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.