Nike Exits the S&P 100 After 18 Years: What NKE Stock's Index Removal Really Means
Nike's 18-year run in the S&P 100 is coming to an end. S&P Dow Jones Indices will remove Nike (NYSE: NKE) from the index on September 21, ending its place among the 100 largest, most established companies tracked alongside the S&P 500. The company will remain in the broader S&P 500, but its departure from the S&P 100 marks how sharply its market value and stock price have declined in recent years.
NKE stock closed at $38.10 on September 8, down roughly 78% from its November 2021 record high. Nike's fiscal 2026 revenue also remained largely flat at $46.4 billion, while NIKE Direct sales fell nearly 6% for the full year.
So, what does Nike's exit from the S&P 100 mean for NKE stock, and can the company's turnaround reverse its decline? This article examines why Nike lost its place in the index, the fundamentals behind the stock's fall, and what investors should watch as the company attempts to recover.
What Happened to Nike in the S&P 100?
Nike will be removed from the S&P 100 before the market opens on September 21, 2026, though it remains part of the broader S&P 500, so the change affects only this one index. S&P Dow Jones Indices announced the move on September 4 as part of its regular quarterly rebalance, closing out an 18 year run that started when Nike joined the index in 2008.
When Does Nike Leave the S&P 100, and Why a Rebalance?
The removal takes effect before trading opens on September 21. That timing lines up with S&P Dow Jones Indices' scheduled quarterly review, a process the index provider runs four times a year to check whether its index members still reflect the market segment each index is meant to track.
The S&P 100 is built to hold 100 of the largest, most established companies within the S&P 500. Each quarter, S&P Dow Jones Indices compares market capitalization across the index and swaps out companies that have fallen behind their peers for ones that better represent that top tier.
The provider has said its rebalances exist to keep each index aligned with the size range it is meant to cover. Nike's shrinking market value relative to other S&P 100 members made it a candidate for removal under that standard. Nike itself made no announcement and took no action to trigger the change.
Which Companies Are Replacing Nike in S&P 100?
Nike is not leaving alone. S&P Dow Jones Indices is removing three other companies from the S&P 100 in the same rebalance: Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive. Four companies are joining in their place: Dell Technologies, Palo Alto Networks, Arista Networks, and SanDisk.
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Leaving the S&P 100
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Joining the S&P 100
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Nike
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Dell Technologies
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Honeywell Aerospace
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Palo Alto Networks
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Simon Property Group
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Arista Networks
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Colgate-Palmolive
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SanDisk
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The pattern behind the swap is worth noting. Two of the four new entrants, Palo Alto Networks and Arista Networks, are cybersecurity and networking companies that have grown alongside enterprise AI infrastructure spending. Dell Technologies and SanDisk sit in hardware and storage, tied to the same data center buildout. Nike's exit points the other way. It is a legacy consumer brand whose market value has shrunk while the companies replacing it have expanded.
That contrast sets up the real question. Nike's stock did not lose value because of an index decision. The index decision is a consequence of the stock losing value. The next section breaks down how much value, and why.
Why Was Nike Removed From the S&P 100?
Nike's declining market value reflects a broader deterioration in its financial performance. The company has struggled to return to the growth and profitability levels it delivered earlier in the decade, while its attempts to reset its product mix and sales channels have taken time to produce results.
Nike's Revenue and Profitability Have Weakened
Nike's financial performance has deteriorated from its recent peak, with revenue still below fiscal 2023 levels and underlying profitability under pressure despite a reported improvement in fiscal 2026 gross margin.
Revenue reached $51.2 billion in fiscal 2023 and $51.4 billion in fiscal 2024 before falling to $46.3 billion in fiscal 2025. Fiscal 2026 revenue was $46.4 billion, essentially flat on a reported basis and down 2% on a currency-neutral basis. In other words, Nike did not meaningfully recover its lost revenue during the latest fiscal year.
Profitability tells a similar story. Full-year gross margin improved from 42.7% in fiscal 2025 to 42.9% in fiscal 2026, but that small increase needs context. Nike's fourth-quarter gross margin jumped to 49.2%, with roughly 900 basis points of the improvement coming from the expected recovery of $986 million in IEEPA tariffs. That means the headline margin improvement was largely driven by a one-time tariff-related benefit rather than a comparable improvement in the underlying business.
