Nike, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 31 March 2026: press release. The quarter’s numbers.

Key takeaways

Revenue flat, down 3% currency-neutral: Revenue was $11.3 billion, flat on a reported basis and down 3 percent currency-neutral. Nine-month revenue was $35.4 billion, up 1 percent. Source
Net income and diluted EPS down 35%: Net income was $0.5 billion, down 35 percent. Diluted EPS was $0.35 against $0.54 a year earlier. Nine-month diluted EPS was $1.38, down 32 percent. Source
Wholesale up 5%, led by North America: Wholesale revenue was $6.5 billion, up 5 percent reported and up 1 percent currency-neutral, mainly from North America. Source
NIKE Direct, digital and stores decline: NIKE Direct revenue was $4.5 billion, down 4 percent reported and down 7 percent currency-neutral. NIKE Brand Digital fell 9 percent and NIKE-owned stores fell 5 percent. Source
Gross margin down 130 basis points: Gross margin was 40.2 percent, against 41.5 percent a year earlier. The company cited higher tariffs in North America as the primary cause. Source
Overhead up 3% on severance costs: Operating overhead was $2.9 billion, up 3 percent. The prior quarter showed a 4 percent decrease in overhead. Source
Cash and investments down $2.3 billion: Cash and short-term investments were $8.1 billion, down about $2.3 billion. The company said operating cash generation was more than offset by dividends, bond repayment, capital expenditures and share repurchases. Source
Win Now actions continue through calendar year: Management said Win Now actions will keep affecting results for the rest of the calendar year, and it remains confident in long-term profitable growth. Source

“This quarter we took meaningful actions to improve the health and quality of our business. The pace of progress is different across the portfolio and the areas we prioritized first continue to drive momentum,”
Elliott Hill, President and Chief Executive Officer, NIKE, Inc.

Results and growth drivers

Revenue flat, down 3% currency-neutral: Revenue was $11.3 billion, flat on a reported basis and down 3 percent currency-neutral. Nine-month revenue was $35.4 billion, up 1 percent. Source
Net income and diluted EPS down 35%: Net income was $0.5 billion, down 35 percent. Diluted EPS was $0.35 against $0.54 a year earlier. Nine-month diluted EPS was $1.38, down 32 percent. Source
Tax rate up on prior-year benefit: The effective tax rate was 20.0 percent against 5.9 percent a year earlier. The company attributed the prior-year rate to a one-time, non-cash deferred tax benefit. Source

Segments and regions

NIKE Brand down 2% currency-neutral: NIKE Brand revenue was $11.0 billion, up 1 percent reported and down 2 percent currency-neutral. Declines in EMEA and Greater China were partly offset by North America growth. Source
North America revenue up, EBIT down: North America revenue was $5.0 billion, up 3 percent. North America EBIT was $981 million, down 11 percent. Source
Greater China revenue down, EBIT up: Greater China revenue was $1.6 billion, down 7 percent reported and down 10 percent currency-neutral. Greater China EBIT was $467 million, up 11 percent. Source
EMEA revenue up, EBIT up: EMEA revenue was $2.9 billion, up 2 percent reported and down 7 percent currency-neutral. EMEA EBIT was $515 million, up 7 percent. Source
Converse revenue down 35%: Converse revenue was $264 million, down 35 percent reported and down 37 percent currency-neutral. Converse EBIT was a loss of $40 million, against $39 million of income a year earlier. Source

“We delivered third quarter results in line with our expectations, and our teams continue to execute with discipline,”
Matthew Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc.

Products and channels

Wholesale up 5%, led by North America: Wholesale revenue was $6.5 billion, up 5 percent reported and up 1 percent currency-neutral, mainly from North America. Source
Wholesale growth slowed from prior quarter: Wholesale revenue was $7.5 billion in the prior quarter, up 8 percent reported and currency-neutral, also mainly from North America.
NIKE Direct, digital and stores decline: NIKE Direct revenue was $4.5 billion, down 4 percent reported and down 7 percent currency-neutral. NIKE Brand Digital fell 9 percent and NIKE-owned stores fell 5 percent. Source

Gross margin and tariffs

Gross margin down 130 basis points: Gross margin was 40.2 percent, against 41.5 percent a year earlier. The company cited higher tariffs in North America as the primary cause. Source
Prior-quarter margin decline was larger: In the prior quarter, gross margin fell 300 basis points to 40.6 percent, also primarily because of higher tariffs in North America.
Total EBIT and EBIT margin lower: Total EBIT was $635 million, down 23 percent. EBIT margin was 5.6 percent, against 7.3 percent a year earlier. Nine-month EBIT margin was 7.1 percent. Source

