Nike Inc - Class B
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.04%.
Did NKE Beat Earnings? Q1 2026 Results
Nike delivered a stronger-than-expected profit picture in fiscal Q1 2026, posting diluted EPS of $0.49 against a consensus estimate of $0.27, an 81.48% beat, even as the underlying business continued to navigate meaningful headwinds. Revenue edged up 1.1% year over year to $11.72 billion, though on a currency-neutral basis the top line actually contracted, underscoring the currency tailwinds masking softer organic demand. The quarter's defining pressure point was gross margin, which compressed 320 basis points to 42.2%, squeezed by heavier discounting, unfavorable channel mix, and rising tariff costs in North America; net income fell 31% to $727 million as a result. Bright spots included a 4% revenue gain in North America to $5.02 billion and a 7% jump in wholesale to $6.80 billion, suggesting improved sell-through with retail partners, while institutional investors have taken note, with some adding new positions amid the turnaround effort. CFO Matthew Friend cautioned that recovery will not be linear, with tariffs and channel normalization remaining active variables heading into subsequent quarters.
- Wholesale revenue growth of 7% driven by improved partner sell-through
- North America revenue grew 4% as a priority Win Now market
- Apparel revenues up 9% and Equipment up 4% across NIKE Brand
- Gross margin compressed 320 basis points to 42.2% due to higher discounts, channel mix, and North America tariffs
- NIKE Brand Digital declined 12%, dragging NIKE Direct down 4%
- Greater China revenues declined 9% on a reported basis
- Converse revenues fell 27% with declines across all territories
“This quarter NIKE drove progress through our Win Now actions in our priority areas of North America, Wholesale, and Running. While we're getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment. I'm confident that we have the right focus in Win Now and that our new alignment in the Sport Offense will be the key to maximizing NIKE, Inc.'s complete portfolio over the long-term.”
Nike CEO, on the earnings call
Forward Guidance & Outlook
CFO Matthew Friend noted that progress will not be linear as different dimensions of NIKE's business recover on different timelines. The company is navigating several external headwinds, including higher tariffs in North America impacting both gross margin and inventory costs, while teams are focused on executing against controllable factors. CEO Elliott Hill expressed confidence in the Win Now strategy and the new Sport Offense organizational alignment as key to long-term portfolio maximization.
NKE YoY Financials
NKE Revenue by Segment
NKE Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.