1 Incredible Reason to Buy Nike Stock Before Dec. 18

Nike is set to report fiscal Q2 2026 results after the close on Dec. 18 as its shares trade more than 10% lower year-to-date (and over 50% below levels five years ago); management beat estimates last quarter but reported revenue growth alongside a 6% year-over-year decline in gross profit in September. CEO Elliott Hill’s “Win Now” campaign—including senior leadership changes and a refocus on five core “fields of play” (running, basketball, football, training and sportswear)—is intended to streamline decision-making and lift operational efficiency, but tariff and macroeconomic headwinds remain and the stock still trades at a premium P/E above 30. A clear beat and evidence the turnaround is working could drive a meaningful rally, though some investors and The Motley Fool’s Stock Advisor team remain unconvinced, omitting Nike from their current top-10 buy list.

Analysis

Nike will report fiscal Q2 2026 results after the close on Dec. 18; the stock is down more than 10% year-to-date and has fallen over 50% versus five years ago, trading well below its 52-week high of $82. Management beat estimates last quarter, but the September quarter showed revenue growth alongside a 6% year-over-year decline in gross profit, signaling margin pressure even as top-line demand improved.

CEO Elliott Hill’s “Win Now” campaign centers on senior leadership changes, streamlined decision-making and a strategic refocus on five "fields of play" — running, basketball, football, training and sportswear — intended to restore operational efficiency. The company still faces tariff and macroeconomic headwinds that management must address, and the shares trade at a P/E above 30, implying investors are paying a premium for a turnaround narrative.

A second consecutive earnings beat accompanied by clear margin recovery and constructive guidance would likely catalyze a material rally; conversely, continued gross-profit contraction or muted forward commentary would reinforce downside risk. Market participants should treat the upcoming print as binary-event driven, with near-term performance hinging on margin trajectory, cost actions and commentary on tariffs and demand.

Key Decisions for Investors

• If you hold a position, reduce size or hedge into the earnings print unless you have a high conviction that gross profit and guidance will improve,
• Monitor three concrete datapoints in the report and call: gross margin trend, guidance for the next two quarters (especially commentary on demand by region and product), and management’s specific plans to offset tariff and macro headwinds,
• If Nike posts a clear margin rebound and raises or affirms guidance, consider adding exposure on the post-earnings momentum; if it misses or provides weak guidance, trim exposure and consider using options to protect downside