Nike Inc

NIKE paired softer first quarter results with a warning that fiscal 2027 revenue is expected to decline in the high single digits. The stock fell 3.64% on the day of the update and is down 11.80% over the past month and 46.48% year to date, with a 1 year total shareholder return decline of 51.36%. The most followed valuation narrative pegs fair value at $36.83, a touch above the latest close at $33.87, implying the shares are 8% undervalued. NIKE runs with an operating margin above the roughly 10% mark and projects revenue growth of about 3% over the next couple of years, slightly below the broader economy. The revenue reset guidance and the 51.36% one-year total return decline leave little room for disappointment if NIKE stumbles again on demand or margins.

Morgan Stanley cut its Nike price target to 27 from 31, with analyst Alex Straton saying the company's first quarter is likely this year's high watermark rather than the low. Straton, who went underweight on the stock late last year, said Nike's guidance embeds a high single digit sales decline and that reaching full-year targets requires both top-line and earnings trends to degrade from here. She attributed the pressure to excess inventory in North America and a similar dynamic in China, the two biggest sportswear markets in the world, compounded by a challenging macro backdrop. Straton flagged three problem areas for the company: Sportswear, which makes up almost two-thirds of the portfolio and roughly 30 billion dollars in revenue, the Jordan brand, and a material change in the China outlook. She said she has not seen the bottom in negative revisions and that Nike may face a shrink-to-grow story, with further de-rating possible if the company settles into a lower-growth, lower-margin multiple. Nike holds an investor day in November, where Straton said the company needs to clarify the right revenue size for Sportswear, Jordan and China before investors can gauge when growth and historical margins might return.

Nike shares fell 5.5% in the morning session after the athletic apparel brand reported a 4% sales decline and issued weaker-than-expected full-year profit guidance. The company guided fiscal 2027 revenues to decline by high single digits and estimated adjusted diluted earnings per share between $1.15 and $1.35, missing analyst expectations of $1.68 per share amid product challenges and an ailing China business. For calendar Q3 2026, which is fiscal Q1 2027, sales fell 4.3% year on year to $11.21 billion, short of revenue expectations, while GAAP profit of $0.48 per share came in 9.9% above analysts' consensus estimates and gross margin expanded 60 basis points to 42.8% on lower logistics costs. Chief Financial Officer Dave Denton warned on the call that China's revenue will worsen for the balance of the year as Nike cleans up promotional distribution, and Chief Executive Officer Elliott Hill said deliberately reducing Dunk production by nearly half created a roughly $200 million headwind in Sportswear. Denton also noted that the bulk of savings from the Pace operating model transformation, which targets approximately $2.5 billion in cumulative savings through fiscal 2031, will not ramp until fiscal 2029 and 2030.

Nike reported first-quarter revenue slipped 5% on a currency-neutral basis to $11.2 billion, with management guiding the full year to a high single-digit decline. The performance portfolio grew high single digits, and would have grown low double digits without the China reset, as running, global football, tennis and golf all posted double-digit gains, while sportswear, just under half of revenue, fell into the low double digits and Jordan Brand, at 13% of the business, fell by the mid-teens. China revenue dropped 26% to $1.18 billion, Converse sank 28% to $263 million, and Nike Direct fell 9% with its digital arm down 13%. Gross margin improved 60 basis points to 42.8% and SG&A fell 3% to $3.9 billion, while the company unveiled a restructuring program called Pace targeting roughly $2.5 billion in savings for about $1 billion in costs, with most of the benefit arriving in fiscal 2029 and 2030. Adjusted earnings per share of $1.15 to $1.35 for the year exclude about $0.15 of Pace costs, and management warned the resets could spill into fiscal 2028, with the next catalyst set for the November Investor Day.

