Nike is being removed from the S&P 100 index before US markets open on Monday, September 21, ending an approximately 18-year run in the mega-cap gauge. S&P Dow Jones Indices confirmed the change as part of its quarterly rebalance, with Honeywell Aerospace, Simon Property Group and Colgate-Palmolive also leaving. Their seats will be taken by Dell Technologies, Palo Alto Networks, Arista Networks and SanDisk, a lineup dominated by AI infrastructure, cloud networking, cybersecurity and storage.
The index decision formalizes a collapse in Nike's market position. The stock closed around $38 on Friday, down about 40% this year and roughly 78% from its late-2021 peak near $180. More than $220 billion in market value has been erased, with Nike's market capitalization falling from roughly $280 billion at its high to about $57 billion now. Revenue has slipped from $51.2 billion in fiscal 2023 to $46.4 billion in fiscal 2026, while operating margin narrowed from 15.6% in fiscal 2021 to 8.2% in fiscal 2026.
Nike's most recent quarterly results beat modest expectations, with adjusted earnings of 20 cents per share versus the 13 cents analysts expected and revenue of $11 billion against a $10.9 billion estimate. Still, the company expects sales to keep declining through the first half of fiscal 2027, projecting a low- to mid-single-digit revenue drop between March and November. Weakness remains concentrated in Nike Direct, Nike Brand Digital and Converse, while Greater China revenue has fallen for eight consecutive quarters and is down roughly 30% since 2021.
The incoming SanDisk illustrates the rotation underway. The flash-memory maker jumped 11.9% to about $1,740 and is up more than 600% year to date, supported by AI data center demand and a roughly 70% quarter-on-quarter increase in NAND flash revenue. Its market value near $255 billion is more than four times Nike's, underscoring how the index rebalance reflects a shift from consumer brands to AI infrastructure rather than merely a single stock's decline.
For long-term holders, the S&P 100 removal has limited mechanical selling pressure because the index is tracked by far fewer assets than the S&P 500. The more important signal is the business turnaround under CEO Elliott Hill, centered on rebuilding wholesale relationships, clearing inventory, reviving performance footwear and stabilizing China.
