MW Here's how Nike's stock could benefit big from the next World Cup

By Steve Gelsi

The company sponsors six top FIFA teams and could see a $1.3 billion revenue boost as it takes advantage of World Cup visibility, an analyst says

RBC said it's more bullish on Nike's revenue prospects due to an expected boost from the FIFA World Cup next year.

Nike Inc. has a big marketing budget and sponsors six of the likely top 10 national teams in the 2026 FIFA World Cup. That opportunity may result in a $1.3 billion revenue boost as the sportswear giant works to realize a turnaround, according to an RBC Capital Markets analyst.

With next year's World Cup taking place on Nike's home turf in North America, the company could put $4.9 billion in marketing muscle behind its brands as it sees a chance to reach a larger audience than the previous FIFA World Cup, which took place in Qatar in 2022, according to RBC Capital Markets analyst Piral Dadhania.

Nike sponsors six top-tier national teams in Brazil, Portugal, France, England, Croatia and the Netherlands, which could help the company gain brand recognition and show off product innovations such as new performance fabrics, he said.

By contrast, Nike's closest competitor, Adidas (XE:ADS) (ADDYY), has a smaller marketing budget of about $3 billion and is likely to sponsor just four of the best teams - Argentina, Spain, Belgium and Germany, per RBC.

"We would expect Nike to utilize its spend advantage at a time when it is revamping its product offer and needs to increase product awareness," Dadhania wrote.

RBC upgraded Nike's stock to outperform from sector-perform, while hiking its price target to $90 from $76. That new target implies the potential for a roughly 25% boost in Nike's stock price over the next 12 months.

The firm now expects Nike to generate 2026 revenue of $47.3 billion, up from its earlier view of $46.5 billion and well above the FactSet consensus estimate of $45.91 billion.

Nike's product pipeline "is already looking stronger" in running and basketball, with Dadhania also bullish on improvements in its apparel lineup starting in this coming January, followed by its 2026 World Cup product launch in March.

Looking ahead, the sporting-goods business is offering Nike a "more favorable environment" for it to stage a comeback in performance categories such as running and training, he noted.

Nike reports its fiscal first-quarter earnings on Sept. 30, with analysts currently expecting the company to generate adjusted profit of 27 cents a share and revenue of $10.98 billion, according to FactSet estimates.

On the company's fiscal fourth-quarter update on June 26, Nike Chief Executive Elliott J. Hill said early feedback on its FIFA product pipeline had been positive, with an uptick in holiday orders from retailers.

"We're finding a better balance with our portfolio of sport performance and new dimensions of sportswear expected to offset the declines in our classic franchise," Hill said, according to a transcript. "We're executing our plans and trending in the right direction but a full recovery will take time."

Nike's stock rose factionally on Thursday and is down by 4.5% in 2025, while the S&P 500 SPX has risen 12.8%. The company's stock has lost about 37% over the past five years as the S&P 500 has doubled.

-Steve Gelsi

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September 18, 2025 12:26 ET (16:26 GMT)

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