Nike Downgraded to 'Hold' After Weaker Than Expected Revenue

Nike's stock has been downgraded to 'hold' by research analysts at Williams Trading, following a series of recent ratings and price target adjustments. The downgrade comes as Nike's revenue falls 4.3% year over year to $11.21 billion in its fiscal Q1 results.

The company's earnings per share (EPS) beat analyst estimates, coming in at $0.48 compared to the expected $0.43. However, management expects a high-single-digit percentage decline in revenue for fiscal 2027 and provided EPS guidance of $1.15-$1.35.

Several firms have reduced price targets on Nike's stock, including Citi to $32 and JPMorgan to $33, with neutral or underweight ratings. The company has been launching restructuring programs aimed at simplifying operations and supporting performance categories, which will include further job cuts extending into 2027.