📊 NKE Key Takeaways
Is NIKE, Inc. (NKE) a Good Investment?
Nike faces significant operational headwinds with revenue declining 9.8% YoY and net income plummeting 43.5% YoY, indicating both top-line weakness and margin compression. While the company maintains a solid balance sheet with strong liquidity (2.06x current ratio) and modest leverage (0.50x debt/equity), deteriorating profitability metrics and weak free cash flow generation (1.7% FCF margin on declining revenues) suggest the company is struggling with fundamental business challenges rather than temporary cyclical pressures.
NIKE's fundamentals show a clear deterioration in growth and earnings quality, with revenue down 9.8%, net income down 43.5%, and free cash flow compressed to just 1.7% of sales. However, the balance sheet remains sound, with strong liquidity, manageable leverage, and cash roughly matching long-term debt, which supports resilience while profitability is being rebuilt.
Why Buy NIKE, Inc. Stock? NKE Key Strengths
- Strong balance sheet with $7.0B cash position and manageable debt load
- Healthy liquidity ratios (current ratio 2.06x, quick ratio 1.83x) provide operational flexibility
- Gross margin of 41.4% remains respectable despite revenue pressures, indicating brand pricing power
- Strong liquidity with a 2.06x current ratio and 1.83x quick ratio
- Manageable leverage with debt-to-equity of 0.50x and cash of $6.97B against $7.02B long-term debt
- Still-profitable business with 41.4% gross margin and positive free cash flow
NKE Stock Risks: NIKE, Inc. Investment Risks
- Sharp revenue decline of 9.8% YoY signals demand weakness or market share losses
- Net income collapsed 43.5% YoY with EPS down 42.1%, indicating severe margin deterioration beyond revenue decline
- Weak free cash flow of $401M on $24.1B revenue (1.7% FCF margin) limits financial flexibility and dividend capacity
- Operating margin compression to 8.0% reflects operational efficiency challenges
- Revenue contraction of 9.8% YoY indicates weakening top-line momentum
- Sharp earnings pressure, with net income down 43.5% and EPS down 42.1% YoY
- Cash generation is weak relative to revenue, with only $801M operating cash flow and a 1.7% free cash flow margin
Key Metrics to Watch
- Revenue trend reversal and same-store sales growth
- Gross margin stabilization and operating leverage recovery
- Free cash flow expansion and cash conversion cycle improvement
- Operating margin recovery and net income trend
- Operating cash flow and free cash flow margin
NIKE, Inc. (NKE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.7% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.06x current ratio provides a solid financial cushion.
NKE Profit Margin, ROE & Profitability Analysis
NKE vs Materials Sector: How NIKE, Inc. Compares
How NIKE, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NIKE, Inc. Stock Overvalued? NKE Valuation Analysis 2026
Based on fundamental analysis, NIKE, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NIKE, Inc. Balance Sheet: NKE Debt, Cash & Liquidity
NKE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NIKE, Inc.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.23 reflects profitable operations.
NKE Revenue Growth, EPS Growth & YoY Performance
NKE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $11.3B | $520.0M | $0.35 |
| Q2 2026 | $12.4B | $792.0M | $0.53 |
| Q1 2026 | $11.6B | $727.0M | $0.49 |
| Q3 2025 | $11.3B | $794.0M | $0.54 |
| Q2 2025 | $12.4B | $1.2B | $0.78 |
| Q1 2025 | $11.6B | $1.1B | $0.70 |
| Q3 2024 | $12.4B | $1.2B | $0.77 |
| Q2 2024 | $13.3B | $1.3B | $0.85 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NIKE, Inc. Dividends, Buybacks & Capital Allocation
NKE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NIKE, Inc. (CIK: 0000320187)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NKE
What is the AI rating for NKE?
NIKE, Inc. (NKE) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NKE's key strengths?
Claude: Strong balance sheet with $7.0B cash position and manageable debt load. Healthy liquidity ratios (current ratio 2.06x, quick ratio 1.83x) provide operational flexibility. ChatGPT: Strong liquidity with a 2.06x current ratio and 1.83x quick ratio. Manageable leverage with debt-to-equity of 0.50x and cash of $6.97B against $7.02B long-term debt.
What are the risks of investing in NKE?
Claude: Sharp revenue decline of 9.8% YoY signals demand weakness or market share losses. Net income collapsed 43.5% YoY with EPS down 42.1%, indicating severe margin deterioration beyond revenue decline. ChatGPT: Revenue contraction of 9.8% YoY indicates weakening top-line momentum. Sharp earnings pressure, with net income down 43.5% and EPS down 42.1% YoY.
What is NKE's revenue and growth?
NIKE, Inc. reported revenue of $24.1B.
Does NKE pay dividends?
NIKE, Inc. pays dividends, with $1,189.0M distributed to shareholders in the trailing twelve months.
Where can I find NKE SEC filings?
Official SEC filings for NIKE, Inc. (CIK: 0000320187) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NKE's EPS?
NIKE, Inc. has a diluted EPS of $1.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NKE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NIKE, Inc. has a SELL rating with 77% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NKE stock overvalued or undervalued?
Valuation metrics for NKE: ROE of 10.8% (sector avg: 14%), net margin of 6.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NKE stock in 2026?
Our dual AI analysis gives NIKE, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NKE's free cash flow?
NIKE, Inc.'s operating cash flow is $801.0M, with capital expenditures of $400.0M. FCF margin is 1.7%.
How does NKE compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.3% (avg: 10%), ROE 10.8% (avg: 14%), current ratio 2.06 (avg: 1.6).