represent a large portion of its total revenue, indicate areas requiring focused attention. The company's reliance on a one-time tariff cost benefit to boost its reported earnings per share provides context for its underlying financial performance.

The restructuring into sport-focused teams and positive performance in its running business and North American wholesale revenue demonstrate areas of growth and strategic effort. However, the overall flat to declining revenue for the fiscal year and the forecasted revenue decrease for the upcoming quarters mark a period of adjustment as the company implements its new operating model. The company held approximately $9 billion in cash and short-term investments and reported total assets of $38.4 billion with total liabilities of $23.5 billion as of May 2026.