NIKE Inc (NKE) Q1 2026 Earnings Report

Nike’s QQ1 2026 results reflect a rebound in sequential performance but an ongoing year-over-year revenue decline. Revenue stood at $11.72 billion, down 7.03% year over year (YoY) while rising 4.00% quarter over quarter (QoQ). Gross profit reached $4.943 billion with a gross margin of 42.18%, yet both gross profit and margin declined versus the year-ago period (-12.26% YoY; +5.73% QoQ). Operating income was $0.927 billion, corresponding to an operating margin of 7.9%, down 41.51% YoY but up 17.64% QoQ. Net income totaled $0.727 billion (net margin 6.20%, YoY -51.53%; QoQ -8.44%), and diluted EPS was $0.49 (YoY -50.51%; QoQ -9.26%). The quarter featured meaningful working capital dynamics, including a $610 million increase in inventory and a $215 million reduction in accounts receivable, contributing to modest free cash flow generation of $15 million despite $222 million of cash from operating activities. Nike finished the period with $7.024 billion in cash and cash equivalents and $11.061 billion in total debt, yielding a net debt position of approximately $4.04 billion and a solid liquidity buffer. Dividends paid and share repurchases remained material, with $591 million in dividends and $126 million in net share repurchases during the quarter. The results underscore Nike’s durable brand equity and ongoing prioritization of direct-to-consumer (DTC) and digital channel investments, even as macro headwinds and input-cost pressures weigh on near-term profitability.