Why Did Nike Soar 3.21%? Morgan Stanley Upgrade, Earnings Beat

On July 28, 2025, NIKE's stock rose by 3.21% in pre-market trading, indicating a positive market sentiment towards the company.

Morgan Stanley has upgraded NIKE's rating to "Overweight" with a target price of $93. This upgrade reflects the firm's confidence in NIKE's future performance and potential for growth.

NIKE's recent financial results for the fiscal fourth quarter of 2025 showed a revenue of $11.1 billion, which, although down by nearly 12% from the previous year, exceeded analysts' estimates by $373.5 million. The company's "Win Now" initiatives, aimed at improving operational efficiency and cost management, are expected to ease financial pressures in the coming quarters.

NIKE's cash position remains robust, with $9.2 billion in cash and equivalents and short-term investments. The company returned $2.3 billion to shareholders through dividends in the past year, maintaining a quarterly dividend of $0.40 per share and a dividend yield of 2.10%. This consistent dividend payout, along with 23 consecutive years of dividend increases, underscores NIKE's commitment to shareholder value.