Nike’s Q4 Earnings Surpass Predictions Despite a 12% Drop in China Sales
Nike (NYSE: NKE) unveiled its fiscal fourth-quarter 2026 earnings late Tuesday, surpassing expectations on both revenue and profit. However, the results were accompanied by a significant caveat. The athletic giant recorded a net income of $1.1 billion for the quarter, a staggering 407% leap from the $211 million reported in the same period last year. Diluted earnings per share were $0.72, compared to just $0.14 a year ago. Notably, a substantial part of this profit surge — approximately $0.52 per share — was due to an anticipated $986 million refund related to IEEPA tariffs.
Adjusted EPS of $0.20 still outperformed Wall Street’s consensus estimate of $0.13. Revenue for the quarter hit $10.97 billion, slightly surpassing the $10.86 billion analysts had projected. However, this represents a 1% decrease from the same quarter a year ago. Nike’s Greater China market remained a challenge, with sales plummeting 12%. Nike Direct revenues also declined 7% on a reported basis. Full-year net income for fiscal 2026 was $3.11 billion, or $2.10 per diluted share, a 3% decrease year-over-year.
CEO Elliott Hill’s turnaround strategy demonstrated early signs of momentum, especially in North America and Wholesale channels. Despite this, shares fell as much as 8% in after-hours trading before recovering some losses. The company reiterated previous guidance and warned that its recovery will not be “linear.”
Source: CNBC — Nike (NKE) Q4 2026 Earnings