Consumer Discretionary · NYSE: NKE
Nike: how the business works
Nike designs and markets athletic shoes, clothing and equipment, made mostly by outside factories, with revenue of $46.4 billion in FY2026.
By Hardik Bhandare · Checked against filings:
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NIKE, Inc. · Beaverton, Oregon
Last updated
- Revenue, FY2026
- $46.4B
- Net income, FY2026 (incl. $986M pre-tax tariff benefit)
- $3.1B
- Employees, May 31, 2026
- About 73,000
- Incorporated in Oregon
- 1967
- Board seats elected by Class A holders, 2026
- 8 of 11
The short version
Nike in 5 points
1 · What it sells
Nike designs and markets athletic shoes, clothing and sports equipment under the Nike, Jordan and Converse names, with $46.4 billion of revenue in FY2026, the year ended May 31, 2026.
2 · Who pays it
In FY2026, wholesale accounts such as sporting goods stores paid 60.5% of Nike's revenue, shoppers buying directly from Nike and Converse 39.2%, and licensing and other items 0.3%.
3 · What it keeps from $100
Of every $100 that came in during FY2026, Nike kept $6.7 as net income, including a one-time $986 million pre-tax tariff benefit (diluted EPS $2.10, or $1.58 by Nike's count without it); Nike reports no operating income line, and income before taxes, which includes $103 million of net interest and other income, was $3.9 billion.
4 · Where the operating profit comes from
Nike reports segment EBIT (earnings before interest and taxes), not operating profit: in FY2026 North America earned $5.38 billion, including $965 million of the tariff benefit, of the $10.48 billion from its regions and Converse, before central units subtracted $6.63 billion.
5 · The one thing to watch
Nike said on Oct 1, 2026 that it expects FY2027 revenue to fall by high single digits, and Q1 FY2027 revenue fell 4.3%, with Greater China down 22.0%.
Sources: From Nike's FY2026 10-K, its Jun 30, 2026 earnings call and its Q1 FY2027 earnings release · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2026
Where does $100 of Nike's money go?
Nike · FY2026
Receipt for every $100
| Products sold (cost of sales) | $57.0 |
|---|---|
| Advertising and athlete deals (demand creation) | $10.2 |
| Wages, rent and other overhead | $24.4 |
| Income tax | $1.7 |
| Kept as net income | $6.7 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2026 10-K. Of every $100 that came in during FY2026 (revenue plus net interest and other income): each line = line ÷ $46.5 billion × 100. Cost of sales is after the one-time $986 million pre-tax tariff benefit, which equals $2.13 per $100 of revenue.
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02The business in one line
What does Nike do?
Sporting goods stores, other retailers and shoppers pay Nike for shoes and clothing made by independent factories; most of the money goes on those products, staff and marketing, and what's left is profit.
- In FY2026, wholesale accounts paid 60.5% of Nike's revenue, and shoppers buying directly from Nike and Converse paid 39.2%.
- Of every $100 that came in during FY2026, cost of sales took $57.0 and Nike kept $6.7 as net income, including a one-time tariff benefit.
03Who pays it
Who pays Nike?
Wholesale accounts
61%
of revenue
Footwear, sporting goods and department stores, plus distributors, that resell Nike products: 60.5% of FY2026 revenue, or $28.06 billion.
Shoppers buying directly
39%
of revenue
People buying in Nike and Converse stores and on their digital platforms: 39.2% of FY2026 revenue, or $18.20 billion.
Other
0%
of revenue
Licensing and other items reported apart from those two channels: 0.3% of FY2026 revenue, or $143 million.
- Wholesale accounts61%
- Shoppers buying directly39%
- Other0%
How spread out the customers are
No customer reached 10% of Nike's FY2026 revenue. The three largest US customers were 29% of US sales, up from 22% in FY2022. The three largest customers outside the US were 16% of non-US sales.
04Why it makes money
Why does Nike make money?
Nike earns the gap between what its products sell for and what they cost, then spends much of it on marketing and overhead.
Nike's net income per $100 of revenue fell from $12.9 in FY2021 to $6.7 in FY2026. Over that time, cost of sales and demand creation both took more of each $100. The FY2026 figure includes a tariff benefit equal to $2.13 per $100 of revenue, before tax.
Net income per $100 of revenue
$12.9$6.7
FY2021 to FY2026
- Nike designs products and pays outside factories to make them
- Advertising and athlete deals build demand for the brand
- Retailers and shoppers buy, some at full price and some at a discount
- The gap between price and cost is gross profit
- Overhead and tax come out, and the rest is net income
- Cash pays for new products, marketing and dividends
↺ Step 6 feeds back into step 1.
05Business segments · FY2026
Which businesses make up Nike?
North America
44%Nike and Jordan sales in the region. EBIT (earnings before interest and taxes, Nike's segment measure) was $5.38 billion, including $965 million of the tariff benefit.
Revenue $20.5B
EMEA
27%Nike and Jordan sales in Europe, the Middle East and Africa. EBIT was $2.42 billion.
