Nike (NKE) Q3 2026 earnings summary

Executive summary

• Progress continues on strategic turnaround, with deliberate actions to improve business health and quality, though the process is taking longer than anticipated.

• Third quarter revenues were $11.3 billion, flat year-over-year on a reported basis and down 3% on a currency-neutral basis.

• Net income was $520 million, down 35% compared to the same quarter last year.

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

• Running and football segments are leading the comeback, with running up over 20% for the quarter.

Financial highlights

• Wholesale revenues rose 5% to $6.5 billion, while Nike Direct revenues fell 4% to $4.5 billion.

• Converse revenues dropped 35% to $264 million, with declines across all territories.

• SG&A increased 2% year-over-year, impacted by $230 million in employee severance charges.

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

• Cash and equivalents plus short-term investments totaled $8.1 billion, down $2.3 billion from the prior 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.

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

• SG&A expected to be flat to down slightly in Q4; full-year tax rate in the low-20% range.

• Management expects "Win Now" actions to continue impacting results through the rest of the calendar year, with confidence in positioning for long-term profitable growth.