NKE US S&P 500DJIARussell 1000 Earnings call

Nike, Inc. (NKE) · Q3 2026 results and valuation

Share price: $38.32 · 2026-11-11

Nike, Inc. designs, develops, and markets athletic footwear, apparel, equipment, and accessories under the Nike, Jordan, and Converse brands. The company sells its products to wholesale accounts and directly to consumers through its own retail stores and digital platforms in nearly all countries worldwide. Source: 10-K annual report (2026-07-15)

Results Q3 2026 vs Q2 2026 · previous quarter · fiscal Q1 2027 · published 1 Oct 2026 and 30 Jun 2026

Net income down 33.4% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.

1 · Numbers

−33.4%

Net income vs Q2 2026

Outlook given

Net income 712.0M vs 1.07B

Revenue +2.2%

Against the same quarter last year (Q3 2025) it is −2.1% — part of the move on last quarter is seasonal.

2 · How management spoke

Typical

Less upbeat than 61% of company calls

Answers to analysts: upbeat, in line with the script.

Similar to last call.

3 · What stood out

Nike expects Pace to deliver approximately $2.5 billion in savings for the upcoming period.

Valuation

Is Nike, Inc. undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2026-05-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At −3.2% growth a year (3-year revenue growth), the model's fair value is $14.45 a share — the stock trades 165% above it. Today's price assumes 10.9% growth a year.

Current price

$38.32

close of 2026-11-11

Market implies growth of i

+10.9% for 10 yrs

Fair value / share

$14.45

Buy below

$10.84

Price vs fair value

Overvalued 165%

Price vs buy-below price

Overvalued >200%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Figure

Nike reduced revenue from the Dunk by nearly 50% in the quarter as planned.

Source quote
“As planned, we reduced revenue from the Dunk by nearly 50% in the quarter.”
Key theme

Nike expects fiscal 2027 revenues to decline in the high single-digit range.

Source quote
“For fiscal '27, we currently expect revenues to decline in the high single-digit range.”
Key theme

Nike expects fiscal '27 adjusted earnings per share to be in the range of $1.15 to $1.35.

Source quote
“And finally, with respect to adjusted earnings per share, we currently expect fiscal '27 adjusted earnings per share to be in the range of $1.15 to $1.35.”
Guidance

Nike expects Pace to deliver approximately $2.5 billion in savings for the upcoming period.
Figure

Gross margin was 42.8%, up 60 basis points compared to last year.

Source quote
“Gross margin was 42.8%, up 60 basis points compared to LY.”

4 more

Figure

The company grew this business to $16 billion last fiscal year.

Source quote
“Last fiscal year, we grew this business to $16 billion.”
Figure

Nike is eliminating distribution through channels not aligned with its marketplace strategy to decrease the deep discounting of its brands.

Source quote
“We are eliminating distribution through channels that are not aligned with our marketplace strategy, which will decrease the deep discounting of our brands.”
Key theme

Nike Inc. will reduce the overall number of roles across the company over time as a result of structural changes.

Source quote
“Over time, those changes will reduce the overall number of roles across NIKE Inc.”
Figure

NIKE Basketball grew its women's signature business nearly 500% from FY '22 to FY '26.

Source quote
“NIKE Basketball has grown our women's signature business nearly 500% from FY '22 to FY '26.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Typical (was typical)

Answers to analysts Upbeat (was restrained)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Dave brings deep financial expertise, strong operational leadership and a proven track record of helping world-class companies grow.”

“I'm excited to partner with him and the rest of our senior leadership team to serve consumers better, accelerate our profitability and create long-term value for shareholders.”

“And so at a high level, that's the progress or the work that we're doing around Pace, and it will help us build a stronger NIKE for the future and...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-08-31)

Metric	Q3 2026period end 2026-08-31	Q2 2026period end 2026-05-31	Change	Q3 2025	YoY
Revenue	11.21B	10.97B	+2.2%	11.72B	−4.3%
Gross profit	4.80B	5.39B	−11.0%	4.94B	−2.9%
Operating income	921.0M	1.33B	−30.7%	922.0M	−0.1%
Net income	712.0M	1.07B	−33.4%	727.0M	−2.1%
EPS	0.48	0.72	−33.3%	0.49	−2.0%
P/E today 18.5	18.7	22.0	−3.3	39.7	−21.0

Topics

Most discussed now

New Dave brings deep financial expertise, strong operational leadership and a proven track record of helping world-class companies grow.
Nike's NIKE Brand Performance portfolio continued to grow.
Nike's unwavering focus on driving shareholder value which requires us to restore the NIKE portfolio of brands back to premium...
They got a special invite to work out at the Texas football weight room.
Execute a marketplace reset in China, and you saw that reflected in the numbers this quarter.

Faded since Q2 2026

Fading Nike is making meaningful structural improvements in each of them.
Fading It is what is enabled us to move about 8 thousand teammates into vertical sport teams under Nike's new...
Fading Growing mid single digits and delivering positive year over year retail sales comps across running, training, and global football as...
Fading A team that had carried the weight of expectations more than 50 years finally broke through.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-01 Results of operations; Restructuring costs · SEC 8-K
Nike announced a multi-year program with expected pre-tax charges of approximately $1.0 billion and estimated cumulative savings of $2.5 billion through fiscal 2031.
2026-09-16 Director or officer change; Regulation FD disclosure · SEC 8-K
NIKE, Inc. expanded its Board to twelve members and appointed Alexandre Arnault as a director, who received a sign-on award of restricted shares valued at $200,000.
2026-09-10 Director or officer change; Shareholder vote results · SEC 8-K
Shareholders approved the amended Employee Stock Purchase Plan, which includes an increase of 16,000,000 shares of Class B Common Stock authorized for issuance.
2026-08-10 Director or officer change · SEC 8-K
Johanna Nielsen will resign as Vice President, Chief Accounting Officer, and Corporate Controller on September 4, 2026, with David Denton assuming the role of Interim Corporate Controller.
2026-06-30 Results of operations · SEC 8-K
NIKE, Inc. issued a press release disclosing financial results for the fiscal quarter and year ended May 31, 2026.
2026-06-23 Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
NIKE, Inc. announced the appointment of David Denton as Executive Vice President and Chief Financial Officer effective August 16, 2026, with an annual base salary of $1,450,000.
2026-06-18 Director or officer change; Regulation FD disclosure · SEC 8-K
John W. Rogers, Jr. will retire from the Board of Directors effective at the 2026 Annual Meeting, reducing the board size to eleven members.
2026-03-31 Results of operations · SEC 8-K
NIKE, Inc. issued a press release disclosing financial results for the fiscal quarter ended February 28, 2026.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

Q2

expectation that the sport will continue its momentum

Source quote
“Basketball was up double digits in North America with expectation that the sport will continue its momentum in Q2, and both tennis and golf grew double digits.”
fiscal year '28

teams move into this new formation

Source quote
“We expect teams to move into this new formation in fiscal year '28.”
November

provide a clearer view of our long-term growth algorithm

Source quote
“At our Investor Day in November, we will provide a clearer view of our long-term growth algorithm, the actions behind our portfolio priorities and how our operating model will support sustainable growth and value creation.”
fiscal years '29 and '30

realization of the majority of the program savings

Source quote
“We have begun taking actions and expect the majority of the program savings to be realized in fiscal years '29 and '30, with the full realization of the program to continue into fiscal year '31.”
November

provide additional context as they further refine plans and priorities

Source quote
“We expect to provide additional context in November as we further refine our plans as well as our priorities.”