NIKE (NKE) Stock Forecast & Price Target

Nike, as the largest athletic footwear and apparel brand globally, demonstrates a positive outlook driven by strong revenue projections and operational improvements, particularly in its running business, which has grown over 20% in recent quarters. The company anticipates a recovery in long-term operating margins, targeting over 12% as opposed to the current 6.5%, alongside potential earnings growth to approximately $3.50 by FY28. Furthermore, consistent interest in popular product lines, evidenced by increased search trends and positive indicators in the wholesale sector, reinforces expectations of continued financial momentum.

Nike is experiencing projected total revenues of $12.2 billion for 2Q26, indicating a 1% decline compared to the previous year, largely influenced by reduced digital traffic and lower promotions. The company anticipates a gross margin contraction of 300-375 basis points year-over-year, primarily due to liquidation activities and tariffs, alongside anticipated operating margin pressure resulting in a decline of 550 basis points to 5.7%. In constant currency terms, revenue growth is expected to decline across key markets, particularly in China, which is projected to decrease by 7%, further highlighting challenges in achieving top-line growth during FY26.