Companies /Consumer Cyclical
Nike Inc - Class B
NYSE: NKE Footwear & Accessories
$34.29
▼ $0.32 (−0.93%) today
Markets open · 3:51pm ET

Nike (NKE) Q3 2025 Earnings

Reported Mar 20, 2025, 4:16pm ET · SEC source
$0.54
Beat +94.88%
EPS · est. $0.28 GAAP

Includes a one-time, non-cash deferred tax benefit from recently finalized US tax regulations related to foreign currency gains and losses, reducing the effective tax rate to 5.9% from 16.5% in the prior year. No material restructuring charges in Q3 FY2025, whereas Q3 FY2024 included $340 million in restructuring charges ($0.26 per share pre-tax impact).

$11.3B
Beat +2.13%
Revenue · est. $11.0B
−10.5%
Trailing market
NKE vs S&P since report
8 quarters
Consecutive EPS beats

How Did NKE Stock React to Q3 2025 Earnings?

% change · around the report
−12%−8%−4%0Mar 20Mar 21report 4:16pm ETearnings−0.2%−8.4%
−12%−8%−4%0Mar 20Mar 21earnings−0.2%−8.4%
NKE −8.4%S&P 500 −0.2%
−12%−8%−4%0Mar 20Mar 21report 4:16pm ETearnings+0.4%−8.4%
−12%−8%−4%0Mar 20Mar 21earnings+0.4%−8.4%
NKE −8.4%NASDAQ +0.4%
−15%−10%−5%0Mar 19Mar 28report 4:16pm ETearnings−2.1%−13.8%
−15%−10%−5%0Mar 19Mar 28earnings−2.1%−13.8%
NKE −13.8%S&P 500 −2.1%
−15%−10%−5%0Mar 19Mar 28report 4:16pm ETearnings−2.6%−13.8%
−15%−10%−5%0Mar 19Mar 28earnings−2.6%−13.8%
NKE −13.8%NASDAQ −2.6%
−5.46%
Day of report
−0.81%
Next session
−6.84%
One week
−15.53%
30 days

S&P 500 over the same 30 days: −5.06%.

Did NKE Beat Earnings? Q3 2025 Results

Yes. Nike reported Q3 2025 earnings of $0.54 a share on Mar 20, 2025, beating the $0.28 consensus estimate by 94.9%. Revenue was $11.3B against a $11.0B estimate.

Nike delivered a fiscal third-quarter earnings beat that far exceeded Wall Street's expectations, though the headline numbers still reflected a company working through a meaningful revenue downturn. GAAP diluted EPS of $0.54 topped the $0.28 consensus estimate by nearly 95%, aided in significant part by a one-time, non-cash deferred tax benefit stemming from recently finalized U.S. tax regulations related to foreign currency gains and losses, which compressed the effective tax rate to 5.9% from 16.5% a year earlier. Revenue of $11.27 billion, down 9% year-over-year on a reported basis, still edged past the $11.03 billion consensus by 2.13%, even as NIKE Direct slid 12%, digital fell 15%, and Greater China revenue dropped 17% to $1.73 billion. Gross margin contracted 330 basis points to 41.5%, reflecting deeper discounts and higher product costs. Analysts have trimmed price targets in the wake of the report, underscoring skepticism about the pace of CEO Elliott Hill's "Win Now" turnaround, though CFO Matthew Friend reiterated that the second-half outlook remains consistent with prior guidance.

Key Takeaways
  • Revenue declines across all geographies driven by lower NIKE Direct and wholesale volumes
  • Gross margin contracted 330 basis points due to higher discounts, higher inventory obsolescence reserves, higher product costs, and channel mix changes
  • NIKE Brand Digital revenues down 15%, a significant drag on NIKE Direct
  • Lower effective tax rate of 5.9% (vs. 16.5% prior year) due to one-time non-cash deferred tax benefit from finalized US tax regulations
  • Operating overhead expense declined 13% partly due to absence of prior-year restructuring charges of $340 million
  • Demand creation expense increased 8% due to higher brand marketing spend

“The progress we made against the 'Win Now' strategic priorities we committed to 90 days ago reinforces my confidence that we are on the right path.”

Nike CEO, on the earnings call

What Was Nike's Outlook in Q3 2025?

CFO Matthew Friend stated that the outlook for the second half of fiscal 2025 driven by 'Win Now' actions remains consistent with what was communicated the prior quarter. He acknowledged that the operating environment is dynamic but emphasized that what matters most for NIKE is serving athletes with new product innovation and re-igniting brand momentum through sport.

NKE YoY Financials

Revenue$11.3B
Gross Profit$4.7B
Operating Income$788.0M
Net Income$794.0M

NKE Revenue by Segment

NIKE Brand$10.9B−9.0%
Footwear$7.2B−12.0%
Wholesale$6.2B−7.0%
NIKE Direct$4.7B−12.0%
Apparel$3.2B−3.0%
Equipment$477.0M−2.0%
Converse$405.0M−18.0%

NKE Revenue by Geography

North America$4.9B−4.0%
EMEA$2.8B−10.0%
Asia Pacific$1.5B−11.0%
Greater China$1.7B−17.0%

Figures from SEC filings and company reports. Not investment advice.