Operating expenses

Selling and administrative expense up 2%: Selling and administrative expense was $4.0 billion, up 2 percent, equal to 35.3 percent of revenue against 34.5 percent a year earlier. Source
Demand creation flat year over year: Demand creation expense was $1.1 billion, flat. Higher sports marketing and unfavorable currency changes were offset by lower brand marketing. In the prior quarter it rose 13 percent. Source
Overhead up 3% on severance costs: Operating overhead was $2.9 billion, up 3 percent. The prior quarter showed a 4 percent decrease in overhead. Source

Inventory and receivables

Inventory down 1% on fewer units: Inventories were $7.5 billion, down 1 percent, reflecting fewer units and product mix shifts, partly offset by higher product costs from North America tariffs. Source
Receivables up 20%: Accounts receivable were $5.4 billion, up 20 percent from $4.5 billion a year earlier. Source
Accrued liabilities up, tax payable down: Accrued liabilities were $6.2 billion, up 5 percent. Income taxes payable were $275 million, down 63 percent. Source

Cash, capital and returns

Cash and investments down $2.3 billion: Cash and short-term investments were $8.1 billion, down about $2.3 billion. The company said operating cash generation was more than offset by dividends, bond repayment, capital expenditures and share repurchases. Source
Dividends returned $609 million: Dividends were about $609 million, up 3 percent. Dividends declared per share were $0.410, against $0.400 a year earlier. The company cited 24 consecutive years of increasing dividend payouts. Source
Long-term debt down 12%: Long-term debt was $7.0 billion, down 12 percent from $8.0 billion a year earlier. Operating lease liabilities were $2.7 billion, up 7 percent. Source

Strategy and progress

Win Now actions continue through calendar year: Management said Win Now actions will keep affecting results for the rest of the calendar year, and it remains confident in long-term profitable growth. Source
Work described as unfinished: The chief executive said the work is not finished, though the direction is clear and teams are moving with focus and urgency. Source
Prior quarter described as middle innings: In the prior quarter, the company described its comeback as in the middle innings, with progress in the areas prioritized first.

Risks management discussed

Regulatory: Management cited higher North America tariffs as the main reason gross margin fell, and tariffs also raised product costs in inventory. Source
Demand: Converse revenue was $264 million, down 35 percent reported, with declines in all territories. Source
Financial: Cash and short-term investments fell by about $2.3 billion as shareholder payouts, debt repayment and capital spending exceeded operating cash generation. Source
Operational: Employee severance costs raised operating overhead in the quarter. Source

Earlier plans management reported on

Met: Management said third-quarter results were in line with its expectations. Source
Not stated: Management said Win Now actions will continue to affect results over the rest of the calendar year. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

NIKE, INC. REPORTS FISCAL 2026 THIRD QUARTER RESULTS

BEAVERTON, Ore., Mar. 31, 2026 - NIKE, Inc. (NYSE:NKE) today reported fiscal 2026 financial results for its third quarter ended February 28, 2026.

Third quarter revenues were $11.3 billion, flat on a reported basis and down 3 percent on a currency-neutral basis*
Wholesale revenues were $6.5 billion, up 5 percent on a reported basis and up 1 percent on a currency-neutral basis
NIKE Direct revenues were $4.5 billion, down 4 percent on a reported basis and down 7 percent on a currency-neutral basis
Gross margin decreased 130 basis points to 40.2 percent
Diluted earnings per share was $0.35

"This quarter we took meaningful actions to improve the health and quality of our business. The pace of progress is different across the portfolio and the areas we prioritized first continue to drive momentum," said Elliott Hill, President and Chief Executive Officer, NIKE, Inc. "The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of NIKE."

"We delivered third quarter results in line with our expectations, and our teams continue to execute with discipline," said Matthew Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. "Win Now actions will continue to impact results over the balance of the calendar year, and we remain confident in our ability to position the Company for profitable growth long-term."

Third Quarter Income Statement Review

Revenues for NIKE, Inc. were $11.3 billion, flat on a reported basis and down 3 percent on a currency-neutral basis.
NIKE Brand revenues were $11.0 billion, up 1 percent on a reported basis and down 2 percent on a currency-neutral basis, primarily due to declines in EMEA and Greater China, partially offset by growth in North America.
Wholesale revenues were $6.5 billion, up 5 percent on a reported basis and up 1 percent on a currency-neutral basis, primarily due to growth in North America.
NIKE Direct revenues were $4.5 billion, down 4 percent on a reported basis and down 7 percent on a currency-neutral basis, due to a 9 percent decrease in NIKE Brand Digital and a 5 percent decrease in NIKE-owned stores.
Revenues for Converse were $264 million, down 35 percent on a reported basis and down 37 percent on a currency-neutral basis, due to declines across all territories.
Gross margin decreased 130 basis points to 40.2 percent, primarily due to higher tariffs in North America.
Selling and administrative expense increased 2 percent to $4.0 billion.
Demand creation expense was $1.1 billion, flat compared to the prior year, as higher sports marketing expense and unfavorable changes in foreign currency exchange rates were offset by lower brand marketing expense.
Operating overhead expense was $2.9 billion, up 3 percent, due to employee severance costs and unfavorable changes in foreign currency exchange rates, partially offset by lower other administrative costs.
The effective tax rate was 20.0 percent compared to 5.9 percent for the same period last year, primarily due to a prior period one-time, non-cash deferred tax benefit provided by U.S. tax regulations related to foreign currency gains and losses.
Net income was $0.5 billion, down 35 percent, and Diluted earnings per share was $0.35, a decrease of 35 percent.

