RBC warns Nike’s turnaround may extend through the rest of 2026, despite new growth drivers

Nike’s efforts to stabilize and re-accelerate growth are still likely to take longer than expected, according to RBC analysts, which means investors may have to stay patient through the rest of 2026. In a note picked up by market coverage, RBC characterized Nike’s turnaround as slow even with “new growth drivers” emerging, suggesting that the next leg of improvement could be pushed out rather than arrive quickly.

RBC’s view is tied to how the company’s product and execution improvements play out over time, rather than a sudden change in demand. The analysts said the turnaround could remain “slow through the rest of 2026,” implying that the market may need to look beyond near-term results for evidence of sustained progress.

The call arrives as RBC also adjusted its stance on the stock. Market coverage of the brokerage action said RBC downgraded Nike to Sector Perform from Outperform and reduced its price target to $50 from $70, while also noting broad sell-side sentiment metrics compiled by FactSet.

The change in rating and target indicates RBC sees a less favorable risk-reward profile than it previously did, even if the company’s strategy remains intact. That sort of shift typically reflects skepticism about the timing of the turnaround and the likelihood that Nike can translate its initiatives into faster financial improvement.

Nike’s wider challenge is well understood in consumer retail and sportswear: brand momentum must show up in both product performance and inventory health, while Nike also competes in a category where promotional intensity can rise when competitors struggle or where consumer demand softens. In that setting, analysts often differentiate between “directionally correct” progress and progress that is strong enough, soon enough, to change earnings expectations.

Still, the market note does not provide detailed new disclosures about specific Nike programs or product timelines beyond the general framing that new growth drivers exist but are unlikely to deliver results quickly. RBC did not, in the material described by the market coverage, offer new operational specifics that would allow outside observers to pinpoint exactly when improvements should be expected.

What investors will watch next is whether Nike’s ongoing efforts begin to show more consistent traction in demand and margins as 2026 progresses. In practice, that means looking for signs that product categories are resonating, that the company is managing inventory effectively, and that results improve without relying primarily on discounting.

For now, RBC’s message is essentially timing-focused: the turnaround is moving, but it may not move fast enough to satisfy investors expecting a sharper inflection before the end of 2026.