10-K · July 15, 2026
Nike, Inc. reported a slight revenue increase to $46.4 billion in fiscal 2026 compared to $46.3 billion in 2025, driven primarily by a 5% revenue growth in North America. However, performance in Greater China and…
Earnings analysis · 10-Q
NKE earnings analysis
Filed October 2, 2026 · Our reading of the company's report
The latest report
NIKE reported a mixed quarter: revenue declined 4% year over year to $11.213B and diluted EPS fell to $0.48 from $0.49, although gross margin expanded 60 basis points to 42.8% and EBIT margin improved to 8.1%. North…
Read full summary
NIKE reported a mixed quarter: revenue declined 4% year over year to $11.213B and diluted EPS fell to $0.48 from $0.49, although gross margin expanded 60 basis points to 42.8% and EBIT margin improved to 8.1%. North America was resilient, but Greater China revenue fell 22% and Converse revenue declined 28%, while operating cash flow dropped to $135M. Management is pursuing a sizable restructuring and cost program, with approximately $1.0B of charges expected against $2.5B of cumulative savings, but the filing provides no new numeric revenue or EPS guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.48
What stood out
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Gross margin expanded
Gross margin increased 60 basis points year over year to 42.8%, primarily from lower warehousing and logistics costs, which contributed approximately 90 basis points.
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Cost discipline lifted EBIT margin
EBIT margin improved to 8.1% from 7.7%, while operating overhead expense declined 6% to $2.658B. Total selling and administrative expense fell 3% to $3.910B despite demand creation expense increasing 5% to $1.252B.
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North America remained resilient
North America revenue grew 2% to $5.127B and EBIT increased 3% to $1.170B. Wholesale revenue rose 9% to $2.981B, partially offsetting a 6% decline in NIKE Direct revenue.
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Apparel outperformed footwear
Apparel revenue increased 2% to $3.384B, with higher average selling prices contributing approximately 4 percentage points of growth, offsetting a 2% decline in unit sales.
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Long-term savings program announced
The Pace program is expected to deliver approximately $2.5B of cumulative savings through fiscal 2031, against approximately $1.0B of expected pre-tax charges.
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Liquidity remained substantial
Cash and equivalents plus short-term investments totaled $8.4B as of August 31, 2026, and no amounts were outstanding under the $3.0B commercial paper program or committed credit facilities.
What to watch
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Revenue and digital channel contraction
Consolidated revenue declined 4% to $11.213B, while NIKE Direct revenue fell 8% to $4.142B. NIKE Brand Digital sales declined 13% to $1.8B, indicating continued channel pressure.
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Greater China weakness intensified
Greater China revenue fell 22% to $1.180B, or 26% on a currency-neutral basis, and EBIT declined 34% to $248M. Management cited declining store traffic, elevated promotional activity and higher marketplace inventory.
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Inventory and markdown pressure
Inventories were $7.8B at August 31, 2026, up 5% from May 31, 2026. Management is liquidating inventory through increased markdowns, while lower ASP and higher discounts reduced gross margin by approximately 30 basis points.
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Restructuring execution risk
The Pace program carries approximately $1.0B of expected pre-tax charges, with approximately $0.3B expected in fiscal 2027 and the remainder through fiscal 2031. NIKE states that actual charges, savings and cash expenditures may differ materially from estimates.
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Weak cash conversion
Operating cash flow declined to $135M from $222M in the prior-year quarter, primarily because working-capital changes reduced cash by $846M. Investing cash use increased to $192M from $59M, primarily due to property, plant and equipment additions.
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No formal risk-factor changes
The company stated that there were no material changes to the risk factors in its Annual Report for the fiscal year ended May 31, 2026. The 10-Q nevertheless identifies geopolitical dynamics, tariff policies and foreign-exchange fluctuations as factors that could materially affect revenue and profitability.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management expects the Pace program to generate approximately $2.5B of cumulative savings through fiscal 2031, with approximately $1.0B of pre-tax charges, including approximately $0.3B in fiscal 2027; actual savings, charges and cash expenditures may differ materially.
Earlier filings 4
10-Q · April 1, 2026
Nike reported quarter revenues essentially flat year-over-year at $11,279 million (Q3 FY26 vs $11,269 million Q3 FY25) but declined versus the prior quarter (Q2 FY26 $12,430 million). Gross margin compressed to ~40.2%…
10-Q · December 30, 2025
NIKE reported quarter revenue of $12,427 million (up $73 million vs. prior-year quarter $12,354 million) with diluted EPS of $0.53. Gross margin compressed to 40.6% from 43.6% a year earlier, driving a decline in income…
10-Q · April 3, 2025
Nike reported quarterly revenue of $11,269 million and diluted EPS of $0.54 for the three months ended February 28, 2025. Revenue and margins contracted versus the prior-year quarter (revenue down $1,160 million, gross…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.