Nike’s Q2 EPS Surges 43% While Wholesale Sales Jump 8%
Nike's Q2 FY2026 EPS beat consensus by 43% on an 8% rise in wholesale revenues and over 20% growth in its running category for two quarters. $1.5B in annual tariffs and inventory liquidation compressed margins, but analysts anticipate a recovery and maintain an $85 price target, implying 33% upside.
1. Q2 FY2026 Earnings Outperform
Nike reported a 43% year-over-year increase in Q2 FY2026 EPS, driven by an 8% uplift in wholesale revenues and more than 20% growth in its running category for the second consecutive quarter.
2. Margin Compression Drivers
Gross margins were pressured by $1.5 billion in annual tariffs and ongoing inventory liquidation efforts, reflecting short-term headwinds tied to trade policy and excess stock levels.
3. Analyst Price Target and Outlook
Despite margin challenges, analysts expect mitigation measures to restore profitability and have set an $85 price target on Nike shares, implying 33% upside alongside a 2.6% dividend yield.