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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchTo read Nike’s latest earnings, start with the year-over-year comparison, then connect revenue to margins, net income and earnings per share (EPS). In fiscal 2027’s first quarter, ended August 31, 2026, NIKE reported $11.213 billion in revenue, down 4% as reported and 5% on a currency-neutral basis; gross margin rose to 42.8%, while net income fell 2% to $712 million and diluted EPS slipped to $0.48. Management’s full-year outlook was for a high-single-digit revenue decline and adjusted diluted EPS of $1.15 to $1.35, excluding specified restructuring costs. These are different kinds of figures: quarterly results are reported outcomes, while guidance is a forecast.
Start with the quarter and the comparison
NIKE’s fiscal 2027 first quarter ended August 31, 2026; the company announced results on October 1, 2026. Compare it with the same quarter a year earlier rather than assuming that a change from the prior quarter reflects an underlying trend. Retail and apparel results can vary by season, so same-quarter comparisons are generally more informative.
| 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 0.6 percentage point, or 60 basis points |
| Net income | $712 million | Not stated in the cited fiscal 2027 Q1 release summary | Down 2%, as reported by NIKE |
| Diluted EPS | $0.48 | $0.49 | Down $0.01 |
NIKE’s headline release rounds current-quarter revenue to $11.2 billion, while its income-statement table gives the more precise figure of $11.213 billion. Use the precise figure when comparing amounts, and retain the company’s reported growth percentages rather than recalculating from rounded figures. The figures and year-over-year comparisons are from NIKE’s fiscal 2027 Q1 release and fiscal 2026 Q1 release.
Is Nike revenue growing?
No: revenue declined year over year in fiscal 2027 Q1. NIKE reported $11.213 billion, down 4% on a reported basis and 5% currency-neutral. Reported growth includes the effect of currency movements; currency-neutral growth is the company’s supplemental comparison that removes those effects. It is not a separate GAAP revenue figure or a measure of cash received.
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Use channels and regions to understand the top line
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%. The company attributed the brand decline primarily to Greater China and EMEA, partly offset by growth in North America. These details identify where sales were weaker or stronger; they do not by themselves establish why consumers changed their buying behavior.
For longer-term context, NIKE reported fiscal 2026 full-year revenue of $46.4 billion, flat as reported and down 2% currency-neutral. Avoid treating a full-year result as directly comparable to one quarter without accounting for the different periods. NIKE’s fiscal 2026 fourth-quarter and full-year release also reported fourth-quarter gross margin of 49.2%, including an approximately 900-basis-point benefit from the expected recovery of IEEPA tariffs; that unusual item makes the quarter an imperfect baseline for an underlying margin trend.
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What does Nike’s gross margin tell you?
Gross profit is revenue minus cost of sales; gross margin is gross profit as a share of revenue. For fiscal 2027 Q1, NIKE reported revenue of $11.213 billion, cost of sales of $6.415 billion and gross profit of $4.798 billion, producing a stated gross margin of 42.8%. The margin was 60 basis points higher than a year earlier. One basis point is one-hundredth of a percentage point, so 60 basis points equals 0.60 percentage point.
NIKE said the expansion was primarily due to lower warehousing and logistics costs. That is management’s explanation of the change, not a guarantee that the improvement will continue. Nor does a higher gross margin automatically mean higher earnings: net income fell 2% in this quarter even as gross margin rose.
How should you interpret EPS and the other profit measures?
EPS means earnings per share: the portion of earnings attributable to each share under the applicable accounting calculation. NIKE reported diluted EPS of $0.48 for the quarter, compared with $0.49 a year earlier. Diluted EPS accounts for potential shares that could dilute the per-share figure; NIKE reported diluted weighted-average shares of 1,484.2 million, compared with 1,479.0 million in the prior-year quarter. Read EPS alongside net income and share count, rather than treating a one-cent change as a complete account of performance.
EPS is not cash flow, a dividend amount or a stock-price target. NIKE separately reported a quarterly dividend declared of $0.410 per common share; that is a distinct figure from diluted EPS. The SEC’s financial statement guide explains how income statements report revenue, expenses and earnings over a period and why individual line items need context.
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Look below gross profit
Expenses below gross profit can change the relationship between sales and earnings. NIKE’s selling, general and administrative (SG&A) expense declined 3% in dollars, yet SG&A rose from 34.3% to 34.9% of revenue. A cost can fall in absolute terms but consume a greater share of sales when revenue falls faster.
NIKE also reported non-GAAP EBIT margin of 8.1%, up from 7.7% a year earlier. EBIT means earnings before interest and taxes; NIKE defines its non-GAAP EBIT measure accordingly and cautions that it should not be considered alone or as a substitute for GAAP measures. Treat the margin as an additional lens, not a replacement for the reported income statement.
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How to read Nike’s guidance
Guidance is management’s expectation for a future period, not a result that has already happened. 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. The EPS outlook is adjusted and annual; it is not directly comparable with the $0.48 reported diluted EPS for one quarter.
NIKE also expected a mid-20% effective tax rate for the fiscal year, subject to earnings mix and discrete tax items. The company said its Pace savings and charge estimates depend on assumptions, may change and could differ materially from actual outcomes. These qualifications matter when interpreting the forecast: it is neither assured nor a promise of future performance. See the company’s fiscal 2027 Q1 release for its outlook and non-GAAP disclosures.
Where to check the details behind a headline
An earnings release is a useful entry point, but the quarterly Form 10-Q provides the fuller interim picture. Its financial statements show the reported figures; Management’s Discussion and Analysis (MD&A) gives management’s account of results and the factors affecting them. The filing also contains other disclosures, including risks. Use the 10-Q and its non-GAAP reconciliations when a headline figure raises a question the release does not answer. The SEC’s investor guide to financial statements explains MD&A, while Investor.gov’s guide to reading a 10-K or 10-Q outlines the filing’s sections.
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