Nike’s Turnaround Hits a Speed Bump on Disappointing Fiscal 2027 Guidance. Should Investors Run for the Exits?

NKE fell nearly 9% after hours as weak fiscal 2027 guidance overshadowed an earnings beat in Q1.

Nike beat earnings expectations but missed on revenue. Sales dropped 4% year over year to $11.21 billion. The miss on the top line is what traders are pricing, because the outlook offers little relief.

Management guided to high-single-digit revenue declines for the full year. GAAP earnings guidance of $1.00 to $1.20 per share compares with $2.10 in fiscal 2026, a drop of roughly 43% to 52% at the range endpoints (our math). That puts the earnings trajectory moving sharply lower, not stabilizing.

Greater China fell 22%, and DTC channels also showed weakness. CEO Elliott Hill's turnaround effort has moved slowly, and the guidance suggests no near-term inflection. Analysts cited in the source argue the valuation remains unattractive given the company's growth struggles. In our interpretation, a stock priced for recovery now faces a guide that pushes recovery further out.