Nike to Be Dropped from S&P 100 Index as Tech Giants Take Over
Nike will exit the prestigious S&P 100 index on September 21, ending an 18-year run. The sports brand is being replaced by tech firms including Dell and Palo Alto Networks amid shifting market dynamics.
Nike is losing its spot in Wall Street's elite club. S&P Dow Jones Indices announced that the company will exit the S&P 100 index on September 21, where it has been a member since 2008.
Concurrently, Dell, Palo Alto Networks, Arista Networks, and SanDisk will join the index, while Nike, Simon Property, Colgate, and Honeywell Aerospace will be removed. Notably, all four incoming companies belong to the technology sector.
It is important to emphasize that Nike is not leaving the broader S&P 500 index, nor is it being delisted. Its shares will continue to trade normally on the New York Stock Exchange. The change only affects the S&P 100, a select index tracking the largest and most prominent US corporations.
Declining Performance and Competition
This decision follows a dramatic decline in the company's market valuation. Nike has been grappling with intensifying competition from emerging brands like Hoka and On, alongside internal operational weaknesses.
In fiscal year 2026, Nike reported revenue of $46.4 billion, flat year-over-year in reported terms and down 2% on a currency-neutral basis. Direct-to-consumer sales fell by 8% currency-neutral, while wholesale revenues to retailers rose by 4%. The company stated it is actively rebuilding its relationships with retail partners and addressing ongoing demand weakness in China.
A Symbolic Shift on Wall Street
This index reshuffle offers a symbolic snapshot of Wall Street in 2026: four non-tech companies are exiting to make way for four tech firms representing servers, cybersecurity, networking, and storage—the foundational infrastructure powering the artificial intelligence era.