Revenue $12.6B
Asia Pacific & Latin America
14%Nike and Jordan sales in these regions, outside Greater China. EBIT was $1.39 billion.
Revenue $6.2B
Greater China
13%Nike and Jordan sales in Greater China. EBIT was $1.28 billion. Revenue fell 22.0% in Q1 FY2027 from a year earlier.
Revenue $5.8B
Converse
3%Casual sneakers and clothing, reported as its own brand. EBIT was $18 million, including $21 million of the tariff benefit.
Revenue $1.2B
Central units
0%Global Brand Divisions (product design, digital and technology costs) and Corporate. Together they subtracted $6.63 billion of EBIT, against $10.48 billion from the five units above. Not charted.
Revenue $51M
How the mix changed
- North America
- EMEA
- Asia Pacific & Latin America
- Greater China
- Converse
- Central units
Revenue by segment, FY2021 to FY2026.
US$
See the numbers
06The numbers · Consolidated · US$
How has Nike done?
Revenue
$46.4BFY2026
Revenue reached $51.4 billion in FY2024, fell 9.8% to $46.3 billion in FY2025 and was $46.4 billion in FY2026; Q1 FY2027 revenue fell 4.3% from a year earlier.
US$
See the numbers
Net profit
$3.1BFY2026
Net income fell from $6.0 billion in FY2022 to $3.1 billion in FY2026, which includes the $986 million pre-tax tariff benefit; Nike reports no operating income line, so this page shows no EBITDA.
US$
See the numbers
Profit kept per $100 of revenue
$6.7FY2026
Net income per $100 of revenue fell from $12.9 in FY2021 to $6.7 in FY2026, a figure that includes the tariff benefit.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$2.2BFY2026
Free cash flow fell from $6.6 billion in FY2024 to $2.2 billion in FY2026, when $684 million of the tariff benefit was still a receivable.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (May 31; FY2026 is the year ended May 31, 2026, and Q1 FY2027 ended Aug 31, 2026). Net profit is the share belonging to the company's owners.
Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares
07Who runs it
Who runs Nike, and did they deliver?
Elliott Hill
President and Chief Executive Officer · since 2024
Joined Nike in 1988, retired in 2020 and returned as CEO on Oct 14, 2024. FY2026 total pay was $36.3 million, 746 times the median employee's $48,695.
Mark Parker
Executive Chairman · since 2020
Joined Nike in 1979; not independent under NYSE rules because he is employed by the company.
David Denton
Executive Vice President and Chief Financial Officer · since 2026
Started in August 2026; earlier CFO of Pfizer and Lowe's. From Sep 4, 2026 he is also Interim Corporate Controller.
Venkatesh Alagirisamy
Executive Vice President, Chief Operating Officer · since 2025
Joined Nike in 2006; appointed effective Dec 8, 2025.
Philip Knight
Co-founder and Chairman Emeritus
Not a director: a non-voting observer at board meetings. He formed Swoosh, LLC in 2015.
Timothy Cook
Lead Independent Director
Executive Chair of Apple Inc. since Sep 1, 2026
Alexandre Arnault
Director · since 2026
Added to the board on Sep 15, 2026, making 12 directors.
What they said, and what happened
5 delivered · 1 withdrawn · 2 too early to tell
Said on Sep 30, 2025
Nike said wholesale would return to modest growth in FY2026.
DeliveredWhat happened
FY2026 Nike Brand wholesale revenue rose 6% as reported and 4% excluding currency moves.
Said on Dec 18, 2025
Nike guided Q3 FY2026 revenue down low single digits, gross margin down about 175–225 basis points and selling and administrative expense up low single digits.
DeliveredWhat happened
Revenue was $11.28 billion, against $11.27 billion a year earlier. Gross margin fell 130 basis points, and the expense rose 2%.
Said on Mar 31, 2026
Nike guided Q4 FY2026 revenue down 2–4% and gross margin down about 25–75 basis points.
DeliveredWhat happened
Revenue fell 1% as reported and 4% excluding currency moves. Gross margin was 40.2% without the tariff benefit, down 10 basis points, and 49.2% with it. Guidance did not include the benefit.
Said on Mar 31, 2026
Nike said its Win Now actions would be finished by the end of calendar 2026, repeated in its 10-K as "by the end of December 2026".
WithdrawnWhat happened
The Oct 2, 2026 10-Q says Sportswear, Jordan and Greater China actions are expected to extend beyond FY2027, and Converse actions to run through FY2027.
Said on Mar 31, 2026
Nike said gross margin expansion would begin in Q2 FY2027, then on Jun 30, 2026 said it would begin in Q1 FY2027.
DeliveredWhat happened
Q1 FY2027 gross margin rose 60 basis points to 42.8%.
Said on Jun 30, 2026
Nike guided Q1 FY2027 revenue down low to mid single digits, gross margin slightly positive and selling and administrative expense flat.
DeliveredWhat happened
Revenue fell 4%, gross margin rose 60 basis points, and the expense fell 3%.
