# NIKE, Inc. (NKE) Q1 2026 Financial Results Summary
BEAVERTON, Ore., Sept. 30, 2025 — NIKE, Inc. (NYSE:NKE) today reported fiscal 2026 financial results for its first quarter ended August 31, 2025.
### Financial Highlights
– **Total Revenues**: $11.7 billion
– **Growth**: Up 1% on a reported basis vs. Q1 2025; down 1% on a currency-neutral basis.
– **NIKE Direct Revenues**: $4.5 billion
– **Change**: Down 4% on a reported basis; down 5% on a currency-neutral basis.
– **Wholesale Revenues**: $6.8 billion
– **Change**: Up 7% on a reported basis; up 5% on a currency-neutral basis.
– **Gross Margin**: 42.2%
– **Change**: Decreased by 320 basis points vs. prior year.
– **Diluted Earnings Per Share (EPS)**: $0.49
– **Change**: Decreased by 30% vs. Q1 2025.
### Detailed Income Statement Review
– **Revenues Breakdown**:
– **NIKE Brand Revenues**: $11.4 billion
– **Growth**: Up 2% on a reported basis; flat on a currency-neutral basis.
– **NIKE Direct**:
– Digital sales decreased by 12%.
– Retail store sales decreased by 1%.
– **Converse Revenues**: $366 million
– **Change**: Down 27% on a reported basis; down 28% on a currency-neutral basis.
– **Cost Management**:
– **Selling and Administrative Expense**: $4.0 billion
– **Change**: Decreased 1% vs. prior year.
– **Demand Creation Expense**: $1.2 billion
– **Change**: Down 3%, reflecting higher previous investment in sports events.
– **Operating Overhead Expense**: $2.8 billion
– **Change**: Flat compared to prior year.
– **Tax Rate**:
– Effective tax rate was 21.1%, up from 19.6% in Q1 2025.
– **Net Income**: $0.7 billion
– **Change**: Down 31% vs. Q1 2025.
### Quarterly Dividend and Share Repurchase
– **Dividends**: $591 million declared in dividends, **up 6%** from the prior year.
– **Share Repurchases**: $123 million spent on repurchasing shares, with 1.8 million shares retired as part of an $18 billion program initiated in 2022.
### Balance Sheet Snapshot as of August 31, 2025
– **Inventories**: $8.1 billion
– **Change**: Down 2% vs. prior year.
– **Cash and Cash Equivalents and Short-Term Investments**: $8.6 billion
– **Change**: Decreased by approximately $1.7 billion from last year.
– **Shareholder Equity**: $13.5 billion
– **Change**: Down 3% vs. prior year.
### Overview and Future Outlook
– NIKE’s management highlighted the ongoing work towards recovery across sports, geographies, and channels amidst a “dynamic operating environment.”
– Continued focus on investments and execution in North America, wholesale distribution, and key sports segments.
– **Management Expectations**:
– Progress is expected to vary across different dimensions of the business, with systematic improvements in its “Win Now” strategy.
For additional details, NIKE, Inc. will conduct a conference call on September 30, 2025, to discuss these results, with an archived version available later.
**Note**: All percentage metrics tracked growth or decrease in comparison to the same quarter from the previous year (Q1 2025).
| (In millions, except per share data) | 8/31/2025 | 8/31/2024 | % Change |
|---|---|---|---|
| Revenues | $11,720 | $11,589 | 1% |
| Cost of sales | $6,777 | $6,332 | 7% |
| Gross profit | $4,943 | $5,257 | -6% |
| Gross margin | 42.2% | 45.4% | |
| Demand creation expense | $1,188 | $1,226 | -3% |
| Operating overhead expense | $2,828 | $2,822 | 0% |
| Total selling and administrative expense | $4,016 | $4,048 | -1% |
| % of revenues | 34.3% | 34.9% | |
| Interest expense (income), net | -$18 | -$43 | |
| Other (income) expense, net | $23 | -$55 | |
| Income before income taxes | $922 | $1,307 | -29% |
| Income tax expense | $195 | $256 | -24% |
| Effective tax rate | 21.1% | 19.6% | |
| NET INCOME | $727 | $1,051 | -31% |
| Earnings per common share: | |||
| Basic | $0.49 | $0.70 | -30% |
| Diluted | $0.49 | $0.70 | -30% |
| Weighted average common shares outstanding: | |||
| Basic | 1,476.6 | 1,497.7 | |
| Diluted | 1,479.0 | 1,502.0 | |
| Dividends declared per common share | $0.400 | $0.370 |
| ASSETS | August 31, 2025 | August 31, 2024 | % Change |
|---|---|---|---|
| Cash and equivalents | $7,024 | $8,485 | -17% |
| Short-term investments | $1,551 | $1,809 | -14% |
| Accounts receivable, net | $4,962 | $4,764 | 4% |
| Inventories | $8,114 | $8,253 | -2% |
| Prepaid expenses and other current assets | $2,247 | $1,729 | 30% |
| Total current assets | $23,898 | $25,040 | -5% |
| Property, plant and equipment, net | $4,861 | $4,948 | -2% |
| Operating lease right-of-use assets, net | $2,727 | $2,792 | -2% |
| Identifiable intangible assets, net | $259 | $259 | 0% |
| Goodwill | $240 | $240 | 0% |
| Deferred income taxes and other assets | $5,349 | $4,588 | 17% |
| TOTAL ASSETS | $37,334 | $37,867 | -1% |
| Current portion of long-term debt | $0 | $1,000 | -100% |
| Notes payable | $4 | $12 | -67% |
| Accounts payable | $3,772 | $3,357 | 12% |
| Current portion of operating lease liabilities | $506 | $491 | 3% |
| Accrued liabilities | $5,923 | $5,075 | 17% |
| Income taxes payable | $706 | $693 | 2% |
| Total current liabilities | $10,911 | $10,628 | 3% |
| Long-term debt | $7,996 | $7,998 | 0% |
| Operating lease liabilities | $2,555 | $2,625 | -3% |
| Deferred income taxes and other liabilities | $2,404 | $2,672 | -10% |
| Redeemable preferred stock | $0 | $0 | |
| Shareholders’ equity | $13,468 | $13,944 | -3% |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $37,334 | $37,867 | -1% |
