Nike Rockets After Earnings: Is This the Perfect Buy-In Moment?
Investors Cheer Strong Q4 Results
Nike (ticker NKE) shares surged an impressive 15% intraday on Friday after the athletic giant beat expectations for both profit and revenue in its fiscal Q4, then delivered an upbeat outlook. Despite reporting revenues of $11.1 billion (down around 12% YoY), the decline was less steep than anticipated, signaling a stabilizing sales trend.
Tariff Strategy and Production Shift Pay Off
Nike forecast a $1 billion tariff cost hit this fiscal year but surprised investors by outlining bold steps: raising U.S. prices, shifting production away from China (current exposure ~16% expected to fall below 10% by FY2026), and diversifying its supply chain.
Analysts Upgrade Nike, Predict More Upside
Following the results, HSBC and Jefferies upgraded Nike to “Buy” (HSBC lifted its price target from $60 to $80), while JPMorgan boosted its target to $94. Most analysts now see a recovery phase unfolding, with a “turnaround story in motion.”
Broad Market Ripple Effects
Nike’s momentum lifted peers such as Adidas, Puma and JD Sports, helping push the Dow, S&P 500 and Nasdaq to new highs — a sign that finally, the long-discussed “bottom” might be behind us.