Nike Reports Q4 Earnings Beat Driven by Significant Tariff Recovery; Full-Year Revenue Flat
NKE is trading near its 52-week low of $40 (5.0% above the low) on elevated volume (1.9× avg).
Summary
Nike reported Q4 diluted EPS of $0.72, significantly beating analyst estimates, primarily driven by a $0.52 per share benefit from IEEPA tariff recoveries, though underlying revenue trends remain weak.
Key Events · Earnings and Guidance · NKE
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Q4 Diluted EPS Beat Expectations
Diluted earnings per share for the fourth quarter was $0.72, significantly exceeding analyst projections of $0.12. This includes a $0.52 benefit from IEEPA tariff recoveries, meaning adjusted EPS was $0.20.
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Significant IEEPA Tariff Recovery Boosts Gross Margin
Gross margin for the fourth quarter increased by 890 basis points to 49.2%, primarily due to an approximately 900 basis point benefit from the expected recovery of $986 million in IEEPA tariffs.
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Underlying Revenue Trends Remain Challenged
Fourth quarter revenues were $11.0 billion, down 1% on a reported basis and 4% on a currency-neutral basis. Full-year revenues were flat at $46.4 billion, down 2% currency-neutral.
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NIKE Direct and Converse Segments Decline
NIKE Direct revenues for Q4 were down 7% reported and 9% currency-neutral, while Converse revenues plummeted 32% reported and 34% currency-neutral across all territories.
Analysis · NKE · Manufacturing
NIKE, Inc. reported mixed fiscal Q4 and full-year 2026 results. While Q4 diluted EPS of $0.72 significantly beat analyst expectations of $0.12, this was largely due to a $0.52 per share benefit from the expected recovery of International Emergency Economic Powers Act (IEEPA) tariffs. Excluding this one-time benefit, adjusted EPS of $0.20 still surpassed estimates. The company's gross margin also saw a substantial increase, primarily from the IEEPA recovery. However, underlying revenue trends remain challenged, with Q4 revenues down 1% reported and 4% currency-neutral, and full-year revenues flat. NIKE Direct and Converse segments experienced notable declines. This filing provides a crucial update on the company's financial health amidst its ongoing restructuring efforts and comes as the stock trades near its 52-week low, potentially offering some relief despite persistent top-line headwinds.
At the time of this filing, NKE was trading at $42.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $60.8B. The 52-week trading range was $40.00 to $80.17. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.