Corporate upheaval and strategic announcements drove sharp moves in several stocks this week. MongoDB plunged 18.5% on Monday and is on course to end the week down around 14.7% after President and CEO Chirantan Desai resigned with immediate effect to lead a new AI initiative at Meta Platforms; former chief executive Dev Ittycheria returns as interim CEO, and the company reaffirmed its third-quarter and full-year guidance. Synopsys surged 12.8% on Thursday and has gained around 9.2% over the week after setting long-term targets at its 2026 Investor Day in New York, projecting fiscal 2027 revenue of $11.1 billion to $11.2 billion, roughly 15% growth at the midpoint, non-GAAP earnings of $19.04 to $19.12 per share, free cash flow of around $3.1 billion, and plans to repurchase approximately $1 billion of stock, alongside a partnership with OpenAI on GPT-Synopsys and a multi-year IP agreement with Amazon. Mattel jumped 18.8% on Thursday and is on course to close the week up 13.6% after The Wall Street Journal reported that Authentic Brands Group has approached the toy maker with an offer that could value it at more than $20 per share, or around $6 billion or more. Nike fell 5.3% over the week to its lowest level since 2013 after mixed fiscal first-quarter results, with adjusted earnings of 48 cents per share topping expectations of 44 cents but revenue of $11.21 billion missing estimates of $11.35 billion and falling 5% on a currency-neutral basis. Fair Isaac is down 22.7% for the week after Bloomberg reported that the Federal Housing Finance Agency plans to require lenders to use credit data from only two of the three major bureaus for mortgages sold to Fannie Mae and Freddie Mac.

Tesla shares rose 5% after the electric vehicle maker reported third-quarter deliveries of 486,532 vehicles, above the 461,100 units expected by analysts polled by FactSet. Broadcom rose more than 3% after Reuters reported it agreed to lend Anthropic up to $42 billion to finance infrastructure purchases, with investment banks seeking to raise $42 billion of Class A senior secured debt and $18 billion in Class B debt, according to Bloomberg. Nike fell almost 6% after its fiscal first-quarter revenue missed analyst expectations, with a 4% slide in sales tied to declines in China and plans to lay off staff in 2027. Synaptics surged 14% and ON Semiconductor rose more than 5% after ON Semi revised its buyout offer for Synaptics to $123 a share, or $5.7 billion. Seagate and Western Digital each tumbled 13% following a Nikkei report that Japan's Toshiba will double its hard disk drive production capacity for data centers and invest $380 million to expand facilities in the Philippines.

Nike Inc. is cutting jobs and embarking on a sweeping overhaul of the business as results deteriorate and test Wall Street's patience with Chief Executive Officer Elliott Hill. Sportswear, roughly 50% of Nike's business, is still down, Jordan is down, and China plunged 26% in the latest quarter, according to Bloomberg Intelligence senior US e-commerce and retail analyst Poonam Goyal. Goyal credited Hill with fixing North America and the performance business, which grew high single digits in the latest fiscal quarter, but said the turnaround will take more than 12 months and that investors will hear more at the analyst meeting in November. Nike already has a 2.5 billion dollar cost-savings plan in place that carries 1 billion dollars in restructuring costs, she said, adding that the remaining problem is product-led. Jordan, which Goyal said is 13% of Nike's sales and a 7 billion dollar business, suffered from flooding the marketplace with retro product, eroding the exclusivity, selection and scarcity that make the brand work.

Nike is cutting jobs and overhauling its business under a restructuring plan aimed at saving $2.5 billion over the next five years, and now expects a high-single-digit revenue decline this year, worse than the 2.4% drop analysts projected. Shares of Nike fell as much as 9.7% in New York on Friday. Broadcom's Wall Street syndicate has begun gathering $60 billion of fresh AI chip financing to benefit Anthropic and other companies. Fair Isaac Corp. shares rose after it launched the FICO Mortgage Direct License Program, with Bill Pulte signaling he was not purposefully targeting the company.

Robinhood has launched round-the-clock weekend trading in US equities, becoming the first brokerage to offer a 24/7 individual-stock product, while Disney is preparing a third round of layoffs in its television division. Robinhood CEO Vlad Tenev said the platform already offers continuous equity trading in about 2,000 US equities from Sunday 8 p.m. Eastern to Friday 8 p.m. Eastern, and that extending coverage through the weekend lets holders hedge when news breaks. The Walt Disney layoff plan, reported by The Wall Street Journal, drew no comment from the company, and Yahoo Finance's Brian Sozzi said cost-cutting under new CEO Josh D'Amaro makes further reductions likely as advertising pressure and high operating expenses squeeze the TV and sports businesses. The developments came as Nike posted a weak quarter, with brand sales down 4%, online sales down 13%, Converse sales down 28% and Greater China sales down 26%, and signaled more layoffs ahead. Nike guided to high-single-digit sales declines in fiscal 2027 and earnings of $1.15 to $1.35 a share against a Yahoo Finance estimate of $1.66. Sozzi also spoke with Dirty Jobs host Mike Rowe, who warned that a shortage of skilled trades workers will be the pinch point for a coming infrastructure buildout.