February 28, 2026 Balance Sheet Review

Inventories for NIKE, Inc. were $7.5 billion, down 1 percent, primarily reflecting a decrease in units and product mix shifts, partially offset by increased product costs, primarily due to higher tariffs in North America.
Cash and equivalents and short-term investments were $8.1 billion, down approximately $2.3 billion, as cash generated by operations was more than offset by cash dividends, bond repayment, capital expenditures and share repurchases.

Shareholder Returns

NIKE has a strong track record of returns to shareholders, including 24 consecutive years of increasing dividend payouts. In the third quarter, the Company returned approximately $609 million to shareholders through dividends, up 3 percent from the prior year.

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on March 31, 2026, to review fiscal third quarter results. The conference call will be broadcast live via the Internet and can be accessed at https://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through approximately 9:00 p.m. PT, April 23, 2026.

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at https://investors.nike.com. Individuals can also visit https://news.nike.com and follow @NIKE.

Forward-Looking Statements

This press release contains forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.

* Non-GAAP financial measure. See additional information in the accompanying Divisional Revenues table.

(Tables Follow)

	THREE MONTHS ENDED		%	NINE MONTHS ENDED		%
NIKE, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In millions, except per share data)	2/28/2026	2/28/2025	Change	2/28/2026	2/28/2025	Change
Revenues	$11,279	$11,269	0%	$35,426	$35,212	1%
Cost of sales	6,749	6,594	2%	20,908	19,891	5%
Gross profit	4,530	4,675	-3%	14,518	15,321	-5%
Gross margin	40.2%	41.5%		41.0%	43.5%
Demand creation expense	1,090	1,088	0%	3,551	3,436	3%
Operating overhead expense	2,887	2,799	3%	8,481	8,504	0%
Total selling and administrative expense	3,977	3,887	2%	12,032	11,940	1%
% of revenues	35.3%	34.5%		34.0%	33.9%
Interest (income) expense, net	(15)	(18)	-	(42)	(85)	-
Other (income) expense, net	(82)	(38)	-	(43)	(101)	-
Income before income taxes	650	844	-23%	2,571	3,567	-28%
Income tax expense	130	50	160%	532	559	-5%
Effective tax rate	20.0%	5.9%		20.7%	15.7%
NET INCOME	$520	$794	-35%	$2,039	$3,008	-32%
Earnings per common share:
Basic	$0.35	$0.54	-35%	$1.38	$2.02	-32%
Diluted	$0.35	$0.54	-35%	$1.38	$2.02	-32%
Weighted average common shares outstanding:
Basic	1,480.5	1,478.1		1,478.9	1,487.6
Diluted	1,481.6	1,480.6		1,480.4	1,491.0
Dividends declared per common share	$0.410	$0.400		$1.220	$1.170

	February 28,		February 28,		% Change
NIKE, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in millions)		2026		2025
ASSETS
Current assets:
Cash and equivalents	$6,660		$8,601		-23%
Short-term investments	1,397		1,792		-22%
Accounts receivable, net	5,369		4,491		20%
Inventories	7,487		7,539		-1%
Prepaid expenses and other current assets	2,271		2,186		4%
Total current assets	23,184		24,609		-6%
Property, plant and equipment, net	4,766		4,717		1%
Operating lease right-of-use assets, net	2,886		2,614		10%
Identifiable intangible assets, net	259		259		0%
Goodwill	240		239		0%
Deferred income taxes and other assets	5,729		5,355		7%
TOTAL ASSETS	$37,064		$37,793		-2%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$999		$1,000		0%
Notes payable	-		4		-100%
Accounts payable	2,888		3,106		-7%
Current portion of operating lease liabilities	493		474		4%
Accrued liabilities	6,183		5,905		5%
Income taxes payable	275		734		-63%
Total current liabilities	10,838		11,223		-3%
Long-term debt	7,030		7,956		-12%
Operating lease liabilities	2,656		2,477		7%
Deferred income taxes and other liabilities	2,450		2,130		15%
Redeemable preferred stock	-		-		-
Shareholders’ equity	14,090		14,007		1%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$37,064		$37,793		-2%

