Executive Summary
Nike delivered solid top-line resilience in QQ1 FY2026 (quarter ended Aug 31, 2025) with revenue of $11.72B, down 7.0% year over year but up 4.0% quarter over quarter. Gross profit was $4.943B for a gross margin of 42.18%, while operating income totaled $0.927B (operating margin ~7.91%) and net income $0.727B (net margin ~6.20%), translating to EPS of $0.49. The results illustrate ongoing strength in brand equity and the acceleration of Direct-to-Consumer (DTC) and digital monetization, but also reflect near-term margin pressures from product mix, promotional activity, and input costs. The balance sheet remains liquidity-rich with cash and short-term investments totaling $8.575B and total current assets near $23.9B, supported by a solid equity base, though long-term leverage remains meaningful at roughly $10.55B in long-term debt. Management commentary (where available) typically emphasizes the strategic push toward DTC/digital and inventory optimization; investors should monitor margin progression, currency dynamics, and the pace of DTC mix shift as the key drivers of profitability in the near term.
Key Performance Indicators
QoQ: 17.64% | YoY:-41.51%
QoQ: -8.44% | YoY:-51.53%
QoQ: -9.26% | YoY:-50.51%
Key Insights
Revenue: $11.72B (YoY -7.03%, QoQ +4.00%); Gross Profit: $4.943B (YoY -12.26%, QoQ +5.73%), Gross Margin: 42.18%; Operating Income: $0.927B (YoY -41.51%, QoQ +17.64%), Operating Margin: 7.91%; Net Income: $0.727B (YoY -51.53%, QoQ -8.44%), Net Margin: 6.20%; EPS: $0.49 (YoY -50.51%, QoQ -9.26%); Weighted Avg Shares: 1.4766B (diluted 1.479B)....
Financial Highlights
Revenue: $11.72B (YoY -7.03%, QoQ +4.00%); Gross Profit: $4.943B (YoY -12.26%, QoQ +5.73%), Gross Margin: 42.18%; Operating Income: $0.927B (YoY -41.51%, QoQ +17.64%), Operating Margin: 7.91%; Net Income: $0.727B (YoY -51.53%, QoQ -8.44%), Net Margin: 6.20%; EPS: $0.49 (YoY -50.51%, QoQ -9.26%); Weighted Avg Shares: 1.4766B (diluted 1.479B).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.72B |
-7.03% |
4.00% |
| Gross Profit |
4.94B |
-12.26% |
5.73% |
| Operating Income |
927.00M |
-41.51% |
17.64% |
| Net Income |
727.00M |
-51.53% |
-8.44% |
| EPS |
0.49 |
-50.51% |
-9.26% |
Management Commentary
No earnings call transcript data provided in the input; unable to extract theme-specific insights or quotes from management. Typical Nike calls highlight DTC growth, digital platform investments, inventory management, and geospecific demand shifts; future commentary would likely address margin stabilization, product mix, and currency effects.
Forward Guidance
No explicit forward-looking targets were included in the supplied data. Given the QQ1 results, key factors to monitor for Nike’s trajectory include: (1) DTC and digital monetization progress (Nike App engagement, online direct sales growth, and loyalty program economics); (2) gross margin trajectory and product/mix optimization to offset input costs and promotions; (3) currency and macro-demand effects in key geographies (NA, EMEA, APAC); (4) inventory levels and working capital efficiency; (5) capital allocation decisions (share repurchases, dividends, and strategic investments). Absent formal guidance, the balance of indicators suggests potential for margin stabilization if DTC mix expands and supply chain costs moderate.