Start here if you're new
what it is
Nike sells shoes, clothes, and sports gear through stores, its website, and wholesale partners around the world.
how it gets paid
Last year Nke made $46.3B in revenue. North America was the main engine at $19.4B, or 42% of sales.
why growth slowed
Revenue fell 9.8% last year. Revenue reached $12.4 billion, helped by 9% growth in North America to $5.63 billion.
what just happened
Nike's latest quarter beat lowered expectations, with EPS at $0.53 versus roughly $0.35 expected.
At a glance
A balance sheet — strong enough to weather a downturn
60/100 earnings predictability — reasonably predictable
29.9x trailing p/e — priced about right
2.5% dividend yield — cash in your pocket every quarter
23.0% return on capital — every dollar works hard here
xvary composite: 65/100 — average
What they do
Nike sells shoes, clothes, and sports gear through stores, its website, and wholesale partners around the world.
You can spot the Swoosh from across a parking lot, and that matters because brands let companies charge full price. Even in a rough year, Nike still posted a 41.4% gross margin (gross margin → sales left after product costs → room to fund marketing and still profit). That is the kind of cushion you feel when your logo still sells after revenue falls to $46.3 billion.
How they make money
$46.3B
annual revenue · their business grew -9.8% last year
North America
$19.4B
9.0%
EMEA
$13.3B
10.0%
Greater China
$6.6B
13.0%
APLA
$5.6B
11.0%
Converse
$1.4B
16.0%
The products that matter
athletic footwear franchise
Footwear
$24.1B snapshot revenue base
this page ties nike's business to a $24.1B revenue base, but it does not split footwear, apparel, and equipment into separate reported lines. that missing detail matters less than usual because the stock is trading on whether margins recover, not whether one sneaker line carried the quarter.
core identity
owned retail and ecommerce
Direct-to-consumer
$12.4B latest quarter
nike's own stores and digital channels matter because direct sales usually keep more gross profit in-house. with the data here, you use the $12.4B quarter as a demand check and the 5.1% net margin as the reality check.
margin lever
regional demand engine
North America
$5.63B · +9%
north america grew 9% to $5.63B last quarter. that's the cleanest good number on the page. it shows the brand still has pull where nike knows the market best, but one region cannot carry a global recovery forever.
the number to watch
Key numbers
29.9x
trailing p/e
P/E → how many years of earnings you are paying for → so what: 29.9x is rich for a company with projected sales growth of 2.0%.
$46.3B
annual revenue
This is a huge business, but it shrank 9.8% vs. prior year, which tells you scale is not fixing demand by itself.
41.4%
gross margin
Gross margin → sales left after product costs → so what: 41.4% gives Nike room to spend on marketing and still make money.
23.0%
return on capital
Return on capital → profit earned on each dollar invested → so what: 23.0% says the business model still works even while growth slows.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $7.0B (7% of capital)
- net profit margin 9.5% — keeps 10 cents of every dollar in revenue
- return on equity 30% — $0.30 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in NKE 3 years ago → it's now worth $5,640.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Nike's latest quarter beat lowered expectations, with EPS at $0.53 versus roughly $0.35 expected.
Revenue reached $12.4 billion, helped by 9% growth in North America to $5.63 billion. The deadpan part is both sales and earnings still fell vs. prior year because discounting stayed in play.
$12.4B
revenue
$0.53
eps
41.4%
gross margin
the number that mattered
North America sales rose 9% to $5.63 billion, because that region carried the quarter while the broader turnaround still looked uneven.
-
nike’s november-quarter showing (fiscal years end may 31st) topped lowered consensus estimates.
-
north american receipts were up 9%, to $5.63 billion, contributing to a sales tally of $12.4 billion, which bested our $12.2 billion call.
-
further, share earnings clocked in at $0.53, ahead of the average expected figure of around $0.35.
-
still, both figures were down noticeably vs. prior year, as discounting remained in play.
-
with that, margins moved downward, coupled with a disappointing reading from greater china.
source: company earnings report, 2026
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What could go wrong
the #1 risk is margin damage from discounting and restructuring while nike tries to reset demand without weakening the brand.
high
$300M restructuring bill
nike expects about $300M in pre-tax restructuring charges tied to severance. that is real earnings pressure landing on top of a business already running at a 5.1% net margin.
when margins are thin, a one-time charge still matters. it shortens management's room for error.
high
persistent discounting
EPS beat consensus, yet still fell 32% from last year. that usually tells you margin quality matters more than the headline beat.
if markdowns stay central to moving inventory, nike preserves volume by giving away profit.
med
Greater China stays soft
management flagged disappointing demand in Greater China. North America can stabilize the quarter. it cannot be the whole global growth story.
the longer China underwhelms, the longer investors wait for a true multi-region recovery.
med
institutional support keeps leaking
institutions have been net sellers for three straight quarters, with 937 sellers versus 925 buyers last quarter. that is not capitulation. it is a slow withdrawal of sponsorship.
a premium multiple has less support when big holders keep trimming into uncertainty.
a $300M restructuring charge, a 5.1% net margin, and three straight quarters of net institutional selling mean the turnaround does not have much room for another weak report.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarter's margin commentary
the next report matters less for the headline beat and more for whether nike can move product without leaning so hard on markdowns.
metric
North America above $5.63B
North America grew 9% last quarter to $5.63B. if that number rolls over, the cleanest support for the reset weakens fast.
risk
Greater China stabilization
investors do not need perfection here. they need the region to stop showing up as the weak link in every recovery conversation.
trend
institutional flow
three straight quarters of net selling is a trend. if that reverses, it would be one of the cleaner signs that patience is coming back.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see a stock waiting for proof, not one with a clear near-term edge.
risk profile
average
stability score 3 — middle of the market on risk. safer than a broken retailer, less dependable than a true staple.
chart momentum
average
technical score 3 — the chart is not giving you a strong uptrend or a clean washout. it is stuck in prove-it mode too.
earnings predictability
60 / 100
that means earnings are somewhat forecastable, but not smooth enough to call this a sleep-well-at-night compounder right now.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 925 buyers vs. 937 sellers in 3q2025. total institutional holdings: 1.0B shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$27
$79
$65
current price
$53
target midpoint · 18% from current · 3-5yr high: $105 (+65% · 15% ann'l return)
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