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Compare the businesses first and the share prices second. Nike’s fiscal 2026 revenue was $46.398 billion, while adidas reported €24.811 billion in net sales for 2025; those figures use different currencies and fiscal periods, so they are not a like-for-like measure of investment value. A useful comparison adjusts for reporting dates, currency, growth quality, margins, cash and balance-sheet needs, and only then considers valuation.
Start with comparable periods and currencies
Nike’s fiscal year ended May 31, 2026; adidas’s figures here are for calendar 2025. Nike reports in U.S. dollars and adidas in euros. Keep those distinctions visible when comparing absolute amounts, and do not convert one company’s figure using an unrelated exchange-rate date. For growth, compare reported change with currency-neutral change when both are disclosed.
Nike reported fiscal 2026 revenue of $46.398 billion, flat year over year on a reported basis and down 2% currency-neutral. adidas reported 2025 net sales of €24.811 billion. Those totals describe scale, not which stock is more attractive: investment value also depends on profitability, cash generation, capital requirements, risk and the price investors pay. See Nike’s fiscal 2026 Form 10-K and adidas’s 2025 Annual Report.
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Compare growth quality, not just sales growth
Ask whether growth is broad-based across regions and channels or concentrated in a particular market or route to customer. Nike reports four NIKE Brand geographic segments—North America, EMEA, Greater China and APLA—and separates NIKE Direct from wholesale. NIKE Direct includes owned retail and digital sales; wholesale includes independent distributors, licensees and sales representatives. These channels can have different economics and inventory risks.
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adidas said its brand revenues grew 13% currency-neutral in 2025, the second consecutive year of that growth. Its 2026 outlook calls for high-single-digit currency-neutral sales growth. That is management guidance, not a realized result, and the company cautions that actual outcomes can differ if assumptions or risks change. The outlook is described in the adidas 2025 Annual Report outlook.
When reading either company’s growth, separate what the filing reports from management’s explanation of demand or execution. Nike identifies changing consumer preferences and competition as risks to demand; adidas cites macroeconomic uncertainty, geopolitical tensions, tariffs and commodity-price volatility among potential headwinds.
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Read margins alongside their drivers
For fiscal 2026, Nike reported a 42.9% gross margin and $3.108 billion in net income. adidas reported a 51.6% gross margin and €2.056 billion in operating profit for 2025. These are different fiscal periods and different earnings measures: net income is not directly comparable to operating profit. A fuller comparison uses gross margin, operating profit or margin, and net income for aligned periods wherever possible.
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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteQuarterly results can be distorted by temporary factors. Nike’s fiscal fourth-quarter revenue was $11.0 billion, down 1% reported and 4% currency-neutral. Its fourth-quarter gross margin was 49.2%, but Nike said it included an approximately 900-basis-point benefit from expected recovery of IEEPA tariffs. Do not treat that quarter’s margin as a recurring operating level or annualize it without accounting for the stated effect. Nike’s June 30, 2026 earnings release provides the quarterly context.
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In general, look for filing-identified explanations—such as markdowns, freight, product mix, tariffs, marketing or restructuring—rather than assuming why a margin changed. adidas’s 2025 annual report describes its gross-margin and operating-profit performance; assess those drivers in the same period rather than comparing an annual figure from one company with a single quarter from another.
Check inventory and working capital
Inventory affects both cash tied up in operations and the risk of discounting products that do not sell at planned prices. Compare inventory levels and their growth against sales growth, then check whether the companies use comparable definitions and reporting dates. A rising inventory balance is not automatically a problem, but it deserves context alongside demand, product availability and markdowns.
adidas’s 2026 outlook targets average operating working capital of 22%–23% of sales. This is a forward-looking target, not a reported 2025 result. If comparing it with Nike, first confirm that the measure is defined consistently; similarly named working-capital measures may not include the same items.
Compare cash, financial flexibility and capital returns
Sales and accounting earnings do not show how much cash a company generates or how much it needs to sustain operations. Compare operating cash flow and free cash flow using a consistent definition, alongside debt, liquidity and capital needs. Then review dividends and share repurchases in context. An authorization or planned return of capital does not prove a stock is undervalued, and repurchases can be funded or timed differently.
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The figures cited above do not provide a synchronized cash-flow and balance-sheet comparison. Use the companies’ filings for the same periods and verify that any free-cash-flow calculation treats capital expenditure and other adjustments consistently.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Assess execution and risks from company disclosures
Track evidence of product demand, channel performance and geographic results in each company’s filings, while labeling explanations as management’s account rather than independent confirmation. Nike warns that failing to respond in a timely and adequate manner to changes in consumer preferences and competition could materially affect sales and profitability. adidas’s outlook also flags external risks, including tariffs and volatile commodity prices. These risks can affect future results even when recent reported growth is strong.
Compare valuation only after the operating review
To assess whether one stock is cheaper, compare market capitalization and enterprise value with earnings, free cash flow and sales using the same market date and financial period. Use consistent definitions and note whether earnings are trailing, forecast or adjusted. A lower multiple alone does not establish better value: it may reflect weaker expected growth, greater risk or different capital needs.
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The company figures discussed here do not establish synchronized share prices or valuation multiples. They therefore cannot show which stock is cheaper today or support a buy, sell or “better investment” verdict. Your time horizon and tolerance for business and share-price risk also matter.
Quick Recap
A practical comparison checklist
- Align the periods: Record each fiscal year-end and label any mismatch.
- Normalize growth: Compare reported growth and currency-neutral growth where available; inspect regions and channels.
- Compare profitability: Use gross and operating margins plus earnings measures, and isolate disclosed temporary effects.
- Review working capital: Examine inventory relative to sales and check that working-capital definitions match.
- Review cash and financial flexibility: Compare operating cash flow, consistently calculated free cash flow, debt, liquidity and capital returns.
- Consider valuation last: Use multiples calculated from a common market date and comparable financial periods.
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