Nike's fiscal first quarter results disappointed, and CEO Elliott Hill's remarks on the earnings call left Yahoo Finance Executive Editor Brian Sozzi expecting the business to struggle for another two years. Sozzi called the situation one of the worst meltdowns he has seen in retail in some time, though he noted the company remains profitable and still has lots of sales. He outlined four areas Nike must focus on to follow through on its turnaround plan: sell Converse, stop selling sneakers everywhere to restore exclusivity, stop dragging its feet on cost cuts, and tell an AI story to an AI investing world. On cost cuts, Sozzi said Hill is likely to enact a large amount of layoffs soon, with a first wave possibly before year end, and pointed to the company's new CFO who cut a lot of costs at his prior company. He also noted Nike's online business was down 13%, saying AI is not helping the business at all.

The U.S. economy added only 29,000 non-farm payrolls in September, far below the 90,000 economists had expected, while the unemployment rate ticked up to 4.2% and average hourly earnings rose just 0.11%. Prior months were revised sharply lower, with July cut by 31,000 to minus 10,000 and August reduced by 29,000 to 133,000, a combined downward revision of almost 60,000 jobs. Allianz chief economic adviser Mohamed El-Erian said the report was weak across the board on labor demand, though he called a rise in the labor force participation rate to 61.8% encouraging on the supply side, and said the data will keep the Federal Reserve on hold in October. Within the report, goods-producing and private service-providing sectors showed strength, with construction adding 11,000 jobs and healthcare 17,000, while government shed 17,000 positions and manufacturing added 9,000, a slowdown from 15,000 the prior month. Separately, Nike posted a disappointing outlook for fiscal 2027, expecting a high single-digit revenue decline this year, worse than the 2.5% the Street expected, and said restructuring would save about $2.5 billion, while Tesla reported roughly 486,500 third-quarter deliveries, topping estimates of 463,000.

Nike shares fell more than 10% in premarket trading after the company missed revenue expectations against LSEG consensus for its fiscal first quarter, reporting sales down 4% on declines in its China business and announcing plans to lay off staff in 2027. Synaptics shares jumped over 14% and ON Semiconductor shares rose more than 7% following reports that ON Semiconductor will acquire Synaptics for $123 per share in cash, a transaction now valued at $5.7 billion, down from the prior agreement of $7 billion. Nexalin Technology shares dropped over 18% premarket after the medical device company announced a 10-year distribution and manufacturing deal with Inovanexa Medical Technologies on Thursday, clearing its Nexalin Sync neurostimulation device for distribution across seven South American countries. Vylor shares gained slightly after the seeds and genetics company was added to the S&P 500 on Thursday, following its spinoff from Corteva, which will move to the S&P MidCap 400. Seagate Technology and Western Digital shares fell over 11% and 8% respectively after a Nikkei report that Toshiba will double its production capacity for data-center hard disk drives and invest $380 million to expand facilities in the Philippines.

Nike tumbled 9.6% in premarket trading to $31.79 after the athletic footwear and apparel giant reported mixed fiscal first-quarter 2027 results and issued a weaker-than-expected full-year outlook. Nike reported adjusted earnings of 48 cents per share, topping the 44-cent consensus estimate, but revenue of $11.21 billion missed expectations of $11.35 billion and declined 5% on a currency-neutral basis from a year earlier. Synaptics surged 13.8% in premarket trading after onsemi and Synaptics amended their merger agreement, converting the transaction from an all-stock deal into an all-cash acquisition at $123 per share, valuing Synaptics at about $5.7 billion. The change followed an unsolicited, non-binding proposal from an unnamed strategic party received by Synaptics on Sept. 2, prompting the two companies to renegotiate the deal structure and consideration. Moderna rose 2.2% in premarket trading to $193.15 after Nasdaq confirmed the biotechnology company will be added to the Nasdaq-100 Index effective Oct. 9, replacing Warner Bros. Discovery, while Fair Isaac fell 6.9% after Bloomberg reported the Federal Housing Finance Agency plans to require lenders to use credit data from only two of the three major credit bureaus for mortgages sold to Fannie Mae and Freddie Mac.