Said on Oct 1, 2026
CFO David Denton said: "under all scenarios, we have support for maintaining and ultimately growing the dividend over time".
Too early to tellWhat happened
Nike paid $610 million of dividends in Q1 FY2027. Denton said the topic would be covered at the November Investor Day.
Said on Oct 1, 2026
Nike said it expects Pace to deliver about $2.5 billion of cumulative savings through FY2031, before charges and any reinvestment.
Too early to tellWhat happened
The program was announced on this date; no savings have been reported yet.
08What could go wrong
What could go wrong for Nike?
- Governance
Class A holders elect about 75% of Nike's directors
Both classes carry one vote per share, but they elect directors separately. Class A is 18.9% of shares, mainly held by Swoosh, LLC, and elected 8 of 11 directors in 2026. Class B, the only traded class, elects the rest. Nike's 10-K lists this among provisions that could discourage a takeover. It also says a sale of Swoosh's shares could affect the market price.
Watch Class A and Class B share counts on each 10-Q cover, and director votes in the annual meeting 8-K.
- Regulation
Tariffs: FY2026 profit includes a one-time recovery
A one-time $986 million pre-tax benefit followed a Feb 20, 2026 US Supreme Court ruling on IEEPA tariffs. It lifted reported FY2026 diluted EPS to $2.10; Nike said $1.58 without it. Nike's call assumed a 10% incremental tariff rate through July 2026, then 15%. Nike has stated no dollar cost for FY2027.
Watch Gross margin and any tariff cost figure in each release.
- Demand
Falling revenue in Greater China
Greater China revenue fell 22.0% in Q1 FY2027 to $1.18 billion. Nike's 10-Q cites declining store traffic, heavy promotions and high marketplace inventory, and expects its actions there to extend beyond FY2027.
Watch Greater China revenue and EBIT in each quarterly release.
- Competition
Weak spots in products and direct sales
Nike's 10-K calls its industry highly competitive and names 11 rivals. Management said Sportswear, just under half of Q1 FY2027 revenue, fell low double digits. Nike Direct revenue fell 8% in Q1 FY2027 and Converse fell 28%. Nike's 10-Q cites higher discounting in Sportswear and Jordan.
Watch Nike Direct, Converse and gross margin in each release; Sportswear comments on each call.
- Concentration
Few footwear manufacturers and countries
Four contract manufacturers each made over 10% of Nike Brand footwear in FY2026, about 60% together. Factories in Vietnam made 52%, Indonesia 27% and China 16%.
Watch Factory shares by country in each 10-K, Item 1.
- Concentration
Larger share of US sales from three customers
No customer reached 10% of revenue in FY2026. But Nike's three largest US customers were 29% of US sales, up from 22% in FY2022.
Watch Customer shares in each 10-K, Item 1.
- Cash and liquidity
Dividends compared with cash flow
In the 12 months to Aug 31, 2026, free cash flowCash from operations minus spending on buildings and equipment. Learn more was $2.1 billion and dividends paid were $2.4 billion. In Q1 FY2027, cash from operations was $135 million and dividends paid were $610 million. Q1 FY2027 cash from operations includes receipt of the tariff receivable and the related tax payment. Nike has $2.0 billion of notes due within a year.
Watch Cash from operations, dividends paid and cash balances in each 10-Q.
- Legal
Belgian customs claims
Belgian customs authorities have claimed alleged underpaid duties on imports beginning in fiscal 2018. Nike disputes the claims and has appealed. It says it cannot estimate the loss and that an adverse result could be material.
Watch The Belgian customs note in each 10-Q and 10-K.
09Both sides
What do supporters and critics point to?
What supporters point to
- Nike Brand wholesale revenue rose 6% to $27.5 billion in FY2026.
- Management said Nike Performance reached $16 billion in FY2026 and grew high single digits in Q1 FY2027.
- Gross margin rose 60 basis points to 42.8% in Q1 FY2027, and North America revenue rose 2%.
- At Aug 31, 2026, cash and short-term investments exceeded debt by $475 million.
- Nike said on Oct 1, 2026 that it expects Pace to deliver about $2.5 billion of cumulative savings through FY2031.
What critics point to
- Revenue fell 9.8% in FY2025, and Nike said on Oct 1, 2026 that it expects FY2027 revenue to fall by high single digits.
- Net income per $100 of revenue fell from $12.9 in FY2021 to $6.7 in FY2026, including the tariff benefit.
- In Q1 FY2027, Greater China revenue fell 22.0% and Converse revenue fell 28%.
- In the 12 months to Aug 31, 2026, free cash flow was $2.1 billion and dividends paid were $2.4 billion. Q1 FY2027 cash from operations includes receipt of the tariff receivable and the related tax payment.
- Class A is 18.9% of Nike's shares and elected 8 of 11 directors in 2026.
10What to watch next
What should you watch next at Nike?
Next event
Q2 FY2027 results
Date not announced yet.
