NIKE, Inc. Earnings Summary — Q4 2026

• Net income surged 406% year-over-year to $1.069 billion, rebounding sharply from a low base in Q4 2025.
• Revenue remains under pressure, contracting 1.1% year-over-year to $10.97 billion, reflecting ongoing demand headwinds.
• Operating expenses were tightly managed, down slightly to $4.08 billion compared to $4.15 billion in the prior year period.
• Gross profit improved significantly to $5.39 billion versus $4.47 billion last year, suggesting better inventory management or reduced promotions.
• The company is undergoing a leadership transition to regain its 'athletic core' following a period of underperformance in its DTC strategy.
• Long-term debt remains elevated at nearly $8 billion, a significant structural shift from historical levels.

Management is focusing on a 'reset' year, pivoting back toward wholesale partnerships and accelerated product innovation to counteract market share losses to niche competitors. Previous forward-looking guidance has been cautious following multiple downward revisions in earlier periods.

Improving

While revenue growth is still negative, the massive recovery in net margins and EPS suggests that headcount and cost-reduction measures are successfully stabilizing the bottom line.

Nike faces a difficult balancing act of cultural restoration and financial stabilization. The company aims to reclaim its innovation edge to compete with agile new entrants like Hoka and On, while rebuilding legacy wholesale relationships.