NIKE Inc.
NKEFinancial Snapshot
ticker: NKE step: 04 generated: 2026-05-12 source: quick-research
NIKE, Inc. (NKE) — Financial Snapshot
(Nike's fiscal year ends in late May; FY2025 ended May 31, 2025; FY2026 = year ending ~May 2026.)
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|---|---|---|---|---|
| Revenue | $51.2B | $51.4B | $46.3B | -10% |
| Gross Margin | 44.1% | 44.6% | ~42% | -260 bps |
| Operating Margin | 13.0% | 12.4% | ~9% | -340 bps |
| Net Income | $5.07B | $5.70B | ~$3.2B | -44% |
| Diluted EPS | $3.23 | $3.73 | ~$2.10 | -44% |
Q2 FY2026 Results (Quarter Ended November 30, 2025)
| Metric | Q2 FY26 |
|---|---|
| Revenue | $12.4B (+1% reported; flat currency-neutral) |
| Gross Margin | 40.6% (-300 bps YoY) |
| Diluted EPS | $0.53 |
| Wholesale Channel | +8% YoY |
| Nike Direct Channel | -8% YoY |
| Converse | -30% YoY |
| Net Income | $0.8B (-32% YoY) |
Cash Flow & Capital Allocation (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$7B |
| Capital Expenditures | ~$1B |
| Free Cash Flow | ~$6B |
| Capital Returned to Shareholders | $5.3B (FY25) |
| Dividends Paid | $2.3B (+6% YoY) |
| Share Repurchases | ~$3.0B |
| Quarterly Dividend | $0.41 |
| Annual Dividend | $1.64 |
| Dividend Yield | ~2.5% |
| 23 Consecutive Years of Dividend Increases | confirmed |
| Cash & Marketable Securities | ~$10B |
| Total Debt | ~$12B |
Key Ratios (approximate)
- P/E: ~32x (FY26E EPS ~$2.10–2.40) | EV/EBITDA: ~17x | FCF Yield: ~6%
- Revenue Growth (FY25): -10% (turnaround year); Q2 FY26: +1%
- Gross Margin: 42% (FY25); contracted from 44–45% historical
- Operating Margin: ~9% (FY25); contracted from 12–15% historical
- Dividend Yield: ~2.5% | 23 consecutive years dividend increases
- Net Debt: small (~$2B)
Turnaround Trajectory
FY25 was the rebase year under new CEO Elliott Hill (took over October 2024):
- Revenue down -10% as Nike reset wholesale + product portfolio
- Gross margin compressed 260 bps on markdowns + clearance
- Operating margin compressed 340 bps
- Net income halved
- Q2 FY26 ($12.4B, +1% revenue) confirms inflection back to positive growth
- Wholesale recovering +8%; Direct still declining -8%
- Running category +20%+ for two consecutive quarters
The "Win Now" turnaround plan focuses on five pillars (culture, product, marketing, marketplace, in-person experiences). Hill is rebuilding wholesale partnerships, refocusing on sports categories vs. gender-segmented organization, and rebuilding innovation cadence.
FY2026 Guidance
Nike has been cautious on full-year guidance — Q3 FY26 expectations: gross margin expansion expected to begin Q2 FY27 as tariff impacts subside. Full year + long-term guidance deferred to Investor Day in fall 2026.
Forward Estimates
FY2026 Consensus (Jun 2025 – May 2026):
- Revenue: ~$46–48B (flat to slight growth)
- Adjusted EPS: ~$2.00–2.40
- Gross Margin: 41–42% (rebuilding)
Bull case: Running category share recovery vs. On + Hoka; wholesale rebuild drives unit volumes; Vomero 18 + Pegasus Premium + Structure Plus innovation resonates; gross margin recovers to 44%+ by FY27; EPS reaches $3.50+ by FY27; multiple expands to 25x P/E. Bear case: Greater China continues to deteriorate; On + Hoka share gains accelerate; Jordan/Lifestyle saturation continues; FY27 EPS stuck at $2.50; multiple compresses. Consensus targets ~$75–85 vs. trading ~$60–70 (~10–30% implied upside).
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $NKE.