The sneaker war between Adidas and Nike has taken a sharp turn, and the scoreboard now favors the German sportswear giant on multiple fronts. While Nike contends with shrinking market share in China, legal headaches, and a turnaround plan that has yet to bear fruit, Adidas is firing on all cylinders — from record-breaking running shoes to a cultural renaissance driven by the Samba and Gazelle franchises. Yet the stock still trades well below its 52-week high of €220.90, leaving investors to weigh a strong operational story against a share price that has lost more than 28% over the past twelve months.
The product pipeline offers the clearest signal of intent. Today, Adidas launches two high-end running shoes simultaneously: the Adizero Adios Pro Evo 3, back on shelves at Dick’s Sporting Goods after turning heads at the London Marathon in April, and the Adizero Adios Pro 4 SATISFY, available via the adidas CONFIRMED app. The latter is the fruit of a newly announced multi-season partnership with technical running brand SATISFY, a collaboration designed to stretch beyond 2026 and carve out a distinct aesthetic in the running community. For SATISFY, an underground favorite among serious runners, the deal is a leap into the mainstream. For Adidas, it buys credibility with a crowd that often eyes big sportswear brands with skepticism. The shoe itself packs Lightstrike Pro foam, a Lightlock upper, and carbon-fiber Energy Rods 2.0 — all engineered for speed.
That product push sits atop a financial turnaround that has reshaped the narrative around the company. Under CEO Bjørn Gulden, Adidas has cleared the Yeezy overhang, tidied up the balance sheet, and refocused on high-margin lifestyle models from the “Terrace” category. Full-year 2025 revenue hit roughly €24.8 billion, with double-digit growth across every segment. More striking is the valuation: the forward price-to-earnings ratio stands at 20.68, well below Nike’s 29.39 and even below the industry average of 22.50. The forward price-to-sales ratio of 0.96x undercuts Adidas’ own five-year average of 1.48x, suggesting the stock has room to run even after a recent tick higher — the shares now trade at €157.00, about 14% above their 30-day low.
The contrast with Nike could hardly be sharper. While Adidas expects earnings per share to grow 32.2% in fiscal 2026, Nike is forecast to see EPS contract by 29.6%. Revenue growth estimates tell a similar tale: +9.9% for Adidas versus +0.2% for Nike. The market is pricing in that divergence — Adidas shares are up roughly 2% year to date, while Nike has shed more than 18% in the same period, even as the S&P 500 has climbed over 12%. Analysts have lifted Adidas’ EPS forecasts by nearly 2% over the past 90 days, and the share buyback program launched in May signals management’s confidence in the cash-flow trajectory.
Should investors sell immediately? Or is it worth buying Adidas?
Nike’s deeper pockets still show in the dividend. The U.S. giant yields 3.67%, more than double Adidas’ 1.84%, and that payout remains covered by free cash flow. For income-focused investors willing to bet on CEO Elliott Hill’s turnaround — a process that involves repairing wholesale relationships and launching new models like the Vomero 18 — Nike offers a waiting premium. But the valuation gap is stark: Nike’s forward P/E of 29 implies investors are pricing in a recovery that hasn’t yet materialized, while Adidas’ cheaper multiple reflects execution that is already visible in the numbers.
Adidas also enjoys a reputational tailwind. The RepTrak 2026 survey ranks it second globally, while Nike has fallen to 50th. The brand’s cultural relevance, from football to streetwear, provides organic demand that doesn’t require heavy discounting. On the technical front, the stock just delivered a breakout signal on above-average volume, and with a one-year beta of 1.17, it moves in line with the broader market — but in the right direction for now.
The risks are not absent. Adidas shares still sit well below their 52-week peak, and the year-long decline of over 28% underscores the damage done before the current recovery. The SATISFY collaboration and new running models are important for staying competitive against upstarts like Hoka and On, but they may not be enough to shift the share price materially on their own. The real catalyst will be the next quarterly report, where investors will look for confirmation that the growth trajectory remains intact.
In the end, the bull case for Adidas is built on a rare combination: a company executing a hot product strategy and delivering double-digit growth, yet trading at a discount to its own history and to a struggling rival. For those willing to look past the lingering chart damage, the entry point may be more attractive than the headlines suggest.
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