🏃 What the Company Does
NIKE, Inc. is the world’s largest athletic footwear and apparel company, operating in more than 190 countries through the NIKE, Jordan, and Converse brands. The company designs, markets, and sells footwear, apparel, equipment, and digital services while relying on independent manufacturing partners around the world. Management continued implementing its Win Now strategy and Sport Offense operating model during fiscal 2026 to strengthen innovation, improve marketplace execution, and support long-term growth.
📊 Financial Highlights
- Revenue remained essentially flat at $46.4 billion in fiscal 2026 after declining in fiscal 2025.
- Gross profit and operating income improved modestly, suggesting early operational stabilization.
- Net income declined to $3.1 billion, while diluted EPS decreased to $2.1.
- NIKE maintained a strong balance sheet with more than $7.5 billion in cash and equivalents.
- The company continued generating positive operating cash flow, although cash generation remained below historical levels.
⚠️ Key Risks
- Maintaining the strength of the NIKE, Jordan, and Converse brands in a highly competitive athletic market.
- Responding to changing consumer preferences through continuous product innovation.
- Managing a global supply chain that depends on independent manufacturers and logistics partners.
- Balancing wholesale relationships with direct-to-consumer and digital sales channels.
- Protecting intellectual property, maintaining cybersecurity, and complying with global regulations.
📋 MD&A
Management described fiscal 2026 as a year of continued execution focused on strengthening the company’s long-term competitive position. Revenue stabilized, gross margin improved modestly, and liquidity remained strong. At the same time, profitability stayed below historical levels as NIKE continued investing in product innovation, brand marketing, digital capabilities, and marketplace improvements while reducing share repurchases.
✅ Takeaway
According to NIKE’s fiscal 2026 Form 10-K, the company remained financially strong despite lower profitability than previous years. Management focused on improving marketplace health, strengthening consumer relationships, and investing in future growth while maintaining solid liquidity and continuing to return capital through dividends.
📊 Income Statement Summary
| (unit: $m, EPS in $) | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|
| Revenue | 51,362 | 46,309 | 46,398 |
| Cost of Goods Sold | 28,475 | 26,519 | 26,487 |
| Gross Profit | 22,887 | 19,790 | 19,911 |
| SG&A | 16,576 | 16,088 | 16,114 |
| Operating Income | 6,311 | 3,702 | 3,797 |
| Non-Operating Income/Expense | (228) | (76) | (53) |
| Interest Income/Expense | (161) | (107) | (50) |
| Income Before Tax | 6,700 | 3,885 | 3,900 |
| Income Tax | 1,000 | 666 | 792 |
| Net Income | 5,700 | 3,219 | 3,108 |
| EPS | 3.7 | 2.2 | 2.1 |
📈 Key Financial Ratios
| Ratio | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|
| ROE (%) | 40.1% | 23.3% | 22.2% |
| ROA (%) | 15.1% | 8.6% | 8.4% |
| ROTC (%) | 28.1% | 17.5% | 18.4% |
| ROIC (%) | 21.7% | 13.8% | 14.4% |
| Gross Margin (%) | 44.6% | 42.7% | 42.9% |
| Operating Margin (%) | 12.3% | 8.0% | 8.2% |
| Pretax Margin (%) | 13.0% | 8.4% | 8.4% |
| Net Margin (%) | 11.1% | 7.0% | 6.7% |
| Debt-to-Equity Ratio (D/E) (%) | 61.7% | 60.3% | 53.4% |
| Net Debt / EBITDA (x) | -0.18x | -0.06x | -0.09x |
| Interest Coverage Ratio (x) | 39.2x | 34.6x | 76.0x |
| Current Ratio (x) | 2.40x | 2.21x | 1.96x |
| Quick Ratio (x) | 1.51x | 1.31x | 1.19x |
| Fixed Asset to Long-term Capital Ratio (%) | 22.4% | 22.9% | 23.0% |
⚠️ This article is for educational purposes only.
👉 NIKE (NKE) FY 2026 10-K Analysis (Filed 2026) | Explained for Beginners
Originally published on Finvincio