Investor Day, Nov 16 and 17, 2026
CFO David Denton said on Oct 1, 2026 that Nike will share a financial framework for the next five years there, and return to the dividend question.
Revenue against the Oct 1, 2026 outlook
Nike said it expects FY2027 revenue to fall by high single digits. Q1 FY2027 revenue fell 4.3%, with Greater China down 22.0%.
Cash from operations and dividends
In Q1 FY2027, cash from operations was $135 million and dividends paid were $610 million. Q1 FY2027 cash from operations includes receipt of the tariff receivable and the related tax payment. Nike's next 10-Q shows the following quarter.
11Key dates
What are the key dates for Nike?
| Event | Date | Source |
|---|---|---|
| $1.0 billion of 2.38% notes maturesNo filing through Oct 30, 2026 shows the repayment. | Form 10-K for fiscal 2026 (year ended May 31, 2026) | |
| Nike's Investor DayAnnounced for Nov 16 and 17, 2026, on the Jun 30, 2026 earnings call. | Q4 fiscal 2026 earnings call transcript, Jun 30, 2026 | |
| $1.0 billion of 2.75% notes matures | Form 10-K for fiscal 2026 (year ended May 31, 2026) | |
| Nike plans to organize into three geographies in FY2028Americas, APGC (Asia Pacific and Greater China) and EMEA. The Oct 2, 2026 10-Q does not say how this will change reported segments. | Not yet stated | Form 10-Q for the quarter ended Aug 31, 2026 (Q1 fiscal 2027) |
Learn: IPO lock-up agreements: what they are and when they end
12Key facts
Key facts about Nike
- What does Nike do?
- Nike designs, markets and sells athletic footwear, apparel and equipment under the Nike, Jordan and Converse names. Nike's revenue was $46.4 billion in FY2026, the year ended May 31, 2026. Independent contractors make nearly all of its products.
- What is Nike's business model, and how does Nike make money?
- Nike makes money by selling products it designs and has made by outside factories. In FY2026, Nike earned 60.5% of revenue from wholesale accounts and 39.2% from shoppers buying directly in its stores and online.
- Who are Nike's customers?
- Nike's customers are footwear, sporting goods and department stores, distributors, and shoppers buying directly. No customer reached 10% of Nike's FY2026 revenue. Nike's three largest US customers were 29% of its FY2026 US sales.
- Is Nike profitable?
- Yes. Nike's net income was $3.1 billion in FY2026, down from $6.0 billion in FY2022, and it includes a one-time $986 million pre-tax tariff benefit. Nike reports no operating income line; its FY2026 income before taxes, which includes $103 million of net interest and other income, was $3.9 billion. Diluted EPS was $2.10, or $1.58 without the benefit by Nike's own count.
- What is Nike's revenue by segment?
- In FY2026, Nike's revenue came from North America ($20.5 billion, 44.2%), EMEA ($12.6 billion, 27.1%), Asia Pacific and Latin America ($6.2 billion, 13.5%), Greater China ($5.8 billion, 12.6%) and Converse ($1.2 billion, 2.5%).
- Who owns Nike?
- Swoosh, LLC, formed by Nike co-founder Philip Knight, held 78.8% of Nike's Class A shares in the 2026 proxy. Class A was 18.9% of Nike's shares on Sep 28, 2026, and its holders elect about 75% of directors. Vanguard Capital Management held 7.50% of Nike's Class B shares on Mar 31, 2026.
- How much does Nike make from footwear?
- Nike Brand footwear revenue was $29.5 billion in FY2026, 65.3% of Nike Brand revenue of $45.2 billion. It was $29.5 billion in FY2025 as well.
- How much does Nike make from apparel?
- Nike Brand apparel revenue was $13.4 billion in FY2026, up from $13.0 billion in FY2025, and 29.7% of Nike Brand revenue.
- How much does Nike make from sports equipment?
- Nike Brand equipment revenue, such as bags, socks and sport balls, was $2.2 billion in FY2026, 4.9% of Nike Brand revenue, and also $2.2 billion in FY2025.
- How big are Jordan and Converse within Nike?
- Jordan Brand sales were $7.0 billion in FY2026, down from $8.7 billion in FY2024, and are counted inside Nike Brand revenue. Converse, reported as its own segment, had revenue of $1.2 billion in FY2026, down from $1.7 billion in FY2025.
Go deeper
More detail from the same filings. Open any section.
13What it sells
13What it sells
What does Nike sell?
Footwear ($29.5B in FY2026)
Athletic shoes designed mainly for sport, though many are worn casually. This is Nike Brand revenue, including Jordan.
Apparel ($13.4B)
Sports clothing, including apparel with licensed college and professional team logos. Nike Brand revenue, including Jordan.
Equipment ($2.2B)
Bags, socks, sport balls, eyewear, gloves, protective gear and similar items sold under the Nike name.
Jordan Brand ($7.0B, inside the lines above)
Sport and casual shoes, clothing and accessories using the Jumpman trademark. Jordan's sales are already counted in the Nike Brand figures.
