Nike falls after S&P cuts rating to A, negative outlook on 'protracted' turnaround

NIKE

05/10/2026 15:48

** Shares of sportswear giant Nike  NKE.N down ~3% at $32.83 in morning trading
** S&P Global downgrades stock rating to 'A' from 'A+', with 'negative outlook,' saying co's turnaround efforts will take more time and higher investments than previously expected
** Sees sharply lower revenue, profit, and cash flows over the next 24 months and continuing pressure in China; Says senior leadership and board changes could slow NKE
** Expects co's debt management to remain pressured and sees co burning about $1.2 billion of cash annually over the next two to three years
** Rating could be lowered further at any time in the next 12-24 months if Nike does not make progress towards stabilizing and turning the business around, S&P says
** Co's shares hit a near 13-year low on Friday after it forecast a steep drop in full-year revenue 
** Up to last close, stock down about 49% YTD

 (Reporting by Shania S Thomas and Neil J Kanatt in Bengaluru)
 ((shanias.thomas@thomsonreuters.com))