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Nike’s latest reported quarter, fiscal 2027 Q1, showed revenue down 4% year over year to $11.2 billion, while diluted earnings per share were $0.48. Its latest located dividend declaration was $0.41 per share for the quarter. Those figures frame the investment question, but they do not establish whether NKE is suitable or attractively valued: that also depends on future execution, cash generation, risk tolerance and the share price an investor pays.
What did Nike report in its latest quarter?
NIKE, Inc. reported fiscal 2027 first-quarter results on October 1, 2026, for the three months ended August 31. Revenue was $11.2 billion, down 4% from $11.7 billion a year earlier, or 5% on a currency-neutral basis. Net income fell 2% to $712 million, and diluted EPS was $0.48. Nike’s quarterly results describe a mixed business rather than a uniform decline.
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Channels and regions diverged
NIKE Direct revenue fell 8% as reported and 9% currency-neutral, while wholesale revenue declined 1%. Digital sales were down 13%, and Nike-owned store sales fell 5%. By geography, Greater China revenue was $1.18 billion, down 22% reported and 26% currency-neutral; North America grew 2% to $5.127 billion. EMEA declined 5%, and Asia Pacific & Latin America fell 2% reported. These are results for one quarter, not proof that any regional pattern will persist. Converse revenue was $263 million, down 28%.
Margin improved, but discounting remained a factor
Gross margin increased 60 basis points to 42.8%. Nike attributed the improvement mainly to lower warehousing and logistics costs, with favorable currency and lower product costs also contributing. Higher third-party royalties and lower average selling prices related to discounting and channel mix partly offset those gains. Selling and administrative expense declined 3% to $3.9 billion; demand-creation expense rose 5% to $1.3 billion as Nike spent more on brand marketing and key sports events.
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How does the latest quarter compare with the prior year?
For fiscal 2026, Nike reported revenue of $46.4 billion, flat on a reported basis and down 2% currency-neutral. Net income was $3.1 billion and diluted EPS was $2.10, each down 3% year over year. Fiscal 2026 fourth-quarter EPS of $0.72 included a $0.52 benefit associated with the expected recovery of IEEPA tariffs, so that quarter’s reported EPS is not a clean indicator of recurring earnings power. Historical results and risk disclosures are in Nike’s FY2026 Form 10-K.
What is Nike’s dividend?
Nike declared a quarterly dividend of $0.41 per share on August 6, 2026, payable October 1 to shareholders of record September 1. This is the latest declaration identified here, not a guarantee of future payments; confirm the company’s investor-relations announcements for any later declaration. Nike’s dividend announcement documents the dated payment. Dividend yield cannot be stated meaningfully without a share price and its date, because yield changes when the stock price changes.
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Put distributions beside cash generation
In fiscal 2026, Nike paid $2.407 billion in dividends and declared $2.430 billion of common and preferred dividends in its shareholders’ equity statement. It generated $2.868 billion in operating cash flow and spent $684 million on property, plant and equipment additions. Cash dividends paid and dividends declared are distinct accounting measures. One year’s figures also cannot establish future dividend coverage; an investor assessing durability would track operating cash flow, capital expenditure, working capital, debt obligations and distributions over multiple periods.
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What is Nike’s outlook, and what is the Pace plan?
In its October 1, 2026 release, Nike forecast a high-single-digit percentage decline in fiscal 2027 revenue and an effective tax rate in the mid-20% range. It gave adjusted diluted EPS guidance of $1.15 to $1.35, excluding approximately $0.15 of Pace restructuring expenses. Adjusted EPS is a non-GAAP forecast, not reported GAAP earnings.
Nike estimates that Pace will produce approximately $2.5 billion in cumulative savings through fiscal 2031 and approximately $1.0 billion in pre-tax charges through that year, in addition to about $0.3 billion of fiscal 2026 severance costs. These are management estimates based on assumptions; Nike says actual savings, charges and cash spending may differ materially.
The plan includes modernizing the global supply chain, establishing a campus in India to support enterprise capabilities, moving to three geographies and further streamlining the organization. Nike has also described repositioning work for NIKE Sportswear, Jordan Brand and Greater China. These initiatives may matter to a turnaround case, but their value depends on delivery, timing and whether they improve demand and profitability.
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What are the main risks of investing in Nike?
- Demand, inventory and product preferences: Nike says weaker discretionary spending can reduce demand, raise inventories, prompt cancellations and increase discounting, putting gross margins under pressure. It must also anticipate changes in sports and style preferences and develop products customers want.
- Execution and competition: Footwear and apparel are highly competitive markets. Innovation, product quality, brand connection, sourcing and retail execution matter. The latest declines in Greater China, Converse and NIKE Direct make the success of marketplace repositioning especially relevant to monitor, without proving that the declines will continue.
- Geography, currency, tariffs and trade: Foreign-exchange movements, tariffs, trade rules, geopolitical conditions and tax regulation can affect costs, consumer behavior, revenue and profit. Nike has warned that external volatility may materially affect future revenue and profitability.
- Concentrated supply chain: Nike relies on a concentrated group of contract manufacturers for all footwear it sells. Supplier disruption or changes in trade terms could affect availability, costs and results.
- Digital systems and cybersecurity: The company depends on information technology for supply chains, inventory, retail, digital commerce and consumer engagement. Outages or cyberattacks could disrupt operations and damage consumer relationships.
- Brand and reputation: Product quality, marketing, supplier conduct, public claims and social or political issues can affect Nike’s brand image, including when claims are disputed.
- Turnaround delivery: Pace savings and charges are estimates, not guaranteed outcomes. Delays, costs or weaker-than-expected operating benefits could undermine the plan’s intended contribution.
Is Nike stock a good investment?
The reported results provide inputs for analysis, not a buy-or-sell answer. Nike remains a large operating business with meaningful revenue and a declared dividend, but its latest quarter included falling total sales, a sharp Greater China decline and weakness in Direct and Converse. Margin rose, though some of the improvement came from lower logistics costs while discounting and channel mix weighed in the other direction. Management’s outlook anticipates further revenue decline, and its restructuring benefits remain uncertain.
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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →A valuation-based decision requires a current share price and a consistent way to assess expected earnings, cash flow, dividend durability and risk. No current price, valuation multiple or consensus estimate is established here, so the figures above cannot show whether the stock is cheap or expensive. Compare Nike with alternatives using the same periods and measures—revenue growth, channel and regional mix, gross margin, cash generation after capital expenditure, dividend funding and execution risk—rather than relying on brand familiarity or a single quarter.
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What should investors monitor next?
- Whether revenue declines moderate or deepen, particularly in Greater China, NIKE Direct and Converse.
- Whether gross-margin movement reflects repeatable operating gains or factors such as logistics costs, discounting, currency and channel mix.
- Operating cash flow, capital spending, working capital and dividend payments across several reporting periods.
- Progress against Nike’s fiscal 2027 guidance and whether Pace savings arrive alongside the expected charges and cash costs.
- New dividend declarations and the share price on the date used for any yield calculation.
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