NIKE Inc. (NKE) Stock Analysis 2026

Nike is the world's largest athletic footwear and apparel brand, generating $50B+ in annual revenue across 190+ countries. The company designs, develops, and sells athletic shoes (Air Max, Air Jordan, Dunk), apparel, equipment, and accessories under the Nike, Jordan, and Converse brands. Nike is undergoing a significant turnaround under new CEO Elliott Hill after a period of strategic missteps including over-rotation to direct-to-consumer sales, innovation stagnation, and loss of key wholesale partnerships.

This chart shows how NIKE's revenue flows through to profit. Each row deducts a layer of costs: first the direct cost of making products/services (Cost of Revenue), then operating expenses like marketing and R&D, then taxes. What remains at the bottom is net income — the actual profit shareholders own. High gross and net margins indicate a business with strong pricing power and efficiency.

NIKE Inc. trades at a trailing P/E of 18.86x, generates $1.89B in free cash flow, runs a debt/equity ratio of 74.29, and converts shareholder equity into profit at a 22.1% return on equity. For context: P/E ratio measures how much you pay for $1 of earnings (lower = cheaper, but fast-growing companies command higher P/E); Free Cash Flow is the cash left after running the business; Debt/Equity shows how leveraged a company is; Return on Equity shows how efficiently it turns shareholder capital into profit.

36 analysts covering NIKE Inc. currently lean toward a Hold rating, with a mean 12-month price target of $50.52 (+42.3% vs the current price). Analysts set these targets after researching a company's earnings, competitive position, and industry trends — Strong Buy / Buy means the majority expect meaningful upside, while Hold means fair value near the current price rather than a sell signal.

We use 1 valuation model to estimate NKE's intrinsic value. Intrinsic value is what a stock is truly worth based on the company's fundamentals, independent of what the market prices it at today. If multiple models agree the stock is undervalued, that convergence is a stronger signal.

NKE is currently in a death cross pattern, trading below its 50-day average of $41.80 and below its 200-day average of $51.94. Moving averages smooth out day-to-day volatility to reveal the underlying trend — a Golden Cross (50MA crosses above 200MA) is a classic bullish signal, a Death Cross is bearish, though both are lagging indicators that confirm trends rather than predict them.

NKE's investment case breaks down into 4 bull points and 4 bear points below. The bull case outlines the key reasons the stock could outperform — competitive advantages, growth catalysts, and market tailwinds. The bear case highlights the most significant risks. A strong bull case with manageable bear risks typically makes for a more compelling investment.