Nike (NKE) reported fiscal Q4 2026 earnings on June 30, 2026, for the quarter ended May 31, 2026. Revenue was $11.0 billion, down 1% on a reported basis and down 4% on a currency-neutral basis, while diluted earnings per share came in at $0.72, a figure that included a $0.52 benefit from the expected recovery of tariffs paid under the International Emergency Economic Powers Act (IEEPA) [1]. Full-year revenue was $46.4 billion, flat as reported, and full-year EPS fell 3% to $2.10 [1]. The stock rose 4.9% to $43.06 on July 1 and closed at $43.21 on July 7, 2026 [2]. This Nike fiscal Q4 2026 earnings recap explains what sat behind the headline numbers and what the report means for the turnaround.
Nike fiscal Q4 2026 earnings: what the company reported
The quarter showed a company that is stabilizing its wholesale relationships while its own direct channels keep shrinking. Wholesale revenue rose 4% to $6.6 billion (up 1% currency neutral), but NIKE Direct fell 7% to $4.1 billion, with digital sales down 12% and owned stores down 7% [1]. Converse revenue dropped 32% to $244 million [1]. On the cost side, selling and administrative expense fell 2% to $4.1 billion, with demand creation spending down 4% to $1.2 billion and operating overhead down 1% to $2.9 billion [1].
| Metric | Fiscal Q4 2026 | Change |
|---|---|---|
| Revenue | $11.0 billion | Down 1% reported, down 4% currency neutral |
| Wholesale revenue | $6.6 billion | Up 4% reported |
| NIKE Direct revenue | $4.1 billion | Down 7% reported |
| Gross margin | 49.2% | Up 890 basis points |
| Diluted EPS | $0.72 | Includes $0.52 tariff recovery benefit |
| Full-year revenue | $46.4 billion | Flat reported, down 2% currency neutral |
| Full-year diluted EPS | $2.10 | Down 3% |
The tariff refund that lifted gross margin
Gross margin jumped 890 basis points to 49.2%, but roughly 900 basis points of that came from the expected recovery of IEEPA tariffs, a benefit of about $986 million [1]. In other words, the underlying gross margin was roughly flat to slightly lower. The effective tax rate fell to 19.6% from 33.6% a year earlier, which also helped the bottom line. Net income for the quarter was $1.1 billion, up 407% from a depressed base, while full-year net income was $3.1 billion, down 3% [1]. Full-year gross margin was 42.9%, up 20 basis points [1]. Investors reading the EPS line should treat the $0.52 as a one-time item; without it, quarterly EPS would have been about $0.20.
Regional results: North America grows, Greater China shrinks
Geography tells the same story as the channel data. North America revenue rose 3% to $4.8 billion, the only region with clear growth. EMEA revenue was $3.0 billion, down 1% reported and down 6% currency neutral. Greater China fell 12% to $1.3 billion, or 17% currency neutral, continuing a multi-quarter decline. Asia Pacific and Latin America revenue was $1.6 billion, up 1% reported and down 1% currency neutral [1]. Inventories ended the year at $7.5 billion, flat year over year, and cash and short-term investments were $9.0 billion [1]. Nike paid $609 million of dividends in the quarter and $2.4 billion for the year, while share repurchases for the full year were only $123 million under the $18 billion four-year program [1]. The release contained no formal fiscal 2027 guidance [1].
How Nike stock reacted to fiscal Q4 2026 earnings
The shares had fallen into the print. According to DataPorium's stock market data, NKE closed at $47.37 on May 28 and at $41.05 on June 30, the day of the release, a drop of about 13% in a month [2]. The stock then rose 4.9% to $43.06 on July 1 on volume of about 80 million shares, reached $44.09 on July 2, and closed at $43.21 on July 7, 2026, about 5% above the pre-report close [2]. The relief reaction suggests expectations had been set low; a revenue decline of 1% and cost cuts were enough to beat a pessimistic setup.
Nike valuation after the report
At $43.21 the stock trades at about 20.6 times fiscal 2026 diluted EPS of $2.10 [1][2]. Excluding the $0.52 tariff benefit, underlying EPS was closer to $1.58, which puts the multiple near 27 times. That is a full price for a company whose revenue has been flat and whose own digital channel is declining at a double-digit rate. The bull case rests on margin recovery: management cited structural improvements for its Sport Offense plan and lower operating costs [1], and a return to even mid-single-digit revenue growth would lift EPS quickly from a depressed base. The bear case is that wholesale growth is partly inventory refilling by retailers and that Greater China has not found a floor.
- Positive: wholesale up 4%, inventories flat, demand creation spending under control [1].
- Negative: NIKE Direct down 7%, digital down 12%, Greater China down 12% [1].
- One-time: about 900 basis points of gross margin and $0.52 of EPS came from tariff recovery [1].
What to watch next
The next data point is the fiscal Q1 2027 report, which DataPorium's markets calendar lists for October 1, 2026 [3]. Investors may consider watching three things: whether NIKE Direct and digital revenue stop declining, whether gross margin holds near 43% without one-time help, and whether Greater China stabilizes. Any fiscal 2027 outlook given on the call would also matter, since the release itself offered none.
Nike's fiscal Q4 2026 quarter was better than feared but not yet good, and most of the earnings upside came from a tariff refund rather than from selling more shoes.
Key takeaways
- Fiscal Q4 2026 revenue was $11.0 billion, down 1%, and full-year revenue was $46.4 billion, flat [1].
- Diluted EPS of $0.72 included a $0.52 benefit from expected IEEPA tariff recovery; full-year EPS was $2.10 [1].
- Wholesale grew 4% while NIKE Direct fell 7% and Greater China fell 12% [1].
- NKE rose 4.9% on July 1 and closed at $43.21 on July 7, 2026, about 20.6 times fiscal 2026 EPS [2].
- The fiscal Q1 2027 report is scheduled for October 1, 2026 [3].
Frequently asked questions
What were Nike's fiscal Q4 2026 earnings?
Nike reported revenue of $11.0 billion, down 1%, and diluted EPS of $0.72 for the quarter ended May 31, 2026; the EPS figure included a $0.52 benefit from expected tariff recovery [1].
Why did Nike's gross margin rise so much in fiscal Q4 2026?
Gross margin rose 890 basis points to 49.2%, but about 900 basis points of the gain came from the expected recovery of IEEPA tariffs, so the underlying margin was roughly flat [1].
How did Nike stock react to the earnings report?
NKE rose 4.9% to $43.06 on July 1, 2026, the first session after the release, and closed at $43.21 on July 7 [2].
Did Nike give guidance for fiscal 2027?
The earnings release did not include formal fiscal 2027 guidance; the next scheduled report is the fiscal Q1 2027 release on October 1, 2026 [1][3].