Futures linked to Canada's main stock index edged higher on Friday as investors awaited key U.S. employment data and assessed ongoing volatility in the global bond market. By 06:09 ET, the S&P/TSX 60 index standard futures contract had risen by 5 points, or 0.2%, after the S&P/TSX composite index finished down 0.2% at 35,154.76 on Thursday, its lowest close since July 20. U.S. futures also rose, with Dow futures up 200 points, or 0.4%, S&P 500 futures up 32 points, or 0.4%, and Nasdaq 100 futures up 215 points, or 0.7%, while Brent crude fell 2.4% to $99.83 a barrel. September nonfarm payrolls are expected to show 89,000 jobs added versus 162,000 in August, with the unemployment rate seen at 4.1%, as Dallas Fed President Lorie Logan said rates will need to rise by at least 50 basis points to curb sticky inflation. Nike shares slumped more than 10% in premarket U.S. trading after the company outlined plans to cut more jobs and overhaul its global divisions, and said revenue is expected to drop in the high single digit in fiscal 2027 against analysts' projections for a decline of around 2%.

Broadcom is reportedly assembling a $60B debt package to fund AI infrastructure buildouts for companies like Anthropic, consisting of a $42B senior-secured tranche syndicated by banks and an $18B junior tranche led by Blackstone. Google has partnered with Planet Labs to successfully launch its Project Suncatcher prototype satellite into orbit aboard a SpaceX rocket, testing how well Google's Tensor Processing Units handle the extreme radiation and thermal conditions of space. Crude oil futures fell sharply following reports that the European Union and the International Energy Agency are discussing the release of 100M combined barrels of diesel and crude reserves to ease global supply shortages, a move urged by U.S. Treasury Secretary Scott Bessent. Nike's overall sales dropped 4% in its fiscal first quarter, dragged down by a 22% decline in Greater China and soft e-commerce, and its disappointing full-year revenue forecast sent shares tumbling around 10% in premarket trading while prompting acceleration of a new $2.5B cost-saving initiative called Pace. Eurozone annual inflation jumped to 3.8% in September, surpassing estimates of 3.6% and up from 3.2% the previous month, while core inflation rose slightly to 2.5% in line with expectations.

ON Semiconductor agreed to acquire Synaptics for $123 per share in cash, or approximately $5.7B, replacing the all-stock deal announced in June that was valued at about $7B. The revised transaction, which follows an unsolicited competing proposal, is expected to be immediately accretive to Onsemi's non-GAAP EPS and will be funded with cash on hand and committed debt financing from Morgan Stanley, with closing still expected by mid-2027; Synaptics' board unanimously approved the amended agreement. Synaptics shares rose 14% and Onsemi shares gained 6% on the news. ChronoScale Holdings climbed 6% after announcing an expansion with an existing AI infrastructure customer and a separate agreement with a new customer, bringing its contracted business to support a $1B annualized revenue run rate by Q3 2027, though the company cautioned the target depends on timely infrastructure deployment, power and equipment availability, and access to capital. Nike shares plunged 9% after reporting mixed FQ1 results, with revenue declining 4% Y/Y to $11B and a weaker-than-expected FY2027 outlook; Greater China sales plunged 22% Y/Y to $1.2B, Converse revenue fell 28%, Nike Direct declined 8%, and wholesale sales slipped 1%. Nike expects FY2027 revenue to decline by a high-single-digit percentage and adjusted EPS of $1.15-$1.35, excluding about $0.15 in restructuring costs, below the $1.67 consensus, with its PACE initiative targeting approximately $2.5B in savings through FY2031, including $1B in employee-related costs.

Zacks Investment Research added Johnson Outdoors, Clearfield and NIKE to its Zacks Rank #5 Strong Sell List for October 2nd. Johnson Outdoors, ticker JOUT, a global outdoor recreation company, saw its Zacks Consensus Estimate for current-year earnings revised 73.3% downward over the last 60 days. Clearfield, ticker CLFD, which designs and manufactures the FieldSmart fiber management platform, had its current-year earnings estimate cut almost 55.8% over the same period. NIKE, ticker NKE, the worldwide athletic footwear, apparel and equipment maker, saw its current-year earnings estimate revised almost 7.5% downward over the last 60 days.

Nike missed Wall Street's revenue expectations in calendar Q3 2026, with sales falling 4.3% year on year to $11.21 billion against analyst estimates of $11.33 billion, while non-GAAP profit of $0.48 per share beat consensus by 10.5%. Management attributed the decline to deliberate reductions in Sportswear and Jordan Brand volumes, ongoing inventory clean-up in Greater China, and underperformance in certain lifestyle categories, with CEO Elliott Hill saying results are below both expectations and potential. Sportswear cuts included a nearly 50% reduction in Dunk sneaker supply, a $200 million headwind this quarter, while the Jordan Brand is restoring a scarcity model for Jordan Retro products. Running, Football, Basketball, Tennis, and Golf all delivered double-digit growth under the Sport Offense strategy. CFO David Denton said the strategic resets will pressure reported revenues for the remainder of this year and into next year, with cost savings from the Pace program, targeting $2.5 billion, to be partly reinvested in product innovation and market-specific growth.

