AI Takeaway
In FY2026, NIKE's revenue was roughly flat at $46.4B (+0.2% YoY) and gross margin expanded modestly to 42.9%, but net income fell 3.4% to $3.108B and operating cash flow dropped 22.4% to $2.868B as North America growth was offset by steep declines in Greater China and Converse amid ongoing brand and marketplace reset efforts.
Revenue
$46.4B
++0.19% YoY
EPS (Basic)
$2.10
-3.23% YoY
Gross Margin
42.9%
++0.18% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
NIKE, Inc. Revenues were $46.4 billion in fiscal 2026 versus $46.3 billion in fiscal 2025, flat on a reported basis but down 2% currency-neutral. North America revenues increased ~5% currency-neutral (to $20.5B), while Greater China fell 13% currency-neutral (to $5.85B), Converse fell 32% currency-neutral (to $1.17B), and EMEA declined 3% currency-neutral.
Source: 10-K Item 7 MD&A, p.32-33
Following a February 20, 2026 U.S. Supreme Court ruling that IEEPA tariffs were unauthorized, NIKE deemed recovery of previously paid tariffs probable and recognized a $986 million benefit in Cost of sales in Q4 FY2026, largely offsetting IEEPA tariff costs incurred during the year ($965M in North America, $21M in Converse). As of May 31, 2026, $302 million had been received with $684 million still outstanding in receivables.
Source: 10-K Item 7 MD&A - Other Matters, p.30
NIKE recognized $385 million in employee severance costs in fiscal 2026 as part of ongoing efforts to realign costs across supply chain and technology functions, and management indicated additional charges may occur in future quarters as evaluation continues.
Source: 10-K Item 7 MD&A, p.30
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Upgrade to unlockThe filing notes a trend of declining store traffic, elevated promotional activity, and higher inventory levels across the Greater China marketplace, which is negatively impacting revenues and profitability; Greater China EBIT fell 20% to $1.278 billion in fiscal 2026, and management expects negative impacts to continue throughout fiscal 2027.
Source: 10-K Item 7 MD&A, p.30
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.20 versus the $0.13 analyst consensus — a +50.2% beat for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $46.4B | $46.31B | +0.19% |
Cost of Revenue | $26.49B | $26.52B | -0.12% |
Gross Profit | $19.91B | $19.79B | +0.61% |
Net Income | $3.11B | $3.22B | -3.45% |
EPS (Basic) | $2.10 | $2.17 | -3.23% |
EPS (Diluted) | $2.10 | $2.16 | -2.78% |
SG&A Expense | $16.11B | $16.09B | +0.16% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $38.41B | $36.58B | +5.01% |
Current Assets | $24.6B | $23.36B | +5.31% |
Current Liabilities | $12.55B | $10.57B | +18.75% |
Stockholders' Equity | $14.87B | $13.21B | +12.50% |
Cash & Equivalents | $7.56B | $7.46B | +1.33% |
Long-Term Debt | $7.94B | $7.96B | -0.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.87B | $3.7B | -22.44% |
Investing Cash Flow | $-488M | $-275M | -77.45% |
Financing Cash Flow | $-2.29B | $-5.82B | +60.62% |
Share Buybacks | $146M | $2.98B | -95.11% |
D&A | $747M | $775M | -3.61% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 42.9% | 42.7% | +0.18% |
Net Margin | 6.7% | — | — |
ROE | 20.9% | — | — |
ROA | 8.1% | — | — |
Current Ratio | $1.961 | — | — |
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The filing does not disclose analyst consensus estimates, so a direct beat/miss comparison cannot be confirmed from this 10-K. What is confirmed is that NIKE's FY2026 revenue was roughly flat at $46.4 billion (+0.2% YoY) while net income declined 3.4% to $3.108 billion and diluted EPS fell to $2.10 from $2.16.
NIKE, Inc. revenues were $46.4 billion in FY2026, flat on a reported basis but down 2% on a currency-neutral basis versus FY2025's $46.3 billion. North America grew 5% currency-neutral, while Greater China declined 13% and Converse declined 32%, dragging down the consolidated currency-neutral result.
Net income fell 3.4% to $3.108 billion primarily because the effective tax rate rose to 20.3% from 17.1%, driven by the absence of a prior-year one-time non-cash deferred tax benefit; pre-tax income was actually flat at $3.9 billion year-over-year.
Key company-specific risks included continued deterioration in the Greater China marketplace (EBIT down 20% to $1.278 billion), a struggling Converse brand reset (EBIT down 93% to $18 million), and uncertainty around evolving tariff policies, including a $986 million IEEPA tariff recovery benefit recognized in Q4 FY2026.
Operating cash flow declined 22.4% to $2.868 billion from $3.698 billion in FY2025, a notable divergence from relatively stable net income, likely reflecting working capital changes such as increased accounts receivable including outstanding IEEPA tariff receivables of $684 million as of May 31, 2026.