The deterioration in Nike’s equity value has reached an important symbolic milestone. S&P Dow Jones Indices announced that NIKE Inc. will be removed from the S&P 100 effective before the market opens on September 21, 2026, as part of the quarterly index rebalance. The decision comes after years of underperformance that have reduced Nike from one of the largest consumer brands in U.S. equities to a company with a market capitalization of roughly $57 billion.

A Historic Share-Price Decline Reshapes Nike’s Market Status

Nike shares closed at approximately $38.40 on September 4, leaving the stock nearly 80% below its record closing high of $177.51 reached in November 2021. The decline has erased more than $200 billion in equity value from the company, broadly consistent with the approximately $230 billion market-capitalization loss highlighted in the source image.

The scale of the decline is significant because the stock’s weakness has persisted through multiple stages of Nike’s attempted turnaround. Rather than representing a short-term correction, the decline has reflected a prolonged reassessment of the company’s growth trajectory, profitability and competitive position.

The S&P 100 is designed to represent major U.S. blue-chip companies and is weighted by float-adjusted market capitalization. Nike’s removal therefore illustrates how a sustained reduction in equity value can eventually affect index membership, even for one of the world’s most recognizable consumer brands.

Nike’s Fundamental Problems Extend Beyond the Stock Price

The share-price collapse has coincided with a deterioration in several operating indicators. Nike reported $46.4 billion in fiscal 2026 revenue, essentially flat from the previous year but down 2% on a currency-neutral basis. More importantly, the company’s revenue remains materially below the $51.4 billion reported in fiscal 2024.

The pressure has been particularly visible in Greater China and Nike’s direct-to-consumer operations. Fiscal 2026 Greater China revenue declined 13% on a currency-neutral basis, while NIKE Direct revenue fell 6% on a reported basis and 8% on a currency-neutral basis. NIKE Brand digital revenue declined 12%, highlighting the difficulty of rebuilding momentum through the company’s own digital ecosystem.

Profitability also remains below historical levels. Nike’s fiscal 2026 gross margin was 42.9%, while EBIT margin was approximately 8.3%, compared with 12.7% in fiscal 2024. Although margins have shown signs of stabilization, the company still needs sustained revenue growth and stronger product demand to restore its previous earnings profile.

The S&P 100 Shift Also Reflects a Changing U.S. Equity Market

Nike’s departure is occurring alongside a broader reshaping of the S&P 100. S&P Dow Jones Indices is adding Dell Technologies, Palo Alto Networks, Arista Networks and Sandisk, while removing Nike, Honeywell Aerospace, Simon Property Group and Colgate-Palmolive.

The composition change illustrates the increasing weight of technology and infrastructure companies within the large-cap U.S. equity landscape. As of August 31, information technology represented approximately 43.8% of the S&P 100, according to S&P Dow Jones Indices.

For Nike, however, the most important distinction is that the company is not being removed from the S&P 500. The September action concerns the narrower S&P 100, meaning Nike will continue to be represented in the broader benchmark. Nevertheless, losing membership in the large-cap blue-chip index is a visible indication of how far the company’s market valuation has fallen.

Nike’s management now faces a more consequential test than restoring index status. CEO Elliott Hill has been restructuring the business around product innovation, marketplace health, cost discipline and what the company calls its “Sport Offense” strategy. Fiscal 2026 results showed progress in wholesale revenue and gross-margin stabilization, but continued weakness in China, digital sales and overall demand remains a substantial challenge.

The next phase of Nike’s turnaround will therefore be judged less by its position in an index and more by whether the company can consistently rebuild revenue growth, product momentum and operating profitability. Investors and global markets will be watching upcoming earnings for evidence that the structural decline has stabilized rather than simply produced a lower valuation for the same underlying business.