Nike (NKE) Q3 2026 earnings summary

Executive summary

• Third quarter revenues were $11.3 billion, flat year-over-year on a reported basis and down 3% currency-neutral, with North America growth offset by declines in EMEA, Greater China, and Converse.

• Net income for the quarter was $520 million, down 35% from the prior year, with diluted EPS of $0.35.

• Gross margin declined 130 basis points to 40.2%, mainly due to higher tariffs in North America.

• Strategic turnaround actions continue, including inventory cleanup and product innovation, but the process is taking longer than anticipated.

• Approximately $609 million was returned to shareholders through dividends in the quarter.

Financial highlights

• Third quarter revenues: $11.3 billion (flat year-over-year); nine-month revenues: $35.4 billion (up 1%).

• Net income for nine months: $2.04 billion, down from $3.01 billion year-over-year.

• Gross margin for nine months: 41.0%, down 250 basis points from prior year.

• Selling and administrative expense increased 2% to $4.0 billion, impacted by $230 million in employee severance charges.

• Inventories were $7.5 billion, down 1% year-over-year.

Outlook and guidance

• Revenues expected to be down low single digits over the next nine months, with North America gains offset by Greater China declines.

• Q4 revenues projected down 2%-4%, with Greater China down ~20% and modest growth in North America.

• Strategic resets in Greater China and Converse, and cost realignment, are expected to impact results through fiscal 2027.

• Gross margin expansion anticipated to begin in Q2 fiscal 2027 as tariff impacts subside.

• Full-year and long-term guidance to be provided at Investor Day in the fall.