NIKE (NYSE:NKE) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

NIKE (NYSE:NKE) released its quarterly earnings results on Tuesday. The footwear maker reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.29 by $0.06, Briefing.com reports. The business had revenue of $11.28 billion during the quarter, compared to analysts’ expectations of $11.23 billion. NIKE had a return on equity of 18.43% and a net margin of 5.43%.The company’s revenue was up .1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.54 EPS.

Here are the key takeaways from NIKE’s conference call:

• The company intentionally removed unhealthy classic-footwear inventory, creating roughly a five-point headwind to reported results to improve marketplace health and revenue quality.
• Product momentum is strong—Nike Running grew over 20% this quarter, Global Football is being primed for the World Cup, and innovations like Nike Mind sold out (production doubled) indicating scalable demand for new platforms.
• Q3 financials showed revenues flat (down 3% currency-neutral), NIKE Direct down 7%, gross margin down ~130 bps (with ~300–650 bps tariff impacts in the U.S.), and EPS of $0.35.
• Management booked a $230 million severance charge (mainly supply chain and technology) to variabilize costs and streamline operations, with expected benefits beginning in fiscal 2027 and building through fiscal 2028.
• Management expects to complete its “Win Now” actions by year-end, expects revenues down low-single-digits over that horizon, anticipates gross-margin inflection in Q2 FY27, and will provide a longer-term outlook at an Investor Day this fall.

NIKE Stock Up 3.1%

Shares of NYSE:NKE opened at $52.83 on Wednesday. NIKE has a fifty-two week low of $50.95 and a fifty-two week high of $80.17. The firm’s 50 day moving average price is $59.68 and its 200 day moving average price is $63.66. The company has a quick ratio of 1.40, a current ratio of 2.06 and a debt-to-equity ratio of 0.50. The stock has a market cap of $78.21 billion, a price-to-earnings ratio of 31.08, a price-to-earnings-growth ratio of 2.69 and a beta of 1.27.

NIKE Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 2nd will be paid a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Monday, March 2nd. NIKE’s dividend payout ratio is presently 96.47%.

Institutional Investors Weigh In On NIKE

Large investors have recently modified their holdings of the company. Brighton Jones LLC lifted its position in NIKE by 388.5% in the fourth quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker’s stock valued at $15,316,000 after acquiring an additional 160,980 shares during the last quarter. Measured Wealth Private Client Group LLC purchased a new position in shares of NIKE during the third quarter worth about $96,000. Mark Sheptoff Financial Planning LLC purchased a new position in shares of NIKE during the fourth quarter worth about $80,000. Intesa Sanpaolo Wealth Management acquired a new stake in shares of NIKE during the fourth quarter worth about $60,000. Finally, Caitlin John LLC lifted its holdings in shares of NIKE by 156.4% in the 4th quarter. Caitlin John LLC now owns 941 shares of the footwear maker’s stock valued at $60,000 after purchasing an additional 574 shares during the last quarter. 64.25% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have recently commented on NKE shares. Telsey Advisory Group lowered their price target on NIKE from $72.00 to $65.00 and set a “market perform” rating for the company in a research report on Wednesday, March 25th. Robert W. Baird lowered their target price on NIKE from $93.00 to $85.00 and set an “outperform” rating for the company in a report on Friday, December 19th. Daiwa Securities Group dropped their target price on NIKE from $75.00 to $61.00 in a research report on Tuesday, December 23rd. Berenberg Bank reiterated a “neutral” rating and set a $70.00 price target on shares of NIKE in a research note on Friday, December 19th. Finally, Citigroup reissued a “neutral” rating and issued a $65.00 price objective (down from $70.00) on shares of NIKE in a research note on Friday, December 19th. Nineteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $70.07.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q3 results beat consensus on both top and bottom lines (EPS $0.35 vs. ~ $0.31 and revenue ~$11.28B in line/above estimates), showing some operational progress and product demand in running/performance categories. TipRanks Q3 Preview
• Positive Sentiment: Management reiterated parts of the “Win Now” turnaround — tighter discounting and new product innovation were credited with stabilizing demand in some segments. Reuters: Sales Beat
• Neutral Sentiment: Revenue was essentially flat year‑over‑year (reported ~$11.3B) with mixed regional performance: wholesale held up while NIKE Direct declined — important context but not an immediate positive/negative catalyst by itself. Business Wire Release
• Neutral Sentiment: Some analysts still highlight long-term upside tied to brand strength and product cycles; coverage remains skewed bullish overall despite short-term concerns. WSJ: Analyst Context
• Negative Sentiment: Forward guidance disappointed: Nike warned current-quarter revenue could decline ~2–4% and projected China sales to drop about 20%, a major hit given China’s size for the business — this is the primary driver of the stock’s decline. Invezz: Weak Outlook
• Negative Sentiment: Gross‑margin pressure and narrower operating profit were highlighted (management expects margin recovery over multiple quarters), raising near‑term profitability concerns. Seeking Alpha: Margin Pressure
• Negative Sentiment: Geopolitical risk: executives warned that unrest in the Middle East could further complicate the turnaround, adding a macro tail‑risk that may keep investors cautious. Reuters: Middle East Risk
• Negative Sentiment: Immediate market reaction: shares slid sharply in after‑hours / premarket trading, reflecting investor skepticism that the turnaround will accelerate given the new guidance and China slump. Blockonomi: Stock Plunge
• Neutral Sentiment: Some houses (e.g., Citi) maintained neutral/hold ratings citing the beat but cautious outlook; watch for upcoming analyst revisions and updated models. TipRanks: Citi Hold

NIKE Company Profile

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).