Why Nike Stock Is Plunging in After-Hours Trading
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Investors appear to believe that the company's 'Win Now' campaign is falling short.After essentially remaining flat during today's market session -- shares were down 0.09% at 4:00 p.m. -- Nike (NKE +0.14%) stock is racing lower in after-hours trading. The athletic apparel retailer reported second-quarter 2026 financial results after the bell rang this afternoon, and investors are clearly unpleased with the company's performance. As of 5:57 p.m., Nike stock was down 10.2% from where it ended after today's regular trading session. Image source: Getty Images. Nike sported strong headline figures -- but not enough to impress the market Beating analysts' expectations that it would report $12.2 billion, Nike posted second-quarter fiscal 2026 sales of $12.4 billion, a 1% year-over-year increase. ExpandNYSE: NKENikeToday's Change(0.14%) $0.10Current Price$65.78Key Data PointsMarket Cap$97BDay's Range$65.40 - $66.9752wk Range$52.28 - $82.44Volume1.5MAvg Vol15MGross Margin41.45%Dividend Yield2.45% At the bottom of the income statement, Nike provided another surprise. Whereas analysts had anticipated the company reporting diluted earnings per share (EPS) of $0.37, the company posted Q2 2026 EPS of $0.53. While it exceeded profit expectations, investors are balking at the company's inability to expand its profit margin. Apparently, many investors had high hopes that Nike's Win Now initiative, aimed at optimizing its operations and driving bottom-line growth, would bear fruit in the second quarter of fiscal 2026. This wasn't the case, though. Nike reported a Q2 2026 net profit margin of 6.4% -- narrower than the 9.4% net profit margin generated during the same period last year.Advertisement If Nike stock continues to tumble, a buying opportunity may arise Nike has encountered some headwinds lately, but it'd be wholly unwise to speculate that the company will fail to right the ship, considering the formidable brand it has developed. With the market punishing Nike stock immediately after the Q2 2026 financial results report, prospective investors would be wise to keep a close eye on what happens in the coming days. For those with Nike stock on their watchlists, a sustained decline in the stock price could present an excellent opportunity to buy shares at a more attractive price.Read NextDec 17, 2025 •By Parkev Tatevosian, CFAShould You Buy Nike Stock Before the Huge Investor Update?Nov 26, 2025 •By Jennifer SaibilHow Good Has Nike (NKE) Stock Actually Been?Nov 26, 2025 •By Daniel SparksNike vs. Lululemon: Which Stock Is the Better Buy Now?Nov 11, 2025 •By Motley Fool YouTubeNike: Can the Iconic Brand Overcome Its Recent Struggles?Oct 25, 2025 •By Neil PatelDown 62%, Can Nike Stock Be a Millionaire Maker?Oct 21, 2025 •By Adam LevyBillionaire Bill Ackman Quietly Doubled Down on His Hedge Fund's $1.4 Billion Turnaround BetAbout the AuthorScott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.TMFProudMonkeyX@TMFProudMonkeyStocks MentionedNikeNYSE: NKE$65.78 (+0.00%) $+0.10*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement