10-KPeriod: FY2026

NIKE, Inc. Annual Report, Year Ended May 31, 2026

Filed July 15, 2026For Securities:NKE

Summary

NIKE, Inc. reported flat revenues of $46.4 billion for fiscal year 2026 compared to fiscal year 2025, with a 2% decrease on a currency-neutral basis. This performance was impacted by mixed results across its geographic segments, with North America showing growth driven by wholesale, while Greater China and EMEA experienced revenue declines. The company's strategic initiatives, including product management and marketplace repositioning, are aimed at reigniting brand momentum and driving long-term shareholder value, although these actions have presented short-term revenue and profitability challenges, particularly in Greater China and with the Converse brand. Gross margin saw a slight improvement of 20 basis points to 42.9% in fiscal 2026, aided by lower warehousing and logistics costs and favorable currency hedges. However, the company's NIKE Direct segment experienced a 6% decline in revenue due to reduced traffic. Management is actively managing costs, as evidenced by $385 million in severance costs recognized in fiscal 2026 to support operational efficiency. The company also successfully recovered $986 million in IEEPA tariffs paid, significantly offsetting associated costs.

Key Highlights

  • 1Total revenues remained flat year-over-year at $46.4 billion, with a 2% decrease on a currency-neutral basis, indicating a challenging operational environment.
  • 2NIKE Brand revenues grew slightly to $45.2 billion, a 1% increase reported and a 1% decrease currency-neutral, driven by North America's growth while other regions like Greater China declined.
  • 3NIKE Direct revenues declined 6% (8% currency-neutral) due to reduced traffic, impacting the direct-to-consumer channel performance.
  • 4Gross margin improved by 20 basis points to 42.9% in fiscal 2026, benefiting from lower logistics costs and currency hedges, despite higher product costs.
  • 5The company recognized $385 million in employee severance costs in fiscal 2026 as part of organizational realignments to improve efficiency.
  • 6NIKE successfully recovered $986 million in IEEPA tariffs paid, significantly offsetting prior expenses and positively impacting the cost of sales.
  • 7Converse brand experienced a significant revenue decline of 32% (currency-neutral) as part of a strategic brand and marketplace reset, with negative impacts expected to continue into fiscal 2027.

Frequently Asked Questions

NIKE, Inc. reported total revenues of $46.4 billion for fiscal year 2026, which was flat compared to fiscal year 2025. On a currency-neutral basis, revenues decreased by 2%.

The NIKE Direct segment saw a revenue decline of 6% (8% currency-neutral) due to reduced traffic, while wholesale revenues increased by 6% (4% currency-neutral), primarily driven by higher revenues in North America.

NIKE is undertaking strategic actions, including product management to rebalance its portfolio and marketplace management to reposition NIKE Brand Digital and reinvest in wholesale. These actions, along with a strategic reset for Converse, are expected to reignite brand momentum and drive long-term value, though they have led to short-term revenue and profitability impacts, particularly in Greater China and for Converse.

Yes, NIKE recognized a benefit of $986 million in Cost of Sales for the recovery of IEEPA tariffs paid, following a U.S. Supreme Court ruling. This largely offset the impact of the IEEPA tariffs recognized during fiscal 2026.