Executive Summary
Nike delivered a Q3 FY2025 (QQ3 2025) revenue of $11.269 billion, a YoY decline of approximately 9.3% and QoQ decline of about 8.8%. Gross profit was $4.675 billion with a gross margin of 41.5%, while operating income stood at $788 million and net income at $794 million (EPS $0.54). The quarter reflected continued topline softness across regions and products, but demonstrated durable profitability and strong free cash flow generation. Operating cash flow reached $1.792 billion and free cash flow was $1.711 billion, underscoring Nike’s ability to translate weaker top-line conditions into tangible liquidity and capital returns. Balance sheet remained robust with cash and cash equivalents of $8.601 billion and total liquidity including short-term investments of $10.393 billion, alongside a net debt position of roughly $3.31 billion. The company continued to allocate capital to buybacks ($506 million), and dividends ($594 million), while maintaining a conservative debt posture. Inventory days on hand remained elevated (~102.9 days), signaling typical seasonality and potential markdown risk, which may influence near-term margin trajectory. Market-leading brand equity, a disciplined cost structure, and a strong DTC/add-on digital channel strategy remain key levers for the ongoing path to margin expansion and revenue stabilization. Investors should monitor DTC growth, inventory management, currency effects, and ongoing price realization versus wholesale channel dynamics as drivers of the next phase of profitability and cash-flow expansion.
Key Performance Indicators
QoQ: -13.25% | YoY:-15.95%
QoQ: -43.06% | YoY:-41.02%
QoQ: -31.73% | YoY:-32.25%
QoQ: -30.77% | YoY:-29.87%
Key Insights
Revenue: $11.269B; YoY change: -9.33%; QoQ change: -8.78%. Gross Profit: $4.675B; YoY change: -15.95%; QoQ change: -13.25%. Gross Margin: 41.5%. Operating Income: $0.788B; YoY change: -41.02%; QoQ change: -43.06%. Net Income: $0.794B; YoY change: -32.25%; QoQ change: -31.73%. EPS: $0.54; YoY change: -29.87%; QoQ change: -30.77%. Operating cash flow: $1.792B; Free cash flow: $1.711B. Capital expenditures: $81M; Dividends paid: $594M; Share repurchases: $506M. Cash at end of period: $8.601B; Total...
Financial Highlights
Revenue: $11.269B; YoY change: -9.33%; QoQ change: -8.78%. Gross Profit: $4.675B; YoY change: -15.95%; QoQ change: -13.25%. Gross Margin: 41.5%. Operating Income: $0.788B; YoY change: -41.02%; QoQ change: -43.06%. Net Income: $0.794B; YoY change: -32.25%; QoQ change: -31.73%. EPS: $0.54; YoY change: -29.87%; QoQ change: -30.77%. Operating cash flow: $1.792B; Free cash flow: $1.711B. Capital expenditures: $81M; Dividends paid: $594M; Share repurchases: $506M. Cash at end of period: $8.601B; Total debt: $11.911B; Net debt: $3.31B. Current ratio: 2.19; Quick ratio: 1.52; Inventory days: 102.9; DSO: 35.9; DIO: 102.9; DPO: 42.4. P/E: ~34.7; P/B: ~7.86; P/S: ~9.77; Dividend yield: ~0.54%. Free cash flow yield near 15.9% of revenue per ratio, and capital expenditure coverage remains strong. Payout ratio: 74.8%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.27B |
-9.33% |
-8.78% |
| Gross Profit |
4.68B |
-15.95% |
-13.25% |
| Operating Income |
788.00M |
-41.02% |
-43.06% |
| Net Income |
794.00M |
-32.25% |
-31.73% |
| EPS |
0.54 |
-29.87% |
-30.77% |
Key Financial Ratios
operatingProfitMargin
6.99%
operatingCashFlowPerShare
$0.17
freeCashFlowPerShare
$0.16
dividendPayoutRatio
74.8%
Management Commentary
No earnings call transcript data provided in the input. Consequently, thematic highlights and management stance from the call could not be retrieved. If transcript is supplied, a thematic synthesis across strategy, operations, and market conditions will be added here.
Forward Guidance
No formal forward guidance was included in the provided data. In the absence of explicit guidance, the assessment relies on the quarter's performance and Nike’s strategic posture. Key factors likely shaping the forward trajectory include: (1) direct-to-consumer and digital channel acceleration supporting higher margin mix, (2) product and price discipline to offset wholesale pressure and currency volatility, (3) inventory management to normalize days of inventory and reduce markdown risk, and (4) sustained demand in core categories (athletic footwear and apparel) with brand equity intact. Management commentary (when available) would clarify expected trajectory for FY25/FY26 revenue, gross margin expansion, and capex/dilution plans. Investors should monitor DTC penetration, regional demand normalization (especially in faster-growth Asia-Pacific and EMEA), currency headwinds/hedges, and capital allocation cadence (buybacks vs. growth investments).