What Is Nike Stock’s Biggest Opportunity?
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On its October 1, 2026 call, management said Nike (NKE) expects its revenue to fall at a high single-digit rate in fiscal 2027. The company is cutting supply in Sportswear, Jordan Brand and Greater China, which management expects to press on revenue into fiscal 2028. Yet not every part of Nike shrank in fiscal Q1 2027, and management says the company is moving resources toward its biggest opportunities. So which part of Nike is still growing, and how fast?
Nike’s Performance Business Is Still Growing
Management said Nike’s sports performance business, its gear for running, football, basketball and training, grew at a high single-digit rate in fiscal Q1 2027. Over the same three months ended August 31, 2026, total revenue at Nike fell 4.3% from a year earlier.
This growth was broad: Running rose by double digits again, and management said Global Football grew at a strong double-digit rate in all four of its regions, helped by the World Cup. Management said that the performance business would have grown at a low double-digit rate leaving out Greater China, where Nike is resetting its business.
Performance products also drove growth in one whole region. North America grew 2% in the quarter, and management said that increase came from performance products, led by Running, Global Football and Basketball.
How Big Is Nike’s Performance Business?
Management said Nike grew the performance business to $16 billion in fiscal 2026, a year in which the company’s total revenue was $46.4 billion. That business is large in its own right. Yet Sportswear, Nike’s lifestyle shoes and clothing, made up just under half of revenue in fiscal Q1 2027 and fell at a low double-digit rate.
Nike stock has moved the other way from its performance business. Nike shares lost 38.2%, dividends included, over the year to November 12, 2026, while the S&P 500 returned 12.2%. The shares closed that day 42.8% below their highest close of the past year.
What Does Nike Need To Go Right?
Management said on the October 1 call that Nike will go through some additional pain for the rest of fiscal 2027, probably running a little into fiscal 2028. Its revenue guide for the year assumes that Greater China gets worse for the balance of the year. In the second quarter alone, management expects tougher comparisons with a year earlier in Europe and North America to take about 400 basis points off revenue.
For the opportunity to pay off, the performance business has to keep growing while Nike cuts back Sportswear, Jordan Brand and Greater China. Growth in Nike’s performance business is the measure to watch at its fiscal Q2 2027 report, expected in December 2026. Before then, Nike hosts an Investor Day on November 16–17, 2026, where it plans to lay out its portfolio priorities and long-term growth algorithm.
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