Nike (NKE) Reports Over $46 Billion Revenue in FY2025 Amid 55% Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Revenue Performance: Nike generated over $46 billion in revenue for fiscal 2025, despite a 9.8% year-over-year decline, reflecting pressures from weak market demand that have impacted investor confidence.
- Earnings Decline: The company reported diluted earnings per share (EPS) of $2.16 for FY2025, a 42% year-over-year drop, with a further 28% decline expected in FY2026 due to high tariffs and promotional activities in China.
- Brand Strength: Despite challenges, Nike's gross margin remained at 40.6% in Q2 2026, indicating its pricing power and brand influence, with management focusing on product innovation to drive customer excitement.
- Investment Risks: With a 55% stock price decline over the past five years, Nike's strong brand is overshadowed by weak fundamentals, making it less appealing as a buy-and-hold stock, prompting investors to proceed with caution.
Analyst Views on NKE
Wall Street analysts forecast NKE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NKE is 85.60 USD with a low forecast of 68.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
19 Buy
9 Hold
0 Sell
Moderate Buy
Current: 65.570
Low
68.00
Averages
85.60
High
120.00
Current: 65.570
Low
68.00
Averages
85.60
High
120.00
About NKE
NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
