NIKE (NKE) Reports Q4 Revenue of $11.0 Billion With Tariff-Driven EPS Boost
Key Takeaways
- NIKE reported fourth-quarter revenue of $11.0 billion, down 1% on a reported basis and 4% on a currency-neutral basis from the prior year.
- Diluted earnings per share reached $0.72, including a $0.52 benefit from expected IEEPA tariff recoveries, well above consensus estimates around $0.12-$0.13.
- Gross margin expanded sharply to 49.2%, up 890 basis points, driven primarily by the tariff-related benefit.
- Full-year fiscal 2026 revenue totaled $46.4 billion, flat on a reported basis and down 2% currency-neutral, with diluted EPS of $2.10, down 3% year-over-year.
- NIKE Brand wholesale revenues grew while NIKE Direct and Converse segments declined; Greater China remained a notable headwind.
- Shares declined following the release amid investor focus on ongoing demand challenges and cautious commentary.
Earnings Context and Why It Matters
NIKE operates on a fiscal year ending May 31, which means its fourth quarter closes out fiscal 2026. This report offers a complete look at full-year performance during a period of ongoing industry headwinds, such as softer consumer demand in major markets and competitive pressures in athletic footwear and apparel. These results provide useful signals on inventory levels, gross margin trends, and how well NIKE’s strategic efforts to strengthen its brand and improve operations are working. The earnings also underscore the influence of external factors like tariff recoveries on profitability.
A Closer Look at the Reported Results
NIKE posted fourth-quarter revenues of $11.0 billion, down 1% on a reported basis and 4% currency-neutral. NIKE Brand revenues came in at $10.7 billion, flat on a reported basis and down 3% currency-neutral, as wholesale rose 4% reported while NIKE Direct dropped 7%. Converse revenues fell 32%. Gross margin improved to 49.2% from the prior year, reflecting an approximately 900 basis point benefit tied to the expected recovery of International Emergency Economic Powers Act (IEEPA) tariffs totaling $986 million. Diluted EPS was $0.72 versus $0.14 a year earlier, including the $0.52 tariff impact. Net income reached $1.1 billion.
For the full fiscal year, revenues totaled $46.4 billion, flat reported and down 2% currency-neutral. Diluted EPS declined 3% to $2.10, and net income fell 3% to $3.1 billion. The company returned approximately $2.5 billion to shareholders through dividends and share repurchases.
Market Reaction and Investor Sentiment
Following the June 30, 2026, release, NIKE shares declined as investors focused on revenue softness and commentary that highlighted continued challenges in sell-through and demand, particularly in Greater China. While the EPS beat stood out, much of the outperformance came from the one-time tariff recovery rather than core operational strength. Market participants viewed the results as confirmation of ongoing top-line pressures despite improving product and brand initiatives. One thing that stands out here is how the market separated the tariff benefit from underlying trends.
Forward Outlook and Key Factors to Monitor
Investors will be watching for continued progress on NIKE’s strategic priorities, including product innovation in performance categories and enhancements to its marketplace presence. Management highlighted financial discipline and cost management amid a challenging environment. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Key areas include trends in Greater China and other international markets, where recent softness has weighed on results. Wholesale channel performance and the trajectory of NIKE Direct revenues will also matter, as shifts between channels influence overall growth.
Additional focus areas encompass gross margin sustainability beyond the tariff benefit, operating expense control, and inventory positioning. Upcoming quarterly updates will provide further visibility into demand signals and the impact of ongoing initiatives on long-term positioning.
Using AI Tools in My Analysis
When evaluating stocks like this, I find it helpful to apply data-driven screening tools as part of the process. Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. I’ve used it to quickly surface comparable names and test ideas against broader industry data.
Disclaimer
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NKE in downward trend: 10-day moving average crossed below 50-day moving average on June 25, 2026
The 10-day moving average for NKE crossed bearishly below the 50-day moving average on June 25, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NKE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for NKE entered a downward trend on July 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 63 cases where NKE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 07, 2026. You may want to consider a long position or call options on NKE as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for NKE just turned positive on July 06, 2026. Looking at past instances where NKE's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
NKE moved above its 50-day moving average on July 10, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NKE advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
NKE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.421) is normal, around the industry mean (2.746). P/E Ratio (21.129) is within average values for comparable stocks, (47.009). NKE's Projected Growth (PEG Ratio) (1.690) is slightly higher than the industry average of (1.266). Dividend Yield (0.037) settles around the average of (0.032) among similar stocks. P/S Ratio (1.416) is also within normal values, averaging (1.854).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. NKE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NKE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
a maker of athletic footwear and apparel
Industry WholesaleDistributors
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