Compare the businesses first and the stocks second: line up reporting periods and currencies, assess growth, margins, inventory, cash flow and risks, then compare valuation using market data from the same date. NIKE’s fiscal 2026 results and adidas’s 2025 results offer useful examples, but their different reporting periods and currencies make a raw revenue comparison misleading.
Start by aligning the reporting periods and currencies
NIKE’s fiscal year ended May 31, 2026, while adidas reports calendar-year 2025 results. NIKE reports in U.S. dollars and adidas in euros. Their figures describe different periods and are not directly comparable as though they were measured on the same date. For operating trends, label each period clearly; for absolute amounts, convert currencies using a stated, consistent exchange-rate date or compare ratios that do not require currency conversion.
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For example, NIKE reported fiscal 2026 revenue of $46.398 billion, flat year over year on a reported basis and down 2% currency-neutral. adidas reported 2025 net sales of €24.811 billion. These numbers establish reported scale in each company’s currency, not which company is more valuable or a better investment. NIKE’s fiscal 2026 Form 10-K and adidas’s 2025 Annual Report provide the underlying company reporting.
Compare growth quality, not just headline sales
Look at reported growth alongside currency-neutral growth where available. Exchange-rate movements can make reported sales change differently from underlying sales trends. Then check where growth came from: geography, wholesale, direct-to-consumer channels, or a particular brand or product category. A result concentrated in one region or channel may have a different durability and risk profile from broad-based growth.
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NIKE reports four NIKE Brand geographic segments—North America, EMEA, Greater China and APLA—and distinguishes NIKE Direct from wholesale. NIKE Direct includes owned retail and digital sales; wholesale includes independent distributors, licensees and sales representatives. adidas reported that adidas brand revenues increased 13% currency-neutral in 2025, for a second consecutive year. That company-wide growth figure is useful context, but it does not by itself show how growth was distributed across regions or channels. adidas’s financial review describes its 2025 results.
Examine margins and the reasons behind them
Gross margin shows how much revenue remains after cost of sales; operating profit or operating margin also reflects operating expenses. Net income includes further items such as taxes and financing. Compare more than one measure, and read the companies’ explanations for changes—such as product mix, markdowns, freight, tariffs, marketing or restructuring—rather than treating a margin number as a complete explanation of performance.
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NIKE’s fiscal 2026 gross margin was 42.9%, and net income was $3.108 billion. Its fiscal fourth-quarter gross margin was 49.2%, but NIKE said that figure included an approximately 900-basis-point benefit from expected recovery of IEEPA tariffs. That unusual benefit makes the quarter a poor stand-in for a recurring margin level; use the full-year figure and the company’s discussion of drivers when assessing trend. Fourth-quarter revenue was $11.0 billion, down 1% reported and 4% currency-neutral. These are quarter-specific results released June 30, 2026, not a substitute for the full-year comparison. NIKE’s fiscal 2026 earnings release gives the quarterly and full-year details.
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adidas reported a 51.6% gross margin and €2.056 billion operating profit for 2025. Gross margin is not the same as operating margin, so do not interpret adidas’s higher gross-margin percentage as proof that it is more profitable overall. Compare operating profit and operating margin as well, while noting that reporting definitions, periods and company-specific cost structures can differ. adidas’s financial review covers its annual margin and operating-profit performance.
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Check inventory, working capital and cash generation
Inventory can tie up cash and, if products do not sell as planned, contribute to discounting pressure. Compare inventory levels and year-over-year growth with sales growth, and look for management commentary about inventory quality, markdowns and supply. A single inventory balance is less informative without context about demand and the company’s sales mix.
Working-capital figures require a consistent definition before comparing companies. adidas’s 2026 outlook targets average operating working capital at 22%–23% of sales. This is management guidance, not a reported 2026 result. Use the same calculation and period for NIKE before drawing a comparison. adidas’s 2026 outlook states the target.
Then compare operating cash flow and free cash flow, using the same definition for both companies. Review debt, liquidity, capital spending, dividends and repurchases alongside cash generation. A share-repurchase authorization or a planned capital return is not evidence that a stock is undervalued; it is one use of capital that should be considered with the balance sheet and business needs.
Assess channels, brand execution and business risks
Channel mix affects more than the route a product takes to a customer. Direct sales and wholesale can have different economics and inventory implications, so compare the shares and trends of each channel rather than assuming one company’s sales model maps neatly to another’s. Use each filing’s definitions, since company labels may not cover identical activities.
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For evidence of brand and product execution, track sales trends, margins, inventory and management explanations across several reporting periods. Treat company statements as management’s account, not independent confirmation of consumer preference or market share. NIKE identifies changing consumer preferences and competition as risks; in its Form 10-K, the company says, “Failure to respond in a timely and adequate manner could have a material adverse effect on our sales and profitability.” adidas cites macroeconomic uncertainty, geopolitical tensions, tariffs and commodity-price volatility among risks to its outlook.
Separate adidas guidance from realized results
adidas’s 2026 outlook calls for high-single-digit currency-neutral sales growth and operating profit of around €2.3 billion. These are management expectations, not achieved results. The company says actual outcomes may differ if assumptions or risks change. Treat the outlook as one scenario to test against subsequent reports, not as a fact to place alongside NIKE’s reported fiscal 2026 results. adidas’s outlook discussion explains the forecast and its qualifications.
Compare valuation only after the business analysis
A strong operating business is not automatically an attractive stock at any price. At a common market-data timestamp, compare market capitalization and enterprise value with earnings, free cash flow and sales. Use the same trailing or forward period and consistent definitions for both companies; state whether estimates are reported results or analyst forecasts. A valuation multiple can look different when earnings are temporarily depressed or unusually strong, so connect the price comparison back to the operating drivers and risks.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchThe figures above do not establish which stock is cheaper today: they do not include synchronized share prices, valuation multiples or analyst expectations. Whether either security fits also depends on an investor’s time horizon, risk tolerance and portfolio. A disciplined comparison can identify the business and valuation assumptions an investor would need to believe, but it cannot produce a universal “better investment” answer from these company reports alone.
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