Converse ($1.2B)
Casual sneakers, clothing and accessories under the Converse and Chuck Taylor names, reported as its own segment.
What it does
- Does: Designs, markets and sells athletic footwear, apparel and equipment
- Does: Sells through other retailers (wholesale) and directly in its own stores and online
- Does: Licenses its trademarks to other companies for some products
- Does: Pays athletes, teams and leagues under endorsement contracts
What it does not do
- Does not: Does not make nearly all of its own products: independent contractors do, nearly all outside the US
- Does not: Does not report an operating income line: its income statement goes from gross profit and selling and administrative expense to income before taxes
- Does not: Does not report Performance or Sportswear revenue in its filings: those figures come only from earnings calls
14How the money flows
14How the money flows · FY2026
How does money flow through Nike?
Money in
- Sales to wholesale accounts$28.1B
- Sales directly to shoppers$18.2B
- Licensing and other$143M
- Net interest income and other income$103M
The company
Nike
$46.5B came in
Money out
- Cost of sales (after a $986M pre-tax tariff benefit)$26.5B
- Demand creation (advertising, athlete and team deals)$4.8B
- Operating overhead (wages, rent, technology, other)$11.4B
- Income tax$792M
- Net income$3.1B
- Retailers, distributors and shoppers paid Nike $46.4 billion in FY2026.
- Cost of sales took $26.5 billion, after a one-time $986 million pre-tax tariff benefit. That left $19.9 billion of gross profit.
- Advertising and athlete deals took $4.8 billion, and wages, rent and other running costs took $11.4 billion.
- Net interest and other income added $103 million, so income before taxes was $3.9 billion. Nike reports no operating income line.
- After $0.8 billion of income tax, $3.1 billion was left as net income.
15What it needs to run
15What it needs to run
What does Nike need to run?
Outside factories
At May 31, 2026, contract manufacturers ran 95 footwear factories in 11 countries and 321 apparel factories in 34 countries.
Athletes, teams and advertising
Demand creation was $4.75 billion in FY2026. Endorsement contract obligations were about $15.5 billion at May 31, 2026.
Stores and warehouses
Nike and Converse ran 347 stores in the US and 641 outside it at May 31, 2026, plus 8 US and 65 non-US distribution centers.
Trademarks
The Nike and Swoosh trademarks are registered in over 190 jurisdictions.
People
About 73,000 employees at May 31, 2026, down from 77,800 a year earlier.
16Where it sells
16Where it sells · FY2026
Where does Nike sell?
- United States44%
- Outside the US56%
17Competitors and what protects it
17Competitors and what protects it
Who does Nike compete with?
adidas
Named in Nike's FY2026 10-K among companies it competes with worldwide in athletic and leisure footwear, apparel and equipment.
Anta
Named in Nike's FY2026 10-K among companies it competes with worldwide in athletic and leisure footwear, apparel and equipment.
ASICS
Named in Nike's FY2026 10-K among companies it competes with worldwide in athletic and leisure footwear, apparel and equipment.
Deckers
Named in Nike's FY2026 10-K among companies it competes with worldwide in athletic and leisure footwear, apparel and equipment.
Li Ning
Named in Nike's FY2026 10-K among companies it competes with worldwide in athletic and leisure footwear, apparel and equipment.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Brand and trademarks4 of 5
Nike's trademarks are registered in over 190 jurisdictions, and it spent $4.75 billion on demand creation in FY2026.
- Size of sales4 of 5
Nike's FY2026 revenue was $46.4 billion, and its digital commerce reached over 40 countries. The largest-seller claim is Nike's own statement.
- Athlete and team contracts3 of 5
Endorsement contract obligations were about $15.5 billion at May 31, 2026, about $1.7 billion of it due within 12 months.
- Outside factory network3 of 5
Contract manufacturers ran 95 footwear and 321 apparel factories at May 31, 2026, but four manufacturers made about 60% of Nike Brand footwear.
Weak spot
Greater China
Greater China revenue fell from $8.3 billion in FY2021 to $5.8 billion in FY2026, and its EBIT margin fell from 39.1% to 21.9%. Revenue fell a further 22.0% in Q1 FY2027.
18Where growth could come from
18Where growth could come from
Where could Nike's growth come from?
Nike said on Oct 1, 2026 that it expects FY2027 revenue to fall by high single digits, EBIT to fall by a greater percentage and the tax rate to be in the mid-20% range. It gave adjusted diluted EPS of $1.15 to $1.35, excluding about $0.15 of Pace charges, and no GAAP EPS range; FY2026 diluted EPS was $2.10.
Nike Performance
Working$16B in FY2026 (earnings call)
Management said on Oct 1, 2026 that Performance products grew mid-single digits in FY2026 to $16 billion, then high single digits in Q1 FY2027. Filings do not report this figure.
Status: Working, on track against what the company said.
Nike Sportswear
BehindDown low double digits, Q1 FY2027
Management said on Oct 1, 2026 that Sportswear was just under half of Q1 FY2027 revenue. It said it cut Dunk revenue by nearly 50% as planned.
