Nike's stock soared 5.04% during Wednesday's intraday session, reversing from earlier losses as investors digested the company's latest quarterly results and signs of improving profitability.

The athletic apparel maker reported fiscal fourth-quarter earnings that topped Wall Street estimates, with profits getting a significant boost from expected tariff refunds. Despite a year-over-year decline in revenue and persistent weakness in the key China market, investors focused on early indications of margin improvement and the company's ongoing turnaround efforts under CEO Elliott Hill.

Analysts noted that while Nike's recovery remains uneven with challenges in sportswear and direct-to-consumer sales, the company forecast a slightly positive first-quarter gross margin. This margin relief, combined with the earnings beat, helped soften concerns about the prolonged turnaround timeline, leading to the stock's substantial intraday gain.