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NIKE, Inc. (NYSE:<a class="ticker" href="https://www.benzin...

NIKE, Inc. Reports Fiscal 2026 Fourth Quarter and Full Year Results

Nike Delivers Margin Gain From Tariff Recovery Despite Slower International Revenue

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    <h3>Information</h3>
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NIKE, Inc. (NYSE:&lt;a class=&quot;ticker&quot; href=&quot;https://www.benzin...</p>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Nike reported fiscal 2026 results with Q4 revenue of $11.0B and full-year revenue of $46.4B, flat on a reported basis. The company posted a Q4 gross margin of 49.2%, boosted by an approximate 900 basis point tariff recovery, contributing about $0.52 to earnings per share to reach $0.72. While margins improved, top-line headwinds persist in Greater China and EMEA, and Nike Direct revenues declined, underscoring a bifurcated demand environment amid ongoing cost discipline and portio nal restructuring.</p>
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    <h3>Key Points</h3>
    <ul><li>Q4 revenue $11.0B; full-year $46.4B, flat on reported basis.</li><li>Q4 gross margin 49.2%, up 890 bps from IEEPA tariff recovery.</li><li>Q4 EPS $0.72 includes a $0.52 tariff-related gain.</li><li>Nike Direct down 9% in Q4; Converse down 34% currency-neutral.</li><li>FY2026 dividends $2.4B and buybacks $123M, with tariff tailwinds.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>NIKE, Inc. (NKE)</strong>: Primary beneficiary of tariff-driven margin expansion; topside margin uplift supports EPS, while top-line headwinds persist in international markets.</li><li><strong>Converse (Nike subsidiary) (N/A)</strong>: Converse revenue decline contributed to weaker NIKE Brand performance in Q4; margin implications depend on brand mix and cost actions.</li><li><strong>Jordan Brand (N/A)</strong>: Jordan Brand revenues were $7,034M in FY2026 vs. $7,270M in 2025; down ~3% year over year, a drag on Nike Brand portion.</li></ul>
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    <h3>Earnings</h3>
    <p>Category: Earnings. The release centers on NIKE’s quarterly and annual results, highlighting margin expansion from tariff recoveries and ongoing revenue pressures in international markets, consistent with an earnings-driven assessment of profitability, cash flow, and capital returns.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Tariff recovery under IEEPA boosted Q4 gross margin by ~900 bps.</li><li>Q4 EPS includes a $0.52 tariff-related gain, boosting reported profitability.</li><li>Converse and Nike Direct softness remain ongoing headwinds.</li><li>Strong cash returns: dividends and small buybacks support risk appetite.</li></ul>
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    <h3>Key Facts</h3>
    <ul><li>Q4 2026 revenues: $11.0B; FY2026 revenues: $46.4B.</li><li>Q4 gross margin: 49.2%; gross margin uplift largely from IEEPA tariff recovery (~$986M).</li><li>Q4 diluted EPS: $0.72; includes $0.52 tariff benefit.</li><li>Converse Q4 revenue: $244M; down 32% on reported basis, 34% currency-neutral.</li><li>FY2026 dividends: $2.4B; share repurchases: $123M.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Bullish bias for NKE in the near term on tariff-driven margin upside; watch China/EMEA demand, 1–3 quarters.</p>
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  <h2>NIKE, Inc. Reports Fiscal 2026 Fourth Quarter and Full Year Results</h2>

  <p>NIKE, Inc. (NKE) today reported its fiscal 2026 fourth quarter and full-year results for the period ended May 31, 2026. The results highlight continued profitability progress amid top-line headwinds as the company strengthens its foundation and positions to scale its strategic initiatives under the NKE ticker.</p>

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    <h3>Key Financial Highlights</h3>
    <ul>
      <li><strong>Full year revenues</strong> were <strong>$46.4 billion</strong>, flat on a reported basis and down 2 percent on a currency-neutral basis</li>
      <li><strong>Fourth quarter revenues</strong> were <strong>$11.0 billion</strong>, down 1 percent on a reported basis and down 4 percent on a currency-neutral basis</li>
      <li><strong>Wholesale revenues</strong> for the fourth quarter were <strong>$6.6 billion</strong>, up 4 percent on a reported basis and up 1 percent on a currency-neutral basis</li>
      <li><strong>NIKE Direct revenues</strong> for the fourth quarter were <strong>$4.1 billion</strong>, down 7 percent on a reported basis and down 9 percent on a currency-neutral basis</li>
      <li><strong>Gross margin</strong> for the fourth quarter increased <strong>890 basis points</strong> to <strong>49.2 percent</strong>, including an approximately <strong>900 basis point</strong> benefit due to the expected recovery of the <em>IEEPA</em> tariffs</li>
      <li><strong>Diluted earnings per share</strong> was <strong>$0.72</strong> for the fourth quarter, including a <strong>$0.52</strong> benefit related to the expected recovery of the <em>IEEPA</em> tariffs</li>
    </ul>
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  <section>
    <p>“In fiscal 2026, we took decisive actions to strengthen the foundation of NIKE, Inc. and reposition our business for long-term growth,” said Elliott Hill, President and Chief Executive Officer, NIKE, Inc. “We made meaningful structural improvements to lay the groundwork for our Sport Offense across our team culture, innovative product, brand strength, and how we serve consumers in our countries and cities. While we continue to face top-line headwinds, we’re encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential.”</p>