Status: Behind, behind the company's own plan.
Jordan Brand
Behind$7.0B in FY2026
Jordan sales were $7.03 billion in FY2026, down from $8.70 billion in FY2024. Management said Jordan was 13% of Q1 FY2027 revenue, with revenue falling by mid-teens.
Status: Behind, behind the company's own plan.
Wholesale
Mixed+6% in FY2026, −1% in Q1 FY2027
Nike Brand wholesale revenue rose 6% to $27.5 billion in FY2026, then fell 1% to $6.8 billion in Q1 FY2027 as Greater China declined.
Status: Mixed, partly on track.
Nike Direct
Behind−6% in FY2026, −8% in Q1 FY2027
Nike Direct revenue fell 6% to $17.7 billion in FY2026. Nike Brand Digital was $8.6 billion, down from $9.6 billion, and Nike stores were $9.1 billion.
Status: Behind, behind the company's own plan.
Pace cost program
NewAbout $2.5B of savings through FY2031 (company estimate)
Nike announced Pace on Oct 1, 2026. It expects about $1.0 billion of pre-tax charges, on top of about $0.3 billion in FY2026, and a new campus in India. The savings figure is before charges and any reinvestment.
Status: New, recently announced.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
19The company's own measures (non-GAAP)
19The company's own measures · FY2026 and recent quarters
What do Nike's own measures show?
Official (GAAP): Diluted EPS, FY2026
$2.10
Company's own measure: Diluted EPS without the tariff benefit, FY2026
$1.58
Nike's statement on its Jun 30, 2026 call. It leaves out the one-time $986 million pre-tax tariff benefit in cost of sales.
Official (GAAP): Gross margin, FY2026
42.9%
Company's own measure: Gross margin without the tariff benefit, FY2026
40.8%
Nike's statement: the benefit added 210 basis points (2.1 percentage points).
Official (GAAP): Diluted EPS, Q4 FY2026
$0.72
Company's own measure: Diluted EPS without the tariff benefit, Q4 FY2026
$0.20
Nike's statement. Nike recorded the whole benefit in this quarter.
Official (GAAP): Net income, FY2026
$3.1B
Company's own measure: EBIT, FY2026
$3.9B
Nike's EBIT is net income plus net interest and income taxes, so it includes other income. It is not an operating income line, which Nike does not report.
Official (GAAP): Net income as a share of revenue, FY2026
6.7%
Company's own measure: EBIT margin, FY2026
8.3%
EBIT divided by revenue.
Official (GAAP): Net income as a share of revenue, FY2026
6.7%
Company's own measure: Return on invested capital, FY2026
18.7%
Nike's measure: earnings before interest and after taxes of $3,068 million ÷ average invested capital of $16,426 million, leases included. FY2025 was 20.2%.
Official (GAAP): Reported revenue growth, FY2026 (Cityfort calculation from FY2026 10-K)
0.2%
Company's own measure: Revenue growth excluding currency moves, FY2026
−2.0%
Nike removes the effect of exchange-rate changes.
Official (GAAP): Reported revenue growth, Q1 FY2027 (Cityfort calculation from Q1 FY2027 earnings release)
−4.3%
Company's own measure: Revenue growth excluding currency moves, Q1 FY2027
−5.0%
Nike removes the effect of exchange-rate changes.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Sources
Q4 fiscal 2026 earnings call transcript, Jun 30, 2026; Form 10-K for fiscal 2026 (year ended May 31, 2026); Q4 and full-year fiscal 2026 earnings release (Form 8-K, Ex. 99.1) and 1 more
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out
20Financial strength and debt
20Financial strength · Aug 31, 2026
How much debt does Nike have?
- Total debt$7.9B
- Cash and investments$8.4B
- Net cash (cash minus debt)$475M
- Net worth (shareholders' money)$15.2B
- Debt to equity
- 0.52×
- $ of debt for every $1 of shareholders' money
- Debt is long-term notes at book value, including $2.0 billion due within a year. Net figures are a Cityfort calculation from Q1 FY2027 10-Q.
- Operating lease liabilities are separate and not counted as debt here: $3,179 million at Aug 31, 2026.
- $1.0 billion of 2.38% notes matures on Nov 1, 2026, and $1.0 billion of 2.75% notes on Mar 27, 2027. No filing through Oct 30, 2026 shows the first repayment.
- Commitments at May 31, 2026 included about $15.5 billion of endorsement contracts and about $4.9 billion of product purchases.
- Credit lines at May 31, 2026: $1 billion to Mar 5, 2027 and $2 billion to Mar 7, 2030. Nike had no borrowings under its $3 billion commercial paper program on that date.
21Who owns it
21Who owns it · ownership as of Jun 30, 2026
Who owns Nike?
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Sources
Form 10-Q for the quarter ended Aug 31, 2026 (Q1 fiscal 2027); Proxy statement for the 2026 annual meeting (DEF 14A); Form 10-K for fiscal 2026 (year ended May 31, 2026) and 5 more
Learn: Dual-class shares: when votes and ownership don't match · How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes
22What it does with profit
22What it does with profit
What does Nike do with its profit?
