NIKE Reports 35% Q3 Net Income Decline Amid Flat Revenue and Gross Margin Pressure
NKE is trading near its 52-week low of $50.95 (5.5% below the low) on elevated volume (2.1× avg).
Summary
NIKE, Inc. reported fiscal Q3 2026 results with flat revenues, a 35% decrease in net income and diluted EPS, and a 130 basis point decline in gross margin, driven by weakness in NIKE Direct and Converse.
Key Events · Earnings and Guidance · NKE
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Q3 Net Income Plunges 35%
Net income fell to $0.5 billion, with diluted EPS also down 35% to $0.35 for the fiscal third quarter ended February 28, 2026.
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Revenues Flat, Currency-Neutral Down 3%
Total revenues were $11.3 billion, flat on a reported basis but decreased 3% on a currency-neutral basis.
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Gross Margin Contracts
Gross margin decreased by 130 basis points to 40.2%, primarily due to higher tariffs in North America.
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NIKE Direct and Converse See Significant Declines
NIKE Direct revenues were down 7% currency-neutral, while Converse revenues plummeted 37% currency-neutral across all territories.
Analysis · NKE · Manufacturing
The significant 35% year-over-year decline in net income and diluted EPS, coupled with a 130 basis point drop in gross margin, indicates substantial profitability challenges for NIKE. While overall revenues were flat, the 7% currency-neutral decline in NIKE Direct revenues and a steep 37% currency-neutral drop in Converse revenues highlight struggles in key strategic areas and subsidiary brands. This performance, coming after pre-earnings warnings and with the stock trading near its 52-week low, reinforces negative sentiment and suggests ongoing operational headwinds. Investors will be watching for signs of recovery in direct-to-consumer channels and overall profitability in upcoming quarters.
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In the 30 days to Oct 1, 2026, 36.1% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, NKE was trading at $48.15 on NYSE in the Manufacturing sector, with a market capitalization of approximately $78.2B. The 52-week trading range was $50.95 to $80.17. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.