NIKE, Inc. (NKE) – Q3 Fiscal 2026

​NIKE's performance this quarter was a "beat," but one that came alongside flat revenue growth and declining margins as the company aggressively clears out older inventory.

• Revenue:$11.3 billion, essentially flat on a reported basis (slightly beating the $11.23B estimate) and down 3% on a currency-neutral basis.

• Diluted EPS:$0.35, surpassing the consensus estimate of $0.29–$0.30, but still a 35% decrease compared to the prior year.

• Gross Margin: Compressed by 130 basis points to 40.2%, driven primarily by higher markdowns and increased promotional activity to manage inventory levels.

• Net Income:$520 million, down 35% year-over-year.

• Inventory: One bright spot was inventory health, which decreased 1% year-over-year to $8.1 billion, showing progress in the company's effort to "clean up" the marketplace.

Segment Performance

• NIKE Wholesale:$6.5 billion, up 5% (a sign of re-emphasizing retail partnerships).

• NIKE Direct:$4.5 billion, down 4%, led by a 9% decline in NIKE Brand Digital sales.

• Converse: Significantly pressured, with revenue falling 35% to $264 million.

• Regional Growth: North America showed resilience with 3% revenue growth, while Greater China and EMEA regions faced continued headwinds.

• The Takeaway: CEO Elliott Hill admitted that the company's "comeback is taking longer than I would like." While the EPS beat provided some cushion, the market focused on the weak Direct-to-Consumer (DTC) performance and the lower margins. The stock initially jumped on the "beat" but later saw volatility as investors weighed the slow pace of the turnaround against the broader sector's performance.