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Nike, the beleaguered sports footwear and apparel giant, reports their fiscal Q3 '26 financial results after the closing bell on Tuesday, March 31st, 2026. Current Street expectations for Nike's fiscal Q3 '26 are $11.23 billion in revenue, EPS of $0.28 and operating income of $512 million, for “expected” declines y-o-y of 0%, -48% and -31%, respectively. The tariff comparisons get easier now, but there is still an impact. The bigger issue could be the relationship with China.

Nike now offers a dividend yield above 3%. New CEO Elliott Hill's turnaround efforts are starting to show results.

Nike will post its third-quarter earnings report at the end of March. Its stock won't recover unless it simultaneously grows its sales and gross margins.

Recent market action reflects a defensive shift, with oil majors like Exxon Mobil (XOM) and Chevron (CVX) outperforming amid geopolitical tensions and macro uncertainty. AI and growth stocks, including MU, META, ORCL, and GOOGL, have seen notable declines as capital rotates into defensive, dividend-yielding sectors such as telecom.

Nike upside is highly contingent on resolution of the Iran conflict; peace could drive shares to $60, while prolonged uncertainty risks new 52-week lows. Recent margin pressures, international weakness—especially a 17% Greater China decline—and a forward P/E of 34.39x keep me cautious at hold. Dividend yield now exceeds 3%, supported by strong liquidity, buybacks, and an A credit rating, but near-term recovery is unlikely.

Nike stock continues to struggle under new CEO Elliott Hill amid increased competition and continued struggles in the China market.

The most encouraging signal is product innovation, particularly in the running segment, where growth has quietly reaccelerated. Near-term risks for Nike are very real: Soft global demand, tariff pressure, and weak segments like Converse could easily overshadow progress.