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To read Nike’s latest earnings, separate what happened from what management expects next. In fiscal 2027’s first quarter, ended August 31, 2026, NIKE reported $11.213 billion in revenue, a 42.8% gross margin, $712 million in net income, and $0.48 in diluted EPS. Revenue and net income were lower than a year earlier, even as gross margin improved. Management’s fiscal-year outlook is a forecast, not a result.
Start with the period and the reported results
NIKE announced fiscal 2027 first-quarter results on October 1, 2026. The quarter ended August 31, 2026. Compare it with the same quarter a year earlier rather than relying only on the previous quarter: seasonal patterns can make quarter-to-quarter comparisons misleading. NIKE’s release reports revenue of $11.213 billion in its financial table, rounded to $11.2 billion in the headline.
| Metric | Fiscal 2027 Q1 | Fiscal 2026 Q1 | What changed |
|---|---|---|---|
| Revenue | $11.213 billion | $11.7 billion | Down 4% reported; down 5% currency-neutral |
| Gross margin | 42.8% | 42.2% | Up 60 basis points year over year |
| Net income | $712 million | Not stated in the cited releases’ summary figures | Down 2% year over year |
| Diluted EPS | $0.48 | $0.49 | Lower by $0.01 |
Figures and comparisons are from NIKE’s fiscal 2027 Q1 release and fiscal 2026 Q1 release. Read the rounded and detailed revenue amounts accordingly; they are two presentations of the current quarter, not contradictory results.
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Revenue is the top line: sales before expenses are deducted. NIKE’s $11.213 billion was down 4% on a reported basis and 5% on a currency-neutral basis, both year over year. Currency-neutral growth is a supplemental comparison that adjusts for currency effects; it is not a separate GAAP revenue figure or cash-flow measure. State which basis you mean whenever you describe the change.
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Use channels and regions to locate the change
The consolidated figure does not show where sales shifted. For fiscal 2027 Q1, NIKE Brand revenue was $11.0 billion, down 4% both reported and currency-neutral. NIKE Direct revenue was $4.1 billion, down 8% reported, while wholesale revenue was $6.8 billion, down 1%. NIKE attributed the brand decline primarily to Greater China and EMEA, partly offset by North American growth. These details add context to the top line, but do not by themselves establish why consumers or retailers changed their purchases.
How to interpret gross margin
Gross profit is revenue minus cost of sales; gross margin is gross profit expressed as a share of revenue. NIKE reported $4.798 billion in gross profit and $6.415 billion in cost of sales, producing a stated gross margin of 42.8%. The margin rose 60 basis points year over year—0.60 percentage point, not 60 percent. NIKE said lower warehousing and logistics costs were the primary reason for the increase.
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A higher gross margin does not guarantee higher net income or EPS. In this quarter, margin rose while net income fell 2%. Later expenses, taxes, interest, and the number of shares also affect the bottom line. The SEC’s financial-statement guide explains how an income statement presents revenue, expenses, and earnings.
EPS, net income, and the share count
EPS means earnings per share: earnings attributable to each share over the stated period. NIKE’s reported diluted EPS was $0.48, compared with $0.49 a year earlier; net income was $712 million, down 2%. The release lists diluted weighted-average shares of 1,484.2 million, versus 1,479.0 million in the year-ago quarter. Diluted EPS accounts for potential dilution from instruments such as stock awards, so it is the relevant figure when the release specifically reports diluted EPS.
EPS is not cash flow, a share-price target, or the dividend. NIKE separately reported a $0.410 dividend declared per common share for the quarter. To understand what sits between revenue and earnings, read the income statement’s expense lines as well as net income and shares. A full assessment also needs cash flow and balance-sheet information, not EPS alone.
Read expense ratios and adjusted margins with their labels
NIKE’s SG&A expense declined 3% in dollars, but SG&A increased to 34.9% of revenue from 34.3% a year earlier. An expense can fall in dollars yet take up a larger share of sales when revenue falls faster. This is why both dollar amounts and ratios matter.
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The release also reported non-GAAP EBIT margin of 8.1%, compared with 7.7% a year earlier. NIKE defines EBIT as net income before net interest income or expense and income tax expense, and cautions that non-GAAP EBIT and EBIT margin should not be considered alone or as substitutes for GAAP measures. Treat them as additional context, not replacements for reported earnings.
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How to read NIKE’s guidance
Guidance is management’s forward-looking expectation, not an achieved result or a guarantee. In its October 1, 2026 release, NIKE expected fiscal 2027 revenue to decline by a high-single-digit percentage. It expected adjusted diluted EPS of $1.15 to $1.35, excluding approximately $0.15 of Pace restructuring expense. That is a full-year adjusted forecast; do not compare it as if it were the same measure or period as the quarter’s $0.48 reported diluted EPS.
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NIKE also cited an expected mid-20% effective tax rate for fiscal 2027, subject to earnings mix and discrete tax items. The company said its estimates for Pace savings and charges depend on assumptions, can change, and may differ materially from actual outcomes. For the complete wording and qualifications, consult the company release.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Put the quarter in longer-term context carefully
NIKE reported fiscal 2026 full-year revenue of $46.4 billion, flat on a reported basis and down 2% currency-neutral. Its fiscal 2026 fourth-quarter gross margin was 49.2%, but the company said the increase included an approximately 900-basis-point benefit from the expected recovery of IEEPA tariffs. That unusual cited benefit makes Q4 a poor stand-alone baseline for judging the underlying direction of gross margin without accounting for the item.
For fuller context than a press release can provide, review the Form 10-Q’s financial statements, management’s discussion and analysis (MD&A), risks, and any relevant non-GAAP reconciliations. The SEC explains that MD&A presents management’s perspective on results, and Investor.gov outlines the sections of a 10-Q in its filing guide. Related SEC learning material is available in its investor guide to financial statements.
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A practical reading order
- Confirm the period. Note the fiscal quarter, its end date, and the release date; compare with the same quarter a year earlier.
- Check revenue on both bases. Separate reported change from currency-neutral change, then look at channels and regions for company-reported context.
- Trace profitability down the statement. Compare gross margin and its stated drivers with operating expenses, net income, and diluted shares.
- Label every adjusted figure. Keep non-GAAP margins and adjusted EPS distinct from GAAP results, and preserve what the adjustment excludes.
- Separate actuals from outlook. Record the forecast period, range or direction, and qualifications; do not present guidance as realized performance.
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