Nike, the largest US sports equipment maker, is preparing a major business restructuring and further job cuts after the company forecast that revenue in fiscal 2027 will decline more than the market expects, amid continued sluggish sales in China. Nike expects the problems to persist for several more quarters, and first-quarter sales in China fell 26% on a constant-currency basis. Nike shares fell 8.5% in after-hours trading on Thursday, October 1. The company expects fiscal 2027 revenue to decline at a high single-digit rate, compared with analysts' average forecast of a roughly 2% drop for the full year. Nike announced a new operating model, reducing its global business regions from four to three: the Americas, Asia Pacific and China, and Europe, the Middle East and Africa, or EMEA, along with job cuts, and it plans to open a new campus in India. The company does not yet know how many positions will be eliminated and will begin notifying affected employees in 2027. The plan is expected to save about 2.5 billion dollars in costs by fiscal 2031, with most of the savings coming in fiscal 2029 and fiscal 2030. Elliott Hill, Nike's chief executive, said the company's sports goods business is not yet large enough to offset pressure from its sportswear business, the Jordan brand and the China market, adding that a recovery in the weaker parts of the business will take time and that Nike will reduce the number of retro Jordan product launches. Neil Saunders, managing director at GlobalData, said the restructuring plan is not problematic in itself but reflects that Nike's current business model may no longer suit the situation.

Nike shares fell about 3.5% after the sportswear giant reported a mixed fiscal first quarter in which an earnings beat failed to offset weaker-than-expected revenue. Adjusted earnings came in at 48 cents per share, topping Wall Street expectations of 44 cents, but revenue was $11.21 billion, below estimates of $11.35 billion and down 5% on a currency-neutral basis from a year earlier. The weakness was broad, with declines in Greater China and EMEA, while Nike Direct revenue fell 8%, and gross margin rose 60 basis points to 42.8% on lower warehousing and logistics costs. Nike also guided for fiscal 2027 revenue to decline by high-single digits, with adjusted EPS of $1.15 to $1.35 excluding about $0.15 of restructuring expenses, and said its new Pace operating model is expected to generate approximately $2.5 billion in cumulative savings through fiscal 2031 while incurring approximately $1 billion in pretax charges over the same period, including about $300 million in fiscal 2027. CEO Elliott Hill said the company's Sport Offense strategy is producing measurable progress in its performance business, while acknowledging more work remains in Sportswear, Jordan Brand and Greater China.

Nike reported fiscal third-quarter revenue of $11.21 billion, down 4.3% year on year and below analyst estimates of $11.33 billion, a 1% miss. GAAP earnings per share came in at $0.48, beating the consensus estimate of $0.44 by 9.9%, though down from $0.49 a year earlier. Operating margin was 8.1%, in line with the same quarter last year, while constant currency revenue fell 5% year on year. The company guided for revenues to decline high-single digits in fiscal 2027, with non-GAAP diluted earnings per share expected between $1.15 and $1.35, excluding $0.15 of restructuring expenses. Shares fell 6.3% to $33.00 immediately after the report.

Nike released WNBA star Caitlin Clark's first signature shoe, the Caitlin 1s, on the same day the company reports earnings after the close of trading. Earnings and revenue are both predicted to decline, and the stock is down 44% this year as CEO Elliot Hill approaches his third year with a turnaround still pending. The company has been removed from the S&P 100, Converse revenue has fallen for 13 straight quarters, and Kylian Mbappé defected to On, while the Caitlin 1s are being viewed as the potential catalyst Nike needs. Nike also recently added Alexandra Arnaud to its board.

Nike investors are hoping for a reset when the sportswear giant reports earnings. Shares are trading near their lowest level since 2014, while Wall Street analysts continue to cut estimates and price targets. Yahoo Finance Senior Business Reporter joined Market Domination Overtime to break down what investors should watch when Nike reports its fiscal first-quarter results on Thursday, October 1.

