Nike Stock Today (Dec. 18, 2025): NKE Slips After Q2 Earnings Beat as China Weakness and Tariffs Keep Pressure on Margins

Nike stock (NYSE: NKE) was volatile on Thursday, December 18, 2025, as investors weighed a headline earnings and revenue beat against a familiar mix of issues: shrinking profit, softer demand in Greater China, and tariff-driven margin pressure.

By late U.S. trading, Nike shares were around $65.63, after swinging between roughly $62.20 and $66.96 during the session on heavy volume. ^[1]

But the bigger move came after the closing bell, when Nike released fiscal Q2 2026 results (quarter ended Nov. 30, 2025). Despite the beat, the stock slid in after-hours trading, with major outlets citing declines ranging from about 2% to 5%as the initial reaction evolved. ^[2]

What happened to Nike stock today

Nike shares closed near $65.63 on Dec. 18 and then turned choppy following the earnings release. ^[3]

Here’s the short version of why traders didn’t simply “buy the beat”:

Revenue and EPS topped expectations, which helped validate early traction in Nike’s turnaround.
Net income fell sharply year over year, and gross margin dropped 300 basis points—a reminder that profitability remains under pressure.
Greater China was again the weak spot, and investors are still looking for clearer signs that demand and innovation are broadening beyond running into Nike’s biggest lifestyle and basketball categories.

That push-pull—better-than-feared results vs. still-tough fundamentals—defined Nike stock today. ^[4]

Nike earnings today: the key numbers moving NKE

Nike’s official earnings release showed a quarter that beat Wall Street’s top-line expectations—but with meaningful tradeoffs under the surface:

Revenue: $12.427B, up about 1% reported ^[5]
Diluted EPS: $0.53, down 32% year over year ^[6]
Net income: $0.792B, down 32% year over year ^[7]
Gross margin: 40.6%, down 300 bps ^[8]
Inventory: $7.7B, down 3% ^[9]

On expectations, Reuters reported Nike’s revenue was $12.43B vs. $12.22B expected (LSEG), highlighting a modest beat. ^[10]
Investing.com likewise noted EPS of $0.53 vs. $0.37 expected—a beat of about $0.16. ^[11]

Where the business is improving—and where it isn’t

North America is carrying the quarter

Nike’s North America revenue grew to $5.633B, up about 9% year over year—one of the clearest “green shoots” bulls wanted to see. ^[12]

Europe held up

Nike posted Europe, Middle East & Africa (EMEA) revenue of $3.392B, up about 3% year over year. ^[13]

Greater China remains the central problem

Nike’s Greater China revenue fell to $1.423B, down about 17% year over year—an outcome repeatedly cited as a reason investors stayed cautious even with a beat on headline results. ^[14]

Asia Pacific & Latin America softened

APLA revenue was $1.667B, down about 4% year over year. ^[15]

Nike Direct vs. wholesale: a big shift with margin consequences

Nike’s turnaround narrative has increasingly included “rebalancing” distribution—and Q2’s mix showed that clearly:

Wholesale revenue: $7.5B, up 8% ^[16]
NIKE Direct revenue: $4.6B, down 8% ^[17]

Nike’s release also breaks down why Direct fell: NIKE Brand Digital dropped 14%, and NIKE-owned stores declined 3%. ^[18]

This matters for Nike stock today because investors often view Nike Direct as a structural margin driver. A continued Direct decline—paired with accelerating wholesale exposure—can raise near-term questions about mix, pricing power, and promotional intensity. ^[19]

Why Nike stock fell after an earnings beat

Across today’s coverage, the market’s “yes, but…” reaction centered on profitability and China:

Gross margin pressure didn’t go away. Nike said gross margin fell 300 bps to 40.6%, citing tariffs as a key factor. ^[20]
Greater China sales declined 17%. That’s still too large a hole for North America strength alone to fill. ^[21]
Investors are still asking for proof the turnaround can broaden. Barron’s flagged that while running is performing, the larger basketball and casual/lifestyle categories need to recover to support long-term growth expectations. ^[22]

Put simply: the quarter reduced downside fear, but it didn’t eliminate the core debate—whether Nike’s reset can restore durable growth and margins, not just stabilize the topline.

