Nike Stock Plummets to Multi-Year Low After Disappointing Earnings

Nike stock plummeted to its lowest level since early 2014 after the company's fiscal Q1 results were released. Revenue fell 4% to $11.21 billion, and Nike expects revenue to decline by a high-single-digit percentage in fiscal 2027.

Goldman Sachs analyst Brooke Roach cut her price target for Nike from $38 to $30, citing weaker-than-expected guidance for fiscal 2027. She also noted that the company's new Pace transformation plan could weigh on margins and earnings through fiscal 2027 and 2028.

Citi analyst Paul Lejuez said Nike's fiscal Q1 earnings per share of $0.48 came in above expectations, but the beat was driven by lower selling, general, and administrative expenses rather than stronger sales. He also noted that Nike expects revenue to fall below market expectations in fiscal 2027.

Lejuez kept his Hold rating on NKE stock and cut his price target to $32. He does not see a clear reason for the stock to trade at a premium to its growing peers, saying Nike is 'turning into a cost-cutting story.'