Should You Buy the Dip in Nike Stock for 2026?

Core Insights - Nike's Q4 CY2025 revenue reached $12.43 billion, exceeding forecasts despite flat sales year-over-year, indicating a "beat-without-growth" trend in the footwear market as demand declines and classic styles lose traction [1][8] - The company faces significant challenges in China, where weaker demand and tariff-related cost pressures are impacting profitability and share price, leading to a lower stock valuation [2][5] - Current trading price of Nike shares is $57.34, reflecting a 24.22% decline year-to-date and a 25.3% drop over the past 52 weeks, positioning the stock in "dip" territory for investors focused on 2026 [5] Financial Performance - Nike's market value is approximately $84.6 billion, with a forward annual dividend of $1.64 per share, translating to a cash yield of about 2.79% for shareholders [4] - The recent earnings report for the quarter ending November 2025 showed an EPS of $0.53, surpassing the $0.37 estimate by $0.16, resulting in a 43.24% positive surprise, indicating strong execution despite external pressures [7] - Q4 CY2025 revenue of $12.43 billion was a 1.7% beat against the consensus of $12.22 billion, although sales remained flat year-over-year, highlighting a cooling growth trend [8] Market Valuation - Nike's stock trades at a forward P/E of 36.75x, significantly higher than the sector median of 19.90x, suggesting that the market still assigns a premium to Nike's earnings potential and growth prospects despite recent declines [6]