Dividend per share
$1.63FY2026
Dividend paid for each share, by financial year.
$ per share
See the numbers
Buyback · May 31, 2021
Shares repurchased during FY2021 (cash flow statement).
$608M
Buyback · May 31, 2022
Shares repurchased during FY2022 (cash flow statement).
$4.0B
Buyback · May 31, 2023
Shares repurchased during FY2023 (cash flow statement).
$5.5B
Buyback · May 31, 2024
Shares repurchased during FY2024 (cash flow statement).
$4.3B
Buyback · May 31, 2025
Shares repurchased during FY2025 (cash flow statement).
$3.0B
Buyback · May 31, 2026
Cash flow statement line for FY2026. Program purchases were $122.4 million, and the filing does not reconcile the two. Buybacks paused during Q1 FY2026.
$146M
23Governance signals
23Governance signals
What do Nike's governance filings show?
- Auditor
- PricewaterhouseCoopers LLP, since 1974
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- In FY2026 Nike paid Philip Knight about $221,000 as Chairman Emeritus, and about $146,000 and $175,000 to Mark Parker's son and sister. It also paid about $125,000 to a former named executive's son-in-law.
- Credit rating
- S&P Global Ratings and Moody's Ratings (as stated in Nike's FY2026 10-K) A+ (S&P) / A2 (Moody's) (outlook not stated in the 10-K), Jul 15, 2026
A credit rating describes the company's ability to repay debt. It is not a rating of the share.
Flags to know about
other · Sep 8, 2026
Class A elects most of the board
Class A holders elected 8 of the 11 directors at the Sep 8, 2026 meeting, with 280.7 million votes for each and none withheld. Class B holders elected 3. One Class B nominee received 496.8 million votes for and 310.5 million withheld.
other · Sep 4, 2026
CFO also acts as controller
Nike's Chief Accounting Officer and Corporate Controller told it on Aug 4, 2026 that she would resign, and Nike said this was not due to any disagreement. From Sep 4, 2026 the CFO is also Interim Corporate Controller and principal accounting officer, until a successor is appointed.
regulatory
Belgian customs claims
Belgian customs authorities have claimed alleged underpaid duties on products imported beginning in fiscal 2018. Nike disputes the claims, has appealed and issued bank guarantees, and says it cannot estimate the range of loss.
shares as collateral
Rule on using Nike stock as loan collateral
Directors, executive officers and their households need pre-approval from the Chairman or CEO to use Nike stock as loan collateral. Hedging and short sales are prohibited. The proxy's ownership footnotes disclose no shares used this way.
disclosure
Some product figures appear only on calls
Performance and Sportswear revenue appear on earnings calls, not in filings. Nike Brand Digital revenue is given in rounded billions.
24What the market paid
24What the market paid · price as of Oct 30, 2026
What did the market pay for Nike on Oct 30, 2026?
Price as of Oct 30, 2026 (shown for education; prices change daily).
Price as of Oct 30, 2026: Nike's Class B shares, listed on the NYSE, closed at $38.67, as shown in Nasdaq's public historical price table for NKE. Times 1,485.3 million Class A and B shares (Sep 28, 2026), that is a market value of about $57.4 billion (Cityfort calculation from the Oct 30, 2026 closing price and the Q1 FY2027 10-Q cover). P/E is price ÷ earnings per share: 18.6 on diluted EPS of $2.08 for the 12 months to Aug 31, 2026, which includes $0.52 of tariff benefit. Dividend yield is $1.64 a year ÷ $38.67 = 4.2%, as of the same date.
- Share price
- $38.67
- Market value (market cap)
- $57.4B
- P/E
- 18.6×
Source: NKE historical daily prices, October 2026 (close of Oct 30, 2026); Form 10-Q for the quarter ended Aug 31, 2026 (Q1 fiscal 2027); Q1 fiscal 2027 earnings release (Form 8-K, Ex. 99.1) and 4 more
25How it got here
25How it got here
How did Nike get here?
1967
Milestone
Incorporated in Oregon
NIKE, Inc. was incorporated in Oregon in 1967.
2015
Milestone
Swoosh, LLC formed
Co-founder Philip Knight formed Swoosh, LLC to hold most of his Class A shares. The 2026 proxy shows it with 78.8% of Class A.
2020
Milestone
Parker moves to Executive Chairman
Mark Parker became Executive Chairman in 2020 after serving as CEO.
2022
Milestone
$18 billion buyback approved
The board approved an $18 billion buyback in June 2022. Nike had used $12.1 billion by May 31, 2026, at an average of $97.57 a share.
2024
Crisis
Restructuring charges
Nike recorded $443 million of restructuring charges in FY2024, with a net reduction in staff.
2024
Business-model change
Elliott Hill returns as CEO
Hill became CEO on Oct 14, 2024, and John Donahoe retired. Nike began its Win Now actions in December 2024.