The latest quarter also shows the uneven nature of Nike's recovery. Fourth-quarter revenue was $11.0 billion, down 4% on a currency-neutral basis. Wholesale revenue increased 1%, while NIKE Direct revenue fell 9%. Reported diluted EPS of $0.72 included a $0.52 benefit from the expected IEEPA tariff recovery, so the headline earnings figure also overstated the quarter's underlying earnings strength.
Converse added another source of weakness. Full-year Converse revenue fell 31% to $1.2 billion, highlighting that the company's challenges extend beyond its core NIKE Brand.
Nike Is Rebuilding Its Wholesale Business
Nike is rebuilding its wholesale business after spending years prioritizing direct sales through its own stores and digital channels. The strategy initially gave Nike greater control over pricing and its customer relationships, but pulling back from major retail partners also reduced the brand's presence where many consumers shop.
Under CEO Elliott Hill, Nike has been reversing that approach. The company is restoring relationships with retailers, expanding its product presence across wholesale channels and giving partners a larger role in its distribution strategy. Wholesale revenue increased 6% in fiscal 2026, while NIKE Direct revenue declined 6%.
The change is important because Nike's recovery depends on reaching consumers beyond its own stores and website. Early wholesale improvements suggest the strategy is gaining traction, but the company still needs stronger product demand and broader sales growth for the turnaround to take hold.
Does This Change Anything for NKE Stock Itself?
No. Nike's removal from the S&P 100 does not change the company itself or its listing on the stock market. Nike will remain listed on the NYSE and continue to be part of the S&P 500. The main change is that NKE will no longer be included in the S&P 100, which may require funds that track that index to adjust their holdings.
S&P 100 and S&P 500: What's the Real Difference?
The S&P 500 is the broader index, covering roughly 500 leading U.S. companies and about 80% of available U.S. market capitalization. The S&P 100 is a smaller subset of 100 major companies selected from the S&P 500, generally favoring the largest companies with listed options while also considering sector balance.
That means Nike's removal from the S&P 100 is a step down within the index hierarchy, not an exit from the broader S&P 500. Investors holding funds that track the S&P 500 can therefore continue to have exposure to NKE after the September 21 change.
Could Passive Fund Selling Pressure NKE Shares?
Potentially, but the effect should be limited to funds and products that specifically track the S&P 100 or related benchmarks. Those funds generally need to sell a stock when it leaves their tracked index, which can create additional trading volume around the rebalance.
That selling is mechanical rather than a new judgment about Nike's business. Once the index change is completed, NKE's price should continue to be driven primarily by the company's earnings, outlook, investor expectations and broader market conditions.
Is Nike Stock a Buy After the S&P 100 Removal?
Nike's S&P 100 removal does not provide a clear buy or sell signal. Analysts remain divided over whether the stock's depressed valuation offers an opportunity or reflects a turnaround that is taking longer than expected. The debate largely comes down to whether Elliott Hill can restore Nike's product momentum and wholesale strength before further weakness in China and other parts of the business weighs on earnings.
The Bull Case: Elliott Hill's Turnaround Could Unlock Upside
The bullish case rests on the idea that much of Nike's weakness is already reflected in the stock price. Supporters of the turnaround point to Hill's renewed focus on wholesale, product innovation and cleaning up the company's product franchises.
Needham analyst Tom Nikic has argued that Nike's wholesale realignment and improving North American business could provide a path to recovery. Recent wholesale trends also offer some support for that view, with Nike reporting growth in the channel during its latest quarter. The company is also working to rebuild relationships with retailers that it had previously deprioritized.
For investors taking the bullish view, the question is less about whether Nike can return to its previous growth rate immediately and more about whether the current valuation leaves enough room for improvement if the turnaround gains traction.
The Bear Case: Why Some Analysts Remain Cautious
The bearish case is that Nike's recovery remains too narrow and too slow to justify a significant re-rating of the stock. Evercore ISI downgraded Nike to In Line in June, with analyst Michael Binetti arguing that the company's earnings outlook did not provide enough reason to assume a higher valuation multiple.