    <p>“We delivered fourth quarter results in line with our expectations, demonstrating financial discipline in an increasingly challenging operating environment, where sell-through remains challenged,” said Matthew Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. “We are improving the health of our business, managing our product portfolio and investing in marketplace elevation, while adjusting our operating costs for greater efficiency over time.”</p>
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    <h3>Fourth Quarter Income Statement Review</h3>
    <ul>
      <li><strong>Revenues</strong> for NIKE, Inc. were <strong>$11.0 billion</strong>, down 1 percent on a reported basis and down 4 percent on a currency-neutral basis.
        <ul>
          <li>Revenues for the NIKE Brand were <strong>$10.7 billion</strong>, flat on a reported basis and down 3 percent on a currency-neutral basis, primarily due to declines in Greater China and EMEA, partially offset by growth in North America.</li>
          <li>Wholesale revenues were <strong>$6.6 billion</strong>, up 4 percent on a reported basis and up 1 percent on a currency-neutral basis, primarily due to growth in North America, partially offset by declines in Greater China.</li>
          <li>NIKE Direct revenues were <strong>$4.1 billion</strong>, down 7 percent on a reported basis and down 9 percent on a currency-neutral basis, due to a 12 percent decrease in NIKE Brand Digital and a 7 percent decrease in NIKE-owned stores.</li>
          <li>Revenues for Converse were <strong>$244 million</strong>, down 32 percent on a reported basis and down 34 percent on a currency-neutral basis, due to declines across all territories.</li>
        </ul>
      </li>
      <li><strong>Gross margin</strong> increased <strong>890 basis points</strong> to <strong>49.2 percent</strong>, primarily due to the expected recovery of the <em>IEEPA</em> tariffs. The expected recovery of the <em>IEEPA</em> tariffs of <strong>$986 million</strong> increased gross margin by approximately <strong>900 basis points</strong>.</li>
      <li><strong>Selling and administrative expense</strong> decreased 2 percent to <strong>$4.1 billion</strong>.
        <ul>
          <li><strong>Demand creation expense</strong> was <strong>$1.2 billion</strong>, down 4 percent, primarily due to lower brand marketing expense, partially offset by unfavorable changes in foreign currency exchange rates.</li>
          <li><strong>Operating overhead expense</strong> was <strong>$2.9 billion</strong>, down 1 percent, due to lower other administrative costs, partially offset by unfavorable changes in foreign currency exchange rates and higher wage-related expense.</li>
        </ul>
      </li>
      <li>The <strong>effective tax rate</strong> was <strong>19.6 percent</strong>, compared to <strong>33.6 percent</strong> for the same period last year, primarily due to stock-based compensation and prior year one-time items that had an outsized impact on the tax rate because of lower pre-tax income in the prior year.</li>
      <li><strong>Net income</strong> was <strong>$1.1 billion</strong>, up <strong>407 percent</strong>, and <strong>Diluted earnings per share</strong> was <strong>$0.72</strong>, including a <strong>$0.52</strong> benefit related to the expected recovery of the <em>IEEPA</em> tariffs.</li>
    </ul>
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    <h3>Fiscal 2026 Income Statement Review</h3>
    <ul>
      <li><strong>Revenues</strong> for NIKE, Inc. were <strong>$46.4 billion</strong>, flat on a reported basis and down 2 percent on a currency-neutral basis.
        <ul>
          <li>Revenues for the NIKE Brand were <strong>$45.2 billion</strong>, up 1 percent on a reported basis and down 1 percent on a currency-neutral basis, primarily due to declines in Greater China and EMEA, partially offset by growth in North America.</li>
          <li>Wholesale revenues were <strong>$27.5 billion</strong>, up 6 percent on a reported basis and up 4 percent on a currency-neutral basis.</li>
          <li>NIKE Direct revenues were <strong>$17.7 billion</strong>, down 6 percent on a reported basis and down 8 percent on a currency-neutral basis, due to a 12 percent decrease in NIKE Brand Digital and a 4 percent decrease in NIKE-owned stores.</li>
          <li>Revenues for Converse were <strong>$1.2 billion</strong>, down 31 percent on a reported basis and down 32 percent on a currency-neutral basis, due to declines across all territories.</li>
        </ul>
      </li>
      <li><strong>Gross margin</strong> increased <strong>20 basis points</strong> to <strong>42.9 percent</strong>.</li>
    </ul>
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</article>

Nike reported fiscal 2026 results with Q4 revenue of $11.0B and full-year revenue of $46.4B, flat on a reported basis. The company posted a Q4 gross margin of 49.2%, boosted by an approximate 900 basis point tariff recovery, contributing about $0.52 to earnings per share to reach $0.72. While margins improved, top-line headwinds persist in Greater China and EMEA, and Nike Direct revenues declined, underscoring a bifurcated demand environment amid ongoing cost discipline and portio nal restructuring.

NIKE, Inc. Reports Fiscal 2026 Fourth Quarter and Full Year Results

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Earnings

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