​NIKE, Inc. (NKE) Down 10.8% Since Q2 2026, Wall Street Remains Positive

​NIKE, Inc. (NYSE:NKE) is one of the Best Quality Stocks to Buy Before 2026. The share price of NIKE, Inc. (NYSE:NKE) has fallen more than 10.8% since the release of its fiscal Q2 2026 earnings on December 18. As a result, Wall Street adjusted its price targets accordingly. However, the general analyst consensus remains positive with the 12 month average price target reflecting more than 31% upside from the current level.

​The decline in share price came despite the company beating expectations. During the quarter, NIKE, Inc. (NYSE:NKE) grew its revenue by 0.59% year-over-year to $12.43 billion, surpassing estimates by $218.31 million. The EPS of $0.53 also topped expectations by $0.16. The falling investor sentiment was mainly due to the company’s gross profit margins that declined by 300 basis points and a 17% decline in China Sales. On the bright side, the wholesale revenue in North America increased 20%, indicating that management has made progress in repairing its relationship with retail partners.

Following the release, on December 19, Paul Lejuez from Citi reiterated a Hold rating on NIKE, Inc. (NYSE:NKE) and lowered the price target from $70 to $65. On the same day, Jay Sole from UBS also reiterated a Hold rating on the stock and lowered the price target from $71 to $65.

Analyst Sole of UBS noted that the second quarter results depict that the company’s turnaround is taking longer than expected. He added that this suggests that the company might need more time to resize its inventory. Sole noted that despite the falling investor sentiment, NIKE, Inc. (NYSE:NKE) is expected to return to mid-single-digit percentage sales growth and approximately 10% EBIT margin over the long term.

NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, and accessories for sports and fitness activities worldwide. ​

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Disclosure: None. This article is originally published at Insider Monkey.