Nike (NKE) Q4 2026 earnings

Nike On Tuesday, it reported quarterly profit and revenue that beat Wall Street expectations, despite another decline in sales in its main market of China.

Here’s what Nike reported for its fiscal fourth quarter compared to analyst expectations, according to LSEG consensus estimates:

• EPS: 20 cents were revised versus 13 cents expected
• profit: $10.97 billion versus $10.86 billion expected

Nike shares fell as much as 8% in extended trading Tuesday before recouping much of the losses.

The company said gross margin rose 8.9% during the quarter, largely due to an expected tariff recovery of about $986 million after the Supreme Court struck down several of President Donald Trump’s global tariffs. Tariff refunds contributed 52 cents to Nike’s earnings per share during the quarter.

Analysts excluded this gain from their revised earnings expectations.

As of the end of the quarter, Nike had accumulated more than $300 million in cash related to its tariff refund claims, company executives said on a call with analysts.

Nike achieved net income of $1.07 billion, or 72 cents per share, compared with $211 million, or 14 cents per share, the previous year.

Revenues rose to $10.97 billion, down 1% from $11.10 billion in the same period a year earlier.

Nike’s revenues in North America, its largest market, rose 3% to $4.83 billion. It came in below analysts’ expectations of $4.88 billion, according to StreetAccount.

Sales in Nike’s Greater China market fell 12% to $1.30 billion. However, the company beat Wall Street expectations with revenue of $1.24 billion.

On a call with analysts, CEO Elliott Hill said the company was “fully committed to winning back” the Chinese market again.

“In general, the results are not yet in,” Hill said. “We know we are not living up to our full potential, particularly in Nike Sportswear and Jordan streetwear, where selling continues to be challenging, impacting both current sales and future order books.”

For the full fiscal year 2026, Nike reported net income of $3.11 billion, or $2.10 per share, compared to $3.22 billion, or $2.16 per share, the previous year.

As the company looks to the future, it reiterated the guidance provided in the last fiscal quarter, and expects earnings to be “shallow” through the first two quarters of fiscal 2027, according to Friend. Nike also expects gross margin for the fiscal first quarter of 2027 to be slightly positive.

The profits come as Hill tries to reposition Nike for growth amid declining sales. The company has previously warned that its transformation will not be linear with certain parts of the business improving at different rates.

Hill previously said that sectors that Nike initially focused on transforming are starting to see “momentum.”

Transformation efforts are also being made in the face of macroeconomic uncertainty, fueled by tariffs, war in the Middle East, rising gas prices and more. Nike’s consumer is “under pressure around the world,” and it’s having a big impact on athletic apparel, which saw sales decline by double-digit percentages in the quarter, CFO Matt Friend said on the call with analysts.

In April, Nike launched a massive round of layoffs, cutting 1,400 jobs across the organization in its second workforce reduction this year.

Last week, the company announced a planned transition to CFO, with the former Pfizer CEO David Denton takes over at Friend, effective August 17.

However, Nike has seen a boom from the World Cup, which North America hosted this summer. Although not an official sponsor, the company has seen its advertising significantly outperform its competitors in the sneaker space Adidas And gaining great traction through social media.

“What feels different this time is that we’re not treating the tournament as a single moment, but rather using it to reshape our business, tell a connected story over time, engage different communities in relevant ways and build momentum that extends beyond the tournament,” Hill said on the phone with analysts.