"we're in the middle innings of our comeback. The win now actions and the sport offense is working and it will lead us back to profitable, sustainable growth."
— Elliott Hill
03Detailed Report
NKE
Company NKE
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 4, 2026
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Executive Summary
Nike delivered a modest top-line performance in Q2 FY2026 (QQ2 2026, quarter ended 2025-11-30) with revenue of $12.427B, up 1% year over year on a reported basis and flat currency-adjusted, as the company continues to execute its WinNow actions while building momentum from the new sport offense. Management framed the quarter as “slightly better than we had anticipated” and highlighted three thematic pillars: (1) the sport offense is driving a more diversified product portfolio and accelerating athlete-centered innovation; (2) North America is leading a healthier, repeatable top-line base and is a proof point for the rest of the geographies; (3) China remains the most challenging geography with a longer reset, but one that Nike expects to return to growth with a refreshed approach. Profitability remains under pressure from tariff headwinds and marketplace clean-up, but the company reaffirmed a path to double-digit EBIT margins through a multi-brand portfolio and ongoing efficiency initiatives.
Key Performance Indicators
Revenue
Increasing
12.43B
QoQ: 6.03% | YoY: 7.23%
Gross Profit
Decreasing
5.05B
40.60% margin
QoQ: 2.06% | YoY: -4.03%
Operating Income
Decreasing
1.01B
QoQ: 8.52% | YoY: -16.79%
Net Income
Decreasing
792.00M
QoQ: 8.94% | YoY: -24.64%
EPS
Decreasing
0.54
QoQ: 10.20% | YoY: -22.86%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $12.427B in Q2 FY2026, up 1% YoY (currency-neutral change not specified in press materials; management noted modest top-line growth).
- Gross margin: 40.6% (Q2 GAAP), down ~~3.0 percentage points YoY, largely driven by higher tariffs and inventory obsolescence in Greater China.
- Operating income: $1.006B, down about 16.8% YoY as margin headwinds offset top-line progress.
- Net income: $792M, down ~24.6% YoY; EPS: $0.54 vs prior-year level of roughly $0.70.
- Balance sheet: cash and equivalents $6.974B; total debt $11.282B; net debt $4.309B; total stockholders’ equity $14.085B.
- Free cash flow: $386M; Operating cash flow: $579M; Capex: $193M.
- Geography highlights: North America revenue +9% with Wholesale +24%, NIKE Direct down ~10%, Digital down ~16%; Greater China revenue down 16% with EBIT down ~49%; EMEA revenue -1%; APLA revenue -4%.
- Guidance: Q3 revenue expected to decline low single digits; gross margin down 175–225 bps, with about 315 bps tariff impact embedded; SG&A up low single digits.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12.43B
7.23%
6.03%
Gross Profit
5.05B
-4.03%
2.06%
Operating Income
1.01B
-16.79%
8.52%
Net Income
792.00M
-24.64%
8.94%
EPS
0.54
-22.86%
10.20%
Key Financial Ratios
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