Why Nike Stock Just Crashed

NKE fell 5.4% after Nike's Q1 fiscal 2027 report delivered an earnings beat but a revenue miss and a deep guidance cut. The guide, not the quarter, is what drove the selling.

The numbers: Earnings came in at $0.48 per share versus $0.44 expected, a beat of $0.04. Revenue landed at $11.21B against a $11.35B consensus, a $140M shortfall. Management then guided full-year earnings to $1.00-$1.20 per share, which implies a decline of nearly 50%.

What drove the outlook: Sales declined in China and Europe, two regions the company flagged in explaining the weak forecast. Direct-to-consumer Nike Digital sales dropped 8%, adding pressure to the top line.

Interpretation: The earnings beat was small, and the market looked past it. A near-50% projected earnings decline, paired with a revenue miss and falling sales in multiple regions, suggests investors are pricing a prolonged recovery rather than a one-quarter stumble. The 8% digital decline also removes a growth channel that might otherwise have offset weakness elsewhere.