NKE earnings analysis
What we found in NKE's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 Converse segments faced challenges with significant declines, recording an 11% drop in Greater China's revenues. Despite various operational challenges, including the recovery of $986 million due to previous tariff adjustments, Nike aims to navigate market uncertainties through strategic innovations and brand management.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Stability Amid Challenges
- Nike reported revenues of $46.4 billion in fiscal 2026, a slight increase from $46.3 billion in 2025.
- North America Revenue Growth
- North America segment revenues increased by 5% year over year, totaling $20.5 billion.
- Successful Tariff Recovery
- Nike recognized a $986 million benefit in fiscal 2026 due to the recovery of IEEPA tariffs.
- Gross Margin Improvement
- Gross margin improved slightly to 42.9% in fiscal 2026 from 42.7% in fiscal 2025.
- Strategic Focus on Brand Management
- Nike is investing significantly in demand creation, with expenses rising 1% to $4.754 billion, which supports key product launches.
- Robust Free Cash Flow
- The company generated $2.868 billion in cash from operations in fiscal 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Greater China Revenue
- Greater China revenues fell by 11% in fiscal 2026, impacting overall profitability.
- Inventory Challenges
- Nike is experiencing elevated inventory levels, with a total adjustment of $213 million reserve related to sales returns as of May 31, 2026.
- Digital Sales Declines
- Nike reported a 12% decline in digital sales, highlighting a shift away from a digital-first strategy.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.1
- Gross margin
- 42.9%
- Operating margin
- 8.3%
- Segment
- North America
- Segment
- Europe, Middle East & Africa
- Segment
- Greater China
- Segment
- Asia Pacific & Latin America
- Segment
- Global Brand Divisions
What they said about what is next.
Annual outlook deferred to earnings press release / call.
The filing reads about the same as the one before it.
What came before.
- 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…
- 10-Q · April 4, 2024
- Nike reported Q3 revenue of $12,429 million, up $39 million versus the prior-year quarter ($12,390 million), with gross profit rising to $5,562 million from $5,371 million. Gross margin expanded while operating margin…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing NKE makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever