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Nike has reported flat fiscal 2026 revenues of $46.4 billion (£34.8 billion) and a 1% increase in gross profit to $19.9 billion (£14.9 billion) for the year ended 31 May 2026, as declines in Greater China persisted. On a currency-neutral basis, full-year revenue fell 2%.
Key data points:
- FY26 revenue was flat at $46.4 billion (£34.8 billion), while gross profit rose 1% to $19.9 billion.
- Fourth-quarter gross margin jumped to 49.2%, helped by a $986 million tariff-related recovery.
- Greater China and EMEA remained under pressure, with full-year revenue for Greater China down 11% and EBIT down 20%.
Tariff recovery lifts Q4 margin
Fourth-quarter revenue was $11 billion (£8.33 billion), down 1% reported and 4% currency-neutral, reflecting Nike’s lowest quarterly revenue since February 2022.
Fourth-quarter profitability, however, improved, as its gross margin rose 890 basis points to 49.2%, “primarily due to the expected recovery of the IEEPA tariffs” in the US. These were sweeping import taxes implemented by the Trump administration in 2025, which the Supreme Court later ruled unlawful.
Gross margin rose 890 basis points to 49.2% in the period. Without the recovery, margin would have been broadly flat.
CFO Matthew Friend commented that the fourth quarter results were “in line with our expectations”.
Full-year 2026 results
Full-year 2026 revenue was flat at $46.4 billion for Nike, with net income falling 3% to $3.1 billion (£2.34 billion) for the 12 months to May.
Revenue for the EMEA region was down 3% on a constant currency basis.
Elliott Hill, Nike’s President and CEO, said: “We made meaningful structural improvements to lay the groundwork for our Sport Offense across our team culture, innovative product, brand strength, and how we serve consumers in our countries and cities.”
Nike’s channel mix continued to diverge. Full-year wholesale revenue rose 6% to $27.5 billion (£20.8 billion), up 4% on a currency-neutral basis, while Nike Direct revenue, which includes all sales made directly by Nike to consumers, fell 6% to $17.7 billion (£13.35 billion), or 8% currency-neutral. Nike-owned stores revenue fell 4% over the 12 months period.
Meanwhile, Nike’s online portion of the Direct revenue, including revenue from its website and apps, declined 12% for both the fourth quarter and the full-year.
Converse revenue dropped 31% for the full-year to $1.2 billion (£906 million), with declines across all territories.
Greater China remained the weakest region. Full-year revenue in the region fell 11% to $4.55 billion (£3.435 billion), or 12% on a currency-neutral basis, while EBIT dropped 20% to $1.035 billion (£781.4 million). In the fourth quarter alone, Greater China revenue was $1.615 billion (£1.219 billion), down 7% reported and 10% currency-neutral.
Hill told the Financial Times that the company was “fully committed to winning” in China, calling it “a critical long-term growth market”. He added that Nike’s teams in the region were “executing a comprehensive reset, returning to sport and innovation, taking a more local approach to product creation”.
He framed FY26 as a foundation-laying year. “We took decisive actions to strengthen the foundation of Nike and reposition our business for long-term growth,” he said. “While we continue to face top-line headwinds, we’re encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential.”
Friend added that Nike had delivered “financial discipline in an increasingly challenging operating environment, where sell-through remains challenged”.
“We are improving the health of our business, managing our product portfolio and investing in marketplace elevation, while adjusting our operating costs for greater efficiency over time,” Friend said.