Nike Stock Extremely Bullish after Q4 Results Show Promise

Nike stock is one of the top performing stocks today after a surprisingly positive quarterly report was released.

Nike stock is exceeding expectations as they beat sales estimates.

Quick overview

  • Nike's stock surged nearly 15% following a strong 4th quarter earnings report that exceeded revenue and EPS estimates.
  • The company reported $11.10 billion in revenue, surpassing expectations of $10.72 billion, and achieved an EPS of 14 cents against an estimate of 13 cents.
  • Despite a projected 7% sales decline for the current quarter due to tariffs, Nike is implementing strategies to mitigate losses and maintain stock value.
  • Investors reacted positively to Nike's future plans, making it one of the best-performing stocks on Friday.

In premarket trading, Nike (NKE) was up by almost 9%, but then it soared to an increase of 15% as trading opened in earnest, lifted by its recent 4th quarter earnings report.

Nike stock is climbing rapidly after a promising quarterly report.
Nike stock is climbing rapidly after a promising quarterly report.

Nike performed better than expected during its 4th quarter, beating earnings estimates with $11.10 billion in revenue for the period. That beat out the estimated $10.72 billion for the quarter. The company also beat estimates for earning per share of 13 cents with an actual 14 cents EPS.

Their net income during that three month period was $211 million, which surprised investors after Nike had warned that this quarter would be their lowest for the fiscal year. They were correct, but the news was not as dire as expected, with a sales drop of 12% from the previous year when they brought in $12.61 billion.

Nike Sets Sales Expectations for Current Quarter

Nike expects to take quite a hit from tariffs for the fiscal 2026 year, losing about $1 billion thanks to the new tariff that Donald Trump’s administration has put in place. However, the company is trying to mitigate those losses with an extensive plan that includes supply chain negotiations. The company will also work with its partners in retail and raise some prices to fully cover the cost of tariffs.

For the current quarter, Nike anticipates approximately a 7% sales decline. Their strong plan for keeping costs low and mitigating losses has helped them turn around their stock value. The stock dropped initially after the quarterly report was released, but then it shot up after the company conducted a conference call and laid  out their plans for the future.

If Nike’s plans hold, the company will be better positioned over the long term to handle further sales decline, even if their profits may be smaller in the short term as a result of the change they are putting into effect. Their investors appear to agree, as Nike is one of the best performing stocks for Friday.

 

 

ABOUT THE AUTHOR See More
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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