Nike’s turnaround plan: marketing, innovation, and “back to sport”

Nike executives leaned into the idea that this is a multi-stage comeback. Dow Jones Newswires quoted CEO Elliott Hillsaying: “Nike is in the middle innings of our comeback.” ^[23]

Nike’s CFO Matthew Friend emphasized resilience and “shifts required” to position the portfolio for recovery, according to the company’s release. ^[24]

Today’s reporting also underscored two pillars Nike is pushing to regain momentum:

A bigger marketing push to reassert brand heat and defend share against newer challengers. Reuters reported that Nike’s demand-creation investment is a key focus for investors and that the company has been trying to claw back share from “nimbler rivals.” ^[25]
More product energy—especially in running. Reuters and Barron’s both highlighted running product momentum, including models like Vomero 18 and Pegasus Premium, while noting the market still wants traction in basketball and broader sportswear. ^[26]

Nike also continues to lean into “newness” via partnerships and innovation. Reuters pointed to Nike’s planned NikeSKIMS collaboration with Kim Kardashian’s SKIMS brand and a motorized footwear system positioned to help casual athletes and mobility-impaired people move faster. ^[27]

The tariff problem: margins, pricing, and supply chain choices

Tariffs were a repeated theme in both the earnings release and today’s news coverage.

Nike said gross margin fell primarily due to higher tariffs in North America, and inventories were affected by increased product costs tied to those tariff pressures. ^[28]

Reuters added context that tariffs on imports from Vietnam—where Nike manufactures around half its shoes—have continued to pressure margins. ^[29]

In the run-up to today’s report, Reuters also noted Nike previously raised expected tariff costs for the year to $1.5 billion(as of the prior quarter’s commentary), emphasizing why margins remain the market’s biggest “watch item” even when revenue is steady. ^[30]

Forecasts and analyst outlook: what Wall Street expects next for NKE

What analysts expected going into today’s report

Pre-earnings consensus (as cited by Reuters and other market trackers) centered around roughly $12.2B in revenue and ~$0.37–$0.39 EPS. ^[31]

That’s why the “beat” looked impressive on paper—EPS in particular came in meaningfully ahead of estimates. ^[32]

Price targets and the “next 12 months” view

Even with Nike stock down year-to-date (a common reference point in today’s coverage), the Street’s longer-range view still implies meaningful upside—if the turnaround holds.

MarketScreener showed an average target price around $83.07 (with 40 analysts listed) at the time of publication—roughly mid-20% above the mid-$60s level. ^[33]
Yahoo Finance summarized the average analyst price target around $82.04 in recent coverage. ^[34]
MarketBeat’s recap of analyst coverage also listed multiple firms maintaining buy-rated stances and higher targets (e.g., Jefferies reiterated a buy with a $115 target in a note dated Dec. 12). ^[35]

The most important “forecast” now: guidance tone

The next catalyst for Nike stock may not be the Q2 numbers investors can model quickly—it’s the company’s forward commentary on:

Promotional intensity (how quickly Nike can reduce discounting)
Tariff impacts and mitigation
China demand trends
The timeline for Nike Direct stabilization vs. wholesale growth

That is exactly why, even before results, outlets like Investopedia flagged Nike as a likely source of post-earnings volatility—a prediction that played out once the report hit. ^[36]

What investors should watch after today

If you’re following Nike stock beyond the headline print, today’s reporting and the company’s own figures point to a clear short list:

Greater China: Does the decline moderate meaningfully over the next two quarters? ^[37]
Gross margin: Can Nike stabilize around the low-40s while tariffs and channel mix remain headwinds? ^[38]
Nike Direct: Is the Direct decline temporary (inventory cleanup + reset), or does it signal deeper digital/store demand issues? ^[39]
Product breadth: Running is strong—can Nike reignite basketball and lifestyle at scale? ^[40]
Marketing ROI: Nike is spending more to rebuild heat—investors will want evidence that demand is responding without requiring heavy discounts. ^[41]