Nike Loses Its Spot Among Top 100 American Companies After Nearly 18 Years
New York, Monday, 21 September 2026.
Following a 77% drop in market value, Nike has been removed from the S&P 100 index, forcing index-tracking funds to sell shares as technology firms take its place.
Nike Exited from S&P 100 After 18-Year Tenure
Footwear and apparel giant Nike, Inc. (NYSE: NKE) has officially lost its place in the S&P 100 index prior to the market open on 21 September 2026 [1]. The removal ends a mega-cap index tenure of nearly 18 years for the Oregon-based corporation, following a quarterly review by S&P Dow Jones Indices [4]. This reshuffle reflects shifting market capitalizations and evolving institutional exposure, signaling potential pressure on automated index fund holdings as the company navigates ongoing strategic realignments [1]. While Nike remains listed on the New York Stock Exchange and continues to be part of the S&P 500 index, its exclusion from the top 100 underscores the severity of its recent market performance [4].
Valuation Decline and Financial Performance
The decision follows a 77% loss in market value driven by internal operational issues and external factors, including trade tariffs and supply chain disruptions in Asia [1]. Financial results filed with the SEC show Nike’s fiscal year 2026 results showed $46.4 billion in total revenue and $3.1 billion in net income, representing a 3% decline in profitability [1]. Nike Direct revenue fell 6% to $17.7 billion, which calculates to 38.147 percent of total revenue, while wholesale revenue rose 6% to $27.5 billion [1]. Shares of the sportswear giant are down 43% on the year, with Nike losing some $200 billion in market cap since its 2021 peak as it faces stiff competition [3].
Sector Shifts and Index Rebalancing
The change is part of the quarterly review announced on 4 September 2026, noting that changes are intended to ensure indices are more representative of their market capitalization ranges [1]. Other companies removed from the S&P 100 include Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive, while Dell Technologies, Palo Alto Networks, Arista Networks, and Sandisk were added to increase the index’s technology sector weighting [1]. Analysts note that the U.S. index is becoming increasingly technological, due to the higher valuation of technology companies, leading to index recompositions increasingly leaning towards this technology sector [4]. This exit implies that all funds and ETFs indexed to the S&P 100 will not have Nike shares in their investment portfolios, resulting in reduced demand for its shares [4].
Strategic Realignment and Future Outlook
Nike’s strategy involves prioritizing sports and innovation, reducing specific footwear offerings, and shifting digital platform focus to full-price sales while reinvesting in wholesale distribution [1]. CEO Elliott Hill stated the company has made significant structural improvements to strengthen the brand’s solidity while adjusting operating costs for greater long-term efficiency [1]. However, analysts warn it is difficult to anticipate a recovery in value until Nike clarifies the timing and magnitude of the revenue and margin recovery [4]. Regional performance at constant exchange rates varied, with North America revenue rising 5%, while Greater China fell 13%, highlighting the geographic challenges ahead [1].