Nike could be headed for another "reset moment" when it reports earnings later this week, with Evercore ISI analyst Michael Binetti warning that the sportswear giant may need to signal lower second-half fiscal 2027 revenue. Binetti said Nike has likely seen cancellations or negative order revisions from retailers for Spring 2027 since its last earnings call, which he expects to translate into further negativity in the company's fiscal second-half 2027 revenue outlook, and he argued that with a new CFO joining, it might make sense to lower that outlook on this call. The report lands against a rough backdrop: Nike stock is down about 25% since its last earnings report on May 28, trades near a 52-week low, is off 53% from its year-ago peak, and has seen its market cap roughly cut in half since 2021 highs. Nike projected fiscal first-quarter revenues down by low-to-mid-single-digit percentages and reiterated flat earnings per share growth over the next three quarters, excluding benefits from tariff recovery proceeds, after reporting fiscal fourth-quarter revenue of $11 billion, a 1% reported decline and a 4% currency-neutral drop, with diluted earnings per share of $0.72 inflated by a $0.52 per share one-time tariff recovery benefit. Stifel analyst Peter McGoldrick said in his own preview that risk-reward remains hung up on insufficient consumer demand for new products while Hoops Classics, 18% of revenue, continues to shrink, and that at 17x 2027 calendar year price-to-earnings estimates versus a footwear median of 11x, he sees risk to the multiple if the turnaround timeline slips again. The company also faces the loss of soccer icon Kylian Mbappé, who ended his long-term Nike tie-up this month to join Swiss sports giant On, and a brutal late-August warning from Dick's Sporting Goods tied in part to Nike heavily discounting slow-moving product, while CEO Elliott Hill continues to battle execution issues, changing sneaker preferences, cautious consumers, and hungry competitors like On.

Investors turn this week to a heavy earnings and economic calendar headlined by Micron's fiscal fourth quarter report on Wednesday and Friday's September jobs report. Micron's results will be scrutinized for signs of continued demand in the memory trade, which has emerged as one of the most significant bottlenecks for the AI build-out, while Nike reports Thursday as CEO Elliott Hill faces investor concerns and the loss of French soccer star Kylian Mbappé to On. On the data front, economists expect 100,000 jobs added in Friday's September report after August's 162,000 far exceeded the 53,000 estimate, with BNP Paribas forecasting 90,000 and Bank of America forecasting 60,000; Wednesday also brings PCE inflation data, the Fed's preferred metric, watched for whether the FOMC will hike rates again in 2026. Meta's week was dominated by Muse, its new AI agent that Zuckerberg said has millions of users and has topped Apple's App Store and Google's Play Store, with the company planning to take a small cut on transactions made through the agent and extending it to next-generation Meta VR Glasses and the handheld Muse Charm. The extension of the US-China trade truce by two months, to Jan. 10, 2027, was the biggest news from Xi Jinping's first state visit since November 2023, though Trump's team is considering new 7.5% tariffs on China over overcapacity and has delayed action until after this week's meeting. Consumer sentiment fell to 48.1 in September from 51.7 in August, slightly above the Street's 47.5 expectation, as consumers' expectations for their personal finances weakened by about 10%.

Bank of America downgraded Nike to Underperform from Neutral, with analyst Lorraine Hutchinson cutting her price target to $30 from $47 and lowering fiscal 2027 and 2028 EPS estimates by 11% and 12% to $1.43 and $1.87, saying the turnaround is taking longer to materialize. Stifel upgraded Microsoft to Buy from Hold, with analyst Brad Reback raising his price target to $575 from $530 and citing confidence in sustaining mid-to-upper-teens revenue growth. J.P. Morgan upgraded CoreWeave to Overweight from Neutral and lifted its price target to $125 from $120, pointing to favorable compute pricing and a greater willingness to lean into short-term contracts at premium pricing. UBS downgraded PG&E to Neutral from Buy and cut its price target to $14 from $19, lowering its long-term EPS growth forecast to 8.5% from 9% as the wildfire liability reform catalyst fades. KeyBanc downgraded Comcast to Underweight with an $18 price target, expecting domestic broadband net losses to widen to 665,000 in 2027, while HSBC downgraded Twilio to Reduce from Hold and Rosenblatt initiated SanDisk at Buy with a $2,400 price target.

