NIKE Inc (NKE.BA) Q1 2026 Earnings Report

Nike QQ1 2026 results show a revenue base of $11.72 billion, down 7.03% year-over-year, with sequential strength of 4.00% quarter-over-quarter. The gross profit reached $4.943 billion for a gross margin of 42.18%, but operating income declined 40.04% YoY to $0.927 billion, and net income fell 51.53% YoY to $0.727 billion, translating to an EPS of $0.49. The discrepancy between top-line resilience and bottom-line erosion highlights ongoing cost pressures and a shift in profitability dynamics despite a relatively robust liquidity position. Management commentary is not available in the provided transcript dataset, limiting qualitative color on the drivers behind mix, geography, or category performance. The balance sheet remains solid with substantial liquidity and moderate leverage, supporting ongoing investments in DTC and digital capabilities, though inventory levels and broader macro headwinds warrant close monitoring. Key structural strengths anchor Nike’s long-term outlook: a globally recognized brand, a diversified multi-brand portfolio (Nike and Converse), and a scalable direct-to-consumer and digital platform ecosystem. Near-term considerations include sustaining gross margin discipline, optimizing inventory, and extracting incremental margin from higher-value categories and channels. The investment thesis rests on the successful execution of DTC growth, geographic expansion, and continued product innovation against a competitive backdrop and macro uncertainty.