Nike shares tumbled 3.6% in pre-market trading, slipping to $39.55 as investors reacted to a conservative fiscal 2027 revenue outlook that outweighed an otherwise solid fourth-quarter performance. Management said revenues are likely to decline through the first half of the new fiscal year, citing an increasingly challenging operating environment and continued pressure on consumer sell-through.
For Q4 FY2026, Nike reported revenue of $11.0 billion, outpacing the consensus estimate of roughly $10.85 billion. Adjusted earnings per share came in at $0.20, beating the expected $0.12. However, the headline EPS of $0.72 was significantly elevated by a one-time $0.52 benefit tied to the expected recovery of IEEPA tariffs, a gain that obscures the underlying earnings trend.
Regional performance raised further red flags. Greater China was singled out as a particular source of weakness, with sales down 17% on a constant-currency basis in the quarter. That decline accelerates from the 10% fall recorded in the prior quarter. Management indicated that China trends are expected to remain broadly at that level going forward, signaling limited near-term improvement in the region.
Adding to investor unease, Chief Financial Officer Matthew Friend will depart after 18 years with the company. He is set to be replaced by an executive from Pfizer, a transition that introduces leadership uncertainty at a sensitive moment in Nike’s turnaround effort.
Analysts had already been adjusting expectations ahead of the report. JPMorgan lowered its price target on the shares to $47 from $52 prior to the print, while maintaining a Neutral rating.
The broader market environment provided mixed context for Nike’s weakness. U.S. equity futures were broadly lower at the open as markets awaited remarks from Federal Reserve Chair Kevin Warsh at a European Central Bank panel in Portugal. Despite that caution, major indexes showed gains on the session: the S&P 500 remained near multi-year highs, up 0.8%, and the Nasdaq had gained 1.5%, suggesting that Nike’s move was largely company-specific rather than driven by a broad market sell-off.
Taken together, the elements pressuring the stock are clear: a soft FY2027 revenue outlook, accelerating deterioration in Greater China demand, an accounting benefit that inflated headline earnings, and the departure of a long-tenured CFO. Those factors pushed Nike shares toward their 52-week low of $40.00, with the pre-market price of $39.55 marking a new multi-year trough for the sporting goods giant.
Bottom line: Nike’s quarterly beat did little to offset investor concern generated by cautious forward guidance, a tariff-driven earnings boost that masked core results, deepening weakness in China, and a notable CFO transition. The combination has driven the stock to fresh lows despite a broadly resilient market session.