China remains another major concern. Nike has continued to face weak demand in the region, while its core Sportswear and Jordan franchises remain under pressure. That leaves investors waiting for evidence that the company's product reset is translating into sustained demand rather than simply stabilizing parts of the business.
The result is a divided analyst view. Bulls see a damaged global brand with significant room to recover, while bears see a company that still has to prove that its turnaround can produce durable revenue and earnings growth.
What Nike's Fall From the S&P 100 Signals for Investors
Nike's S&P 100 exit is better viewed as a lagging indicator than a cause of its decline. The index change reflects where Nike stands today after several years of weaker sales, profitability and market value. For investors, the more important question is whether the company can rebuild its competitive position before its declining market share becomes a longer-term problem.
Lessons From Other Blue Chips That Lost Their Index Status
Nike is not the first established company to fall out of a major stock index. Index membership changes as companies grow, shrink and are replaced by businesses that become larger or more representative of the market.
The September 2026 S&P 500 reshuffle provides a recent example. Molson Coors, Trade Desk and Builders FirstSource were removed, while Bloom Energy, Illumina and Everpure were added. These changes do not mean the companies leaving the index suddenly became poor businesses, just as joining an index does not guarantee that a company will outperform. They reflect changes in relative size, eligibility and the composition of the broader market.
The lesson for Nike is therefore less about losing an index label and more about what preceded it. S&P describes the S&P 100 as a subset of the S&P 500 made up of 100 major U.S. blue-chip companies. Nike's departure shows that even an established brand can lose its position among those companies when its market value falls relative to its peers.
Tracking NKE Price Action Alongside Crypto Markets
For traders, Nike's index removal is one of several catalysts worth monitoring rather than a standalone signal to buy or sell NKE. Earnings reports, guidance, product launches, wholesale performance and updates on Elliott Hill's turnaround are likely to have a more direct effect on the stock's outlook.
That makes NKE useful to watch alongside broader market and crypto assets, particularly when risk appetite changes across markets. Investors can compare Nike's price movement with major crypto assets during periods of strong or weak market sentiment, while keeping in mind that the two markets are driven by different companies and macroeconomic factors.
The key date is September 21, when the S&P 100 change takes effect. Beyond that session, the focus returns to Nike's operating performance and whether the turnaround can produce sustained growth.
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Conclusion
Nike's removal from the S&P 100 on September 21 reflects the company's decline in market value after several years of weaker sales, profitability and stock performance. The change does not affect Nike's listing or its membership in the broader S&P 500, although some S&P 100-tracking funds may adjust their holdings.
For NKE stock, the index removal is less important than the underlying turnaround. Nike is rebuilding its wholesale business, working to improve its product lineup and trying to restore growth under CEO Elliott Hill. Investors remain divided, with some seeing the stock's depressed valuation as an opportunity and others waiting for clearer evidence that the turnaround can deliver sustained revenue and earnings growth.
FAQs
Is Nike still in the S&P 500?
Yes. Nike will remain a member of the S&P 500 after leaving the S&P 100 on September 21, 2026. The removal only affects its membership in the smaller S&P 100 index.
Why was Nike removed from the S&P 100?
Nike was removed because its market value has declined relative to other companies eligible for the S&P 100. The change reflects its weaker market position rather than a separate action by Nike.
What happens to NKE stock after Nike leaves the S&P 100?
Nike stock will continue trading normally on the NYSE, and the company will remain in the S&P 500. Some S&P 100-tracking funds may sell NKE shares during the index rebalance.
Is Nike stock a buy after the S&P 100 removal?
The removal itself is not a clear buy or sell signal. The investment case depends more on Nike's turnaround, product demand, wholesale growth, profitability and ability to restore sustained revenue growth.
Can Nike's turnaround succeed under Elliott Hill?
Nike's turnaround could succeed if the company restores product momentum, strengthens wholesale relationships and improves demand across key markets. However, weakness in China and other areas remains a significant risk for investors.
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