Nike (NKE) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue was $11.213B, down 4% reported and 5% currency-neutral; gross margin rose 60 bps to 42.8%.

• Net income fell 2% to $712M and diluted EPS was $0.48; North America growth partly offset weakness in Greater China and Converse.

• Pace launched as a multiyear operating-model transformation targeting productivity, organizational effectiveness and $2.5B in cumulative savings through FY2031.

Financial highlights

• Revenue was $11.213B (-4% YoY); gross profit was $4.798B (-3%), operating expenses were $3.910B (-3%), and net income was $712M (-2%).

• Diluted EPS was $0.48 vs. $0.49; demand creation expense rose 5% to $1.252B, while operating overhead fell 6% to $2.658B.

• Operating cash flow was $135M vs. $222M; cash and equivalents ended at $6.903B, with cash plus short-term investments totaling $8.4B.

• Returned $610M to shareholders through dividends, up 3% YoY.

• Inventory was $7.846B, up 5% from May 31, 2026, primarily due to product-mix shifts; substantially all inventory was finished goods.

Outlook and guidance

• FY2027 revenue is expected to decline high single digits; EBIT is projected to fall at a greater rate than revenue.

• Adjusted FY2027 EPS guidance is $1.15–$1.35, excluding $0.15 of Pace-related restructuring expenses.

• Pace targets $2.5B in cumulative savings through FY2031; ~$1.0B in pretax charges are expected, in addition to ~$0.3B of FY2026 severance costs, with ~$0.3B expected in FY2027.

• Marketplace actions in Sportswear and Jordan extend beyond FY2027; Converse reset actions continue through FY2027, and Greater China actions extend beyond FY2027.