2025
Crisis
Revenue and rating fall
FY2025 revenue fell 9.8% to $46.3 billion and net income fell to $3.2 billion. S&P and Moody's downgraded Nike's debt in 2025, and Nike paused buybacks in Q1 FY2026.
2026
Milestone
Tariff recovery
After a Feb 20, 2026 US Supreme Court ruling on IEEPA tariffs, Nike recorded a $986 million pre-tax benefit in Q4 FY2026.
2026
Milestone
New CFO
Nike named David Denton CFO on Jun 23, 2026, effective August 2026. Matthew Friend left on Sep 4, 2026.
2026
Business-model change
Pace announced
On Oct 1, 2026 Nike announced Pace, a multi-year program that includes a March 2026 cost plan, and plans three geographies in FY2028.
26Sources and changes
Where every number on this page comes from
Sources (36 documents)
- S1Form 10-K for fiscal 2026 (year ended May 31, 2026) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 15, 2026
- S2Form 10-K for fiscal 2025 · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 17, 2025
- S3Form 10-K for fiscal 2024 · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 25, 2024
- S4Form 10-K for fiscal 2023 · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 20, 2023
- S5Form 10-K for fiscal 2022 · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 21, 2022
- S6Form 10-Q for the quarter ended Aug 31, 2026 (Q1 fiscal 2027) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 2, 2026
- S13Q1 fiscal 2027 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 1, 2026
- S14Q4 and full-year fiscal 2026 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 30, 2026
- S15Q3 fiscal 2026 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 31, 2026
- S16Q2 fiscal 2026 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Dec 18, 2025
- S17Q1 fiscal 2026 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 30, 2025
- S18Q4 and full-year fiscal 2025 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 26, 2025
- S19Q3 fiscal 2025 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 20, 2025
- S20Q2 fiscal 2025 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Dec 19, 2024
- S21Q1 fiscal 2025 earnings release (Form 8-K, Ex. 99.1) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 1, 2024
- S22Proxy statement for the 2026 annual meeting (DEF 14A) · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 15, 2026
- S23Form 8-K: Pace program (Item 2.05), Oct 1, 2026 · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 1, 2026
- S24Form 8-K: Alexandre Arnault appointed to the board · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 16, 2026
- S25Form 8-K: 2026 annual meeting vote results · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 10, 2026
- S26Form 8-K: Chief Accounting Officer resignation; CFO as interim controller · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 10, 2026
- S27Form 8-K: David Denton appointed CFO; Matthew Friend transition · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 23, 2026
- S29Form 8-K: 364-day credit facility, Mar 6, 2026 · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 9, 2026
- S31Form 8-K: Chief Operating Officer appointed; Chief Commercial Officer role eliminated · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Dec 2, 2025
- S34Form 8-K, Ex. 99.1: Elliott Hill named President and CEO · NIKE, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 19, 2024
- S35Schedule 13G: Vanguard Portfolio Management (event Sep 30, 2026) · Vanguard Portfolio Management (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2026
- S36Schedule 13G: Capital World Investors (event Jun 30, 2026) · Capital World Investors (SEC EDGAR) · Tier 1: company or exchange filing · Aug 12, 2026
- S37Schedule 13G: State Street Corporation (event Mar 31, 2026) · State Street Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 12, 2026
- S38Schedule 13G: Vanguard Capital Management (event Mar 31, 2026) · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
- S39Schedule 13G/A, Amendment No. 12: The Vanguard Group (event Mar 13, 2026) · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S40Q1 fiscal 2027 earnings call transcript, Oct 1, 2026 · NIKE, Inc. (company IR) · Tier 1: company or exchange filing · Oct 1, 2026
- S41Q4 fiscal 2026 earnings call transcript, Jun 30, 2026 · NIKE, Inc. (company IR) · Tier 1: company or exchange filing · Jun 30, 2026
- S42Q3 fiscal 2026 earnings call transcript, Mar 31, 2026 · NIKE, Inc. (company IR) · Tier 1: company or exchange filing · Mar 31, 2026
- S43Q2 fiscal 2026 earnings call transcript, Dec 18, 2025 · NIKE, Inc. (company IR) · Tier 1: company or exchange filing · Dec 18, 2025
- S44Q1 fiscal 2026 earnings call transcript, Sep 30, 2025 · NIKE, Inc. (company IR) · Tier 1: company or exchange filing · Sep 30, 2025
- S45NKE historical daily prices, October 2026 (close of Oct 30, 2026) · Nasdaq, Inc. · Tier 1: company or exchange filing · Oct 30, 2026
- S48Form 8-K, Item 5.02: CEO transition (John Ternus CEO, Tim Cook Executive Chair) · Apple Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 20, 2026
Changes to this page (v2 · Nov 1, 2026)
- v2 · Nov 1, 2026Standardized calculation labels to name the filing they come from; no figures changed. (editorial update, Q1 FY2027)
- v1 · Nov 1, 2026First version. (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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