				% Change Excluding Currency Changes				% Change Excluding Currency Changes
	THREE MONTHS ENDED		%	NINE MONTHS ENDED		%
NIKE, Inc.
DIVISIONAL REVENUES
(Unaudited)
(Dollars in millions)	2/28/2026	2/28/2025	Change	2/28/2026	2/28/2025	Change
North America
Footwear	$3,326	$3,132	6%	6%	$10,087	$9,580	5%	5%
Apparel	1,480	1,510	-2%	-2%	4,765	4,534	5%	5%
Equipment	220	222	-1%	-1%	827	755	10%	10%
Total	5,026	4,864	3%	3%	15,679	14,869	5%	5%
Europe, Middle East & Africa
Footwear	1,789	1,742	3%	-7%	5,822	5,676	3%	-3%
Apparel	926	913	1%	-8%	3,228	3,042	6%	0%
Equipment	159	156	2%	-8%	547	539	1%	-5%
Total	2,874	2,811	2%	-7%	9,597	9,257	4%	-2%
Greater China
Footwear	1,187	1,282	-7%	-10%	3,250	3,731	-13%	-14%
Apparel	397	412	-4%	-7%	1,201	1,244	-3%	-5%
Equipment	31	39	-21%	-22%	99	135	-27%	-27%
Total	1,615	1,733	-7%	-10%	4,550	5,110	-11%	-12%
Asia Pacific & Latin America
Footwear	1,051	1,052	0%	-3%	3,263	3,338	-2%	-3%
Apparel	381	358	6%	4%	1,209	1,143	6%	5%
Equipment	58	60	-3%	-7%	175	195	-10%	-11%
Total	1,490	1,470	1%	-2%	4,647	4,676	-1%	-2%
Global Brand Divisions	7	12	-42%	-37%	25	39	-36%	-34%
TOTAL NIKE BRAND	11,012	10,890	1%	-2%	34,498	33,951	2%	0%
Converse	264	405	-35%	-37%	930	1,335	-30%	-32%
Corporate	3	(26)	-	-	(2)	(74)	-	-
TOTAL NIKE, INC. REVENUES	$11,279	$11,269	0%	-3%	$35,426	$35,212	1%	-1%
TOTAL NIKE BRAND
Footwear	$7,353	$7,208	2%	-1%	$22,422	$22,325	0%	-1%
Apparel	3,184	3,193	0%	-4%	10,403	9,963	4%	2%
Equipment	468	477	-2%	-6%	1,648	1,624	1%	-1%
Global Brand Divisions	7	12	-42%	-37%	25	39	-36%	-34%
TOTAL NIKE BRAND REVENUES	$11,012	$10,890	1%	-2%	$34,498	$33,951	2%	0%
The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.
Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.
Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program.

	THREE MONTHS ENDED		%	NINE MONTHS ENDED		%
NIKE, Inc.
EARNINGS BEFORE INTEREST AND TAXES ("EBIT")
(Unaudited)
(Dollars in millions)	2/28/2026	2/28/2025	Change	2/28/2026	2/28/2025	Change
North America	$981	$1,103	-11%	$3,376	$3,690	-9%
Europe, Middle East & Africa	515	480	7%	1,983	2,103	-6%
Greater China	467	421	11%	1,035	1,298	-20%
Asia Pacific & Latin America	332	346	-4%	1,071	1,208	-11%
Global Brand Divisions	(1,209)	(1,093)	-11%	(3,473)	(3,453)	-1%
TOTAL NIKE BRAND EBIT	1,086	1,257	-14%	3,992	4,846	-18%
Converse	(40)	39	-203%	(5)	213	-102%
Corporate	(411)	(470)	13%	(1,458)	(1,577)	8%
TOTAL NIKE, INC. EBIT	635	826	-23%	2,529	3,482	-27%
Interest (income) expense, net	(15)	(18)	-	(42)	(85)	-
Income tax expense	130	50	160%	532	559	-5%
NET INCOME	$520	$794	-35%	$2,039	$3,008	-32%
Total NIKE, Inc. Revenues	$11,279	$11,269	0%	$35,426	$35,212	1%
Net income margin	4.6%	7.0%		5.8%	8.5%
EBIT margin	5.6%	7.3%		7.1%	9.9%
Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures. EBIT is calculated as Net income before Interest (income) expense, net and Income tax expense. EBIT margin is calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. Management uses these non-GAAP financial measures when evaluating the Company's performance, including segment performance, when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends.
Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.
Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses.

Contacts
Paul Trussell · investor.relations@nike.com
Sandra Carreon-John · media.relations@nike.com