Nike stock price: Why shares are rising despite the shoe giant’s revenue decline and serious tariff warning

Nike's shares are trading higher despite the company reporting a revenue decline and warning of a $1 billion hit due to President Trump's tariffs. Nike's Q4 2025 revenues totaled $11.1 billion, down 12% from the same quarter a year earlier, and its full-year fiscal 2025 revenues were $46.3 billion, a 10% decline from fiscal 2024. The company's earnings per share for Q4 2025 was 14 cents, down significantly from 99 cents in the same quarter a year earlier. However, Nike's results were still above Wall Street estimates, which may have contributed to the stock's rise. The company expects to take a $1 billion hit in its current 2026 fiscal year due to the tariffs, but plans to mitigate the costs by adjusting its supply chain, getting suppliers to absorb some costs, and raising prices on US consumers. Despite the stock's surge, Nike's shares are still down over 17% for the year and over 33% in the past 12 months. The company is undergoing a turnaround, shifting its focus back to athletes and away from the lifestyle segment, under its new CEO Elliott Hill. Nike's CFO Matt Friend said the company expects to fully mitigate the tariff costs over time. The stock's rise may be due to investors rewarding the company for coming in above expectations and its plan to mitigate the tariff costs.