French soccer star Kylian Mbappe has ended a two-decade partnership with NIKE, Inc. to sign with Swiss sportswear brand On, according to a Reuters report dated September 18, 2026, in a deal that includes both cash and equity and gives On Holding AG its first major star as it pushes into soccer for the first time. A source told CNBC that Nike chose not to renew Mbappe's contract as it expired in July 2026, deciding to direct its endorsement spending elsewhere. The signing gives On immediate global credibility ahead of its first soccer boots in 2027, with Thierry Henry serving as director of football and Roger Federer backing the brand, while the equity component aligns Mbappe with On's long-term success. Nike retains a powerful soccer platform despite the loss, still supplying France's national teams through the 2033-34 season and becoming the German national teams' official supplier in 2027, and shares of both companies barely moved after the announcement. On still faces pressure in the Americas, which contribute more than half of its revenue, after missing second-quarter sales estimates and with its shares down approximately 40% in 2026, while Nike has also lost Lamine Yamal to Adidas and the Premier League match-ball contract to Puma.

Bank of America downgraded Nike to Underperform from Neutral and slashed its price target to $30 from $47, implying roughly 17% downside from Nike's latest close. Analyst Lorraine Hutchinson said Nike's turnaround is taking longer to materialize as weakness in its larger lifestyle categories outweighs progress from newer product launches. BofA also cut its fiscal 2027 and 2028 earnings-per-share estimates by 11% and 12%, respectively, to $1.43 and $1.87, and now expects negative sales growth through fiscal 2027, effectively pushing a meaningful top-line recovery into fiscal 2028. The bank flagged North American wholesale as a major concern, saying recent wholesale growth has not been matched by strong sell-through at retail, while Greater China sales fell 17% in the latest quarter and a planned reduction in distribution through e-commerce partners could create additional near-term weakness. BofA also noted that its fiscal 2027 estimates imply a payout ratio of roughly 107%, meaning projected earnings would not fully cover the dividend.

Akamai Technologies surged more than 21% in premarket trading after announcing a seven-year power contract and an $11.6 billion deal with Anthropic, alongside a warrant letting Anthropic buy up to roughly 5% of Akamai's shares at $111.33 each. Scholastic fell over 10% after posting an adjusted fiscal first-quarter loss of $3.63 per share, wider than the $2.52 per share loss a year earlier, on revenue of $216.8 million, down 4%. Synopsys gained over 3% after HSBC upgraded the stock to buy from hold, with analyst Frank Lee calling the company a high-growth AI beneficiary under its new business model. Nike slid nearly 2% after Bank of America downgraded it to underperform from neutral, expecting sales declines from the second quarter through the rest of fiscal 2027. Costco Wholesale edged lower even after reporting better-than-expected fiscal fourth-quarter results, with adjusted earnings of $6.60 per share on revenue of $95.72 billion, topping LSEG consensus estimates of $6.53 per share and $94.86 billion.

A Federal Reserve Bank of Atlanta survey found that most U.S. companies are keeping their tariff refunds rather than passing them to consumers, with only 14.8% intending to lower prices and 17.2% planning consumer rebates. The U.S. Treasury had issued nearly $135 billion in tariff refunds by mid-September, out of $166 billion collected by U.S. Customs and Border Protection from 330,000 importers before the Supreme Court declared President Donald Trump's Liberation Day tariffs illegal. Walmart received a $2.9 billion refund, Apple $2.2 billion, Nike $986 million, Target $994 million, Home Depot $730 million, Amazon $600 million, General Motors $500 million, TJX $331 million, Lowe's $80 million and Motorola $60 million. The survey found 75.2% of companies plan to hold onto their refunds, with 52.5% planning to invest in research and development or capital projects, and the refunds represent an average 1.7% of annual revenues. Walmart has pledged to use its refund to cut prices, while FedEx set up a tariff refund portal for eligible customers and UPS is also offering refunds to customers. Consumers have launched class-action lawsuits against companies including Nike, and Sens. Elizabeth Warren and Bernie Sanders are pressing the Trump administration to include consumer relief and plan refunds if the court strikes down new tariffs, including up to 12.5% tariffs on imports from 86 countries and 50% tariffs on a variety of Canadian products.

On Holding AG has signed Kylian Mbappé, ending the forward's nearly two-decade relationship with NIKE, Inc. and marking the Swiss company's first major move into football apparel. Mbappé, who plays for Real Madrid and is the World Cup's all-time leading goal scorer, will serve as a global ambassador and work directly with On's product teams on footwear and apparel design; financial terms were not released, but The Athletic reported the deal includes an equity component alongside cash. On also named football commentator Thierry Henry as its director of football, formalizing a connection in the works since late 2025. Evercore ISI analyst Michael Binetti called the signing a direct challenge to NIKE and adidas, which he described as having a near-monopoly in the football market, and said the investment should act as a solid near-term catalyst for On's stock. The deal lands as NIKE shares are down about 42.95% year to date under CEO Elliott Hill, and after NIKE lost Barcelona's Lamine Yamal to Adidas in 2024. On, which only entered football this year and plans to launch its first football products in 2027, saw hedge fund ownership rise from 52 to 54 between the first and second quarters, while NIKE's fell from 71 funds to 56.

