Nike’s latest reported quarter showed revenue down 4% year over year to $11.2 billion, while net income fell 2% to $712 million. The company declared a quarterly dividend of $0.41 per share in August 2026. Those figures describe the business and a past dividend decision; they do not, by themselves, show whether NKE is a good investment at its current share price.
What did Nike report in its latest earnings?
Nike’s fiscal 2027 first quarter ended August 31, 2026, and the company reported results on October 1. Revenue was $11.2 billion, compared with $11.7 billion in the year-earlier quarter: down 4% as reported and 5% on a currency-neutral basis. Net income was $712 million, down 2%, and diluted earnings per share (EPS) were $0.48. These are reported results, not a forecast. NIKE, Inc.’s Q1 FY2027 release provides the company’s detailed figures.
Sales varied by channel and region
NIKE Brand revenue was $11.0 billion, down 4% both as reported and currency-neutral. Wholesale revenue declined 1%, while NIKE Direct declined 8% as reported and 9% currency-neutral. Digital sales fell 13%, and Nike-owned store sales fell 5%. Converse revenue was $263 million, down 28%.
Geography also mattered: North America revenue rose 2% to $5.127 billion, while Greater China revenue fell 22% as reported and 26% currency-neutral to $1.18 billion. EMEA declined 5%, and Asia Pacific & Latin America declined 2% as reported. These are outcomes for one quarter; they do not establish that the same regional pattern will persist.
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Margins and expenses tell a more mixed story
Gross margin rose 60 basis points to 42.8%. Nike attributed the improvement mainly to lower warehousing and logistics costs, with favorable currency and lower product costs also helping. Higher third-party royalties and lower average selling prices associated with discounting and channel mix partly offset those benefits.
Selling and administrative expense fell 3% to $3.9 billion. Demand-creation expense increased 5% to $1.3 billion as Nike spent more on brand marketing and key sports events. A margin gain in one quarter therefore sits alongside declining sales and continued spending to support the brand.
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What is Nike’s outlook, and what is Pace?
For FY2027, Nike forecast a high-single-digit percentage decline in revenue and an effective tax rate in the mid-20% range. It also projected adjusted diluted EPS of $1.15–$1.35, excluding approximately $0.15 per share of Pace restructuring expenses. The adjusted EPS range is a non-GAAP forecast—not reported GAAP EPS or an achieved result. Forecasts can change as conditions evolve.
How to read the Pace savings estimate
Nike says its Pace transformation is expected to produce approximately $2.5 billion in cumulative savings through FY2031, with approximately $1.0 billion in pre-tax charges through FY2031, in addition to about $0.3 billion of FY2026 severance costs. The company cautions that these estimates depend on assumptions and that actual savings, charges and cash spending may differ materially. Savings are management estimates, not guaranteed earnings.
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- Flex grooves create a cushioned effect for your run.
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The described work includes modernizing the global supply chain, establishing an India campus for enterprise capabilities, moving to three geographies and streamlining the organization. Nike has also described repositioning NIKE Sportswear, Jordan Brand and Greater China. Investors assessing the plan can track whether the operating results improve as the changes proceed, rather than treating the announced savings target as already realized.
Full-year context and a one-time comparison factor
For FY2026, Nike reported revenue of $46.4 billion, flat as reported and down 2% currency-neutral. Net income was $3.1 billion and diluted EPS was $2.10, each down 3% year over year. FY2026 fourth-quarter EPS of $0.72 included a $0.52 benefit associated with expected recovery of IEEPA tariffs. That item makes the quarter’s EPS less representative of recurring operating performance; it should not be mistaken for ordinary earnings growth. See Nike’s FY2026 Form 10-K for annual results and risk disclosures.
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- Mesh on upper adds breathability.
- Foam midsole delivers a soft ride.
- Flex grooves create a cushioned effect for your run.
- Waffle outsole is a made of a durable, flexible material that helps keep you on the move.
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How much is Nike’s dividend?
Nike declared a quarterly dividend of $0.41 per share on August 6, 2026, payable October 1, 2026, to shareholders of record on September 1. This is a dated declaration, not a guarantee of future payments. Nike’s dividend announcement gives those dates. A dividend yield cannot be stated meaningfully without a share price and its date; yield changes as the stock price changes. Check for a newer company declaration if relying on this figure after October 2026.
Dividend payments in the context of cash flow
For FY2026, Nike reported $2.407 billion of dividends paid, $2.868 billion of cash provided by operations and $684 million of property, plant and equipment additions. Its shareholders’ equity statement separately reported $2.430 billion of common and preferred dividends declared. Cash paid and dividends declared are different accounting measures, so they should not be treated as interchangeable.
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One year’s relationship between operating cash flow, capital spending and dividends is not a forecast of future dividend coverage. To assess the distribution over time, track operating cash flow, capital expenditures, working capital, debt obligations and dividends across multiple periods.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What are the main risks of investing in Nike?
Nike’s FY2026 Form 10-K identifies business risks that can affect sales, costs or profitability. The FY2027 first-quarter results add current operating signals, but a single quarter does not prove a lasting trend.
- Demand, inventory and product preferences: Weak discretionary spending can reduce demand, increase inventories, prompt cancellations and discounts, and pressure gross margins. Nike must also anticipate changes in sports and style preferences and develop products customers want.
- Competition and execution: The footwear and apparel markets are highly competitive. Innovation, product quality, brand connection, sourcing and retail execution matter. The latest quarter’s declines in Greater China, Converse and NIKE Direct make the company’s marketplace repositioning worth monitoring.
- Geography, currency and trade: Foreign-exchange movements, tariffs, trade rules, geopolitical conditions and tax regulation can affect costs, customer behavior, revenue and profitability. Nike said external volatility could materially affect future revenue and profitability.
- Supplier concentration: Nike relies on a concentrated group of contract manufacturers for all the footwear it sells. A disruption or change in trade terms could affect product availability, costs and sales.
- Digital systems and cybersecurity: Supply chain, inventory, retail, digital commerce and consumer engagement depend on information technology. System interruptions or cyberattacks could disrupt operations and harm customer relationships.
- Brand and reputation: Product quality, marketing, supplier conduct, public claims and social or political issues can affect brand image, including when claims are disputed.
- Transformation execution: Pace savings and charges depend on assumptions and execution. Actual results may differ materially from management’s estimates.
Is Nike stock a good investment?
The earnings, dividend and risk disclosures help describe Nike’s business, but they do not establish whether NKE is attractive at a particular price or suitable for a particular investor. That judgment also requires a valuation using a current share price, relevant expectations and an investor’s time horizon, risk tolerance and portfolio. No current share price, valuation multiple or consensus estimate is established here, so a buy-or-sell conclusion would not follow from these operating figures alone.
A useful monitoring framework is to compare future periods consistently: revenue growth by channel and geography, gross margin and its drivers, cash generation after capital expenditure, dividend funding, and evidence that restructuring is translating into operating progress. Management commentary should be weighed against reported results: CEO Elliott Hill said Nike had more work to do in NIKE Sportswear, Jordan Brand and Greater China while taking actions to strengthen those businesses.
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