Nike stock soars after better than feared Q4 2025 results

Nike stock soared 17% on Friday after the company said the worst of its struggles are behind it, following a better-than-feared fiscal fourth-quarter earnings report. 

Nike on Thursday reiterated it would take the biggest financial hit from its turnaround plan during the quarter, soothing investors who worried President Donald Trump‘s tariff hikes on key Nike manufacturing hubs like China and Vietnam would derail the company’s comeback.

Nike posted a poor fourth quarter, as sales dropped 12%, net income plunged 86% and profit margins dwindled. But CEO Elliott Hill stressed the company has emerged from the worst of its slump, and the slide in sales and profits would begin to moderate in the quarters ahead. 

“The results we’re reporting today in Q4 and in FY25 are not up to the Nike standard, but as we said 90 days ago, the work we’re doing to reposition the business through our ‘Win Now’ actions is having an impact,” said Hill on an earnings call, referencing the name of the company’s turnaround plan. “From here, we expect our business results to improve. It’s time to turn the page.” 

With few details about the progress of Nike’s turnaround strategies in the company’s earnings release, the company’s shares initially fell when it posted results after the closing bell Thursday. By the end of an hourlong call with Nike executives and Wall Street analysts, the stock had surged more than 10% in extended trading.

Beyond assuring investors that the turnaround plan is working, Hill shared promising updates on new product launches and Nike’s efforts to win back wholesale partners, which have been key areas of focus since he took over in October. 

Hill shared details behind Nike’s decision to begin selling on Amazon for the first time since 2019 and its push to win over female shoppers, another priority for the company. 

During the quarter, the company launched products in more than 200 women’s led shops, including Aritzia, and released its collection with WNBA star A’ja Wilson, which Hill said sold out in three minutes. 

By Friday morning, the stock climbed even higher after numerous banks issued bullish commentary on the company. HSBC upgraded Nike to buy from hold, its first buy rating on the stock in 3½ years. 

HSBC also raised its price target to $80, implying 28% upside from Thursday’s close. 

“Long in the making but we think the inflection is finally here,” analyst Erwan Rambourg wrote in a research note. “We think there is more than tangible evidence that Nike has a path to see its sales rebound in the not-too-distant future, and its margins to be repaired, and this despite an unfavorable tariff headwind.” 

Nike’s results show the company is rebounding on a timeline Wall Street likes. But don’t call it a comeback just yet. 

The sneaker giant is trying to grow again at a shaky time for the economy, as weaker consumer sentiment, rising debt, tariffs and mass deportations raise questions about spending and GDP.

Nike still expects sales to decline in…