JD Sports Fashion reported weaker sales and profits for the six months to August 1, blaming cost-of-living pressures for weighing on demand among its younger customers. Sales came in at £5.9 billion, about 0.7% less than the same period a year ago, driven by a 1.7% decline in North America, its biggest market, and a 1.6% fall in the UK, partly offset by sales jumping by more than a 10th in the Asia Pacific region. Adjusted pre-tax profit tumbled by a fifth to £282 million. Chief executive Regis Schultz described a resilient performance against a challenging backdrop of consumer cost-of-living pressures, footwear product cycle headwinds and a highly promotional market, and the retailer cut its full-year profit outlook last month to between £700 million and £800 million, down from a previously guided range of £750 million to £850 million. JD Sports had 4,766 stores worldwide in August, more than 100 fewer than a year earlier, and analysts said its trading is being hurt by weaker sales trends at Nike, one of its most significant brand partners.

Nike heads into its October 1 fiscal 2027 first-quarter report with Wall Street focused on whether improving margins and performance categories can offset weak demand in the lifestyle business. Stifel cut its price target to $40 from $45 on September 21 while keeping a Hold rating, citing a more promotional Western marketplace and a tougher fiscal fourth-quarter gross-margin comparison, and lowered its FY2027 and FY2028 adjusted EPS estimates by $0.20 each, to $1.70 and $2.05. On the positive side, Performance grew mid-single digits in fiscal 2026, Running posted five consecutive quarters of double-digit growth and added roughly $1 billion in revenue, and North American wholesale revenue grew 10% in the fourth quarter; Stifel estimates the World Cup could add about $300 million to Q1 revenue. Against that, Sportswear declined double digits in Q4 and management expects Sportswear and Jordan streetwear to remain negative through FY2027, with those businesses representing roughly half of revenue, while Hoops Classics, about 18% of revenue, continues to contract and Greater China revenue fell 17% in Q4. UBS expects a Q1 EPS shortfall of five cents and sees risk of a broader FY2027 reset at the November Investor Day, while BMO expects Nike to reset its FY2027 outlook when it reports; the stock traded at a 20.66 forward P/E as of September 21 versus 10.46 for Deckers Outdoor, 14.27 for On Holding and 11.47 for Adidas, and short interest climbed to 75.59 million shares as of August 31 from 57.37 million a month earlier, or 7.92% of the float.

On Holding shares are soaring in Tuesday's pre-market trading after the athletic apparel brand unveiled new growth targets at its investor day. The company forecast sales growth in the high teens over the next several years and authorized its first share buyback, worth a billion dollars, running through 2029. On is pushing beyond running, tennis, training and outdoor sports into new categories including golf and football, a big bet that follows its signing of Killian Mbappé away from Nike. Management also pointed to an EBITDA margin of 22% by 2029. The stock was up 12% in the morning session, though it had been trading below its IPO price as of yesterday's close even as sales and margins stayed strong, a sentiment disconnect analysts attributed in part to industry-wide pressures such as tariffs, labor and material issues.

Nike's falling share price is putting its place in the Dow Jones Industrial Average at risk, with Reuters reporting the stock trading around $36 and carrying just a 0.4% weighting in the price-weighted index, the smallest among its 30 components. Nike has gained only about 5% since joining the Dow in 2013, while its market value has fallen roughly 80% over the past five years, and Reuters also noted the company is set to leave the S&P 100 after 18 years. The weakness reflects underlying business pressures: Nike's fiscal 2026 revenue was $46.4 billion, essentially flat from $46.3 billion a year earlier and down from $51.4 billion in fiscal 2024, while net income fell to $3.1 billion from $5.7 billion two years earlier. Nike Direct revenue declined 6% in fiscal 2026 and digital sales fell 12%, with Greater China sales down 17% in the fiscal fourth quarter and management expecting another revenue decline in fiscal 2027 amid competition from Anta and Li Ning. The company ended fiscal 2026 with $7.6 billion of cash and equivalents and $2.9 billion in operating cash flow, down from $3.7 billion, leaving the recovery under CEO Elliott Hill dependent on whether new products and wholesale stabilization can restore sustainable growth.