# NIKE, Inc. (NKE)

Informational only - not investment advice.

CIK: 0000320187
SIC: 3021 Rubber & Plastics Footwear
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 30](/major-group/30/) > [SIC 3021 Rubber & Plastics Footwear](/industry/3021/)
Latest 10-K filed: 2026-07-15
SEC page: https://www.sec.gov/edgar/browse/?CIK=320187
Filing source: https://www.sec.gov/Archives/edgar/data/320187/000032018726000088/nke-20260531.htm

## At a glance

FY2026 · period end 2026-05-31 · filed 2026-07-15 · accession 0000320187-26-000088 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000320187.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 46,398,000,000 USD | 2026 | verified |
| Net income | 3,108,000,000 USD | 2026 | verified |
| Assets | 38,410,000,000 USD | 2026 | verified |
| Free cash flow | 2,184,000,000 USD | 2026 | computed |
| Net margin | 6.70% | 2026 | computed |
| Revenue YoY | +0.19% | 2026 | computed |
| ROE | 20.91% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | NKE | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 6.7% | 6.7% | 50 | 15 |
| Revenue growth | 0.2% | 0.3% | 43 | 15 |
| FCF margin | 4.7% | 8.1% | 21 | 15 |
| ROE | 20.9% | 11.9% | 64 | 15 |
| ROA | 8.1% | 4.9% | 64 | 15 |
| Liabilities / equity | 1.58 | 1.14 | 64 | 15 |
| Current ratio | 1.96 | 2.30 | 43 | 15 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 30 SIC Major Group 30, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 46398000000 | USD | 2026 | 2026-07-15 |
| Net income | 3108000000 | USD | 2026 | 2026-07-15 |
| Assets | 38410000000 | USD | 2026 | 2026-07-15 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-15. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000320187.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 34,350,000,000 | 36,397,000,000 | 39,117,000,000 | 37,403,000,000 | 44,538,000,000 | 46,710,000,000 | 51,217,000,000 | 51,362,000,000 | 46,309,000,000 | 46,398,000,000 |
| Net income | 4,240,000,000 | 1,933,000,000 | 4,029,000,000 | 2,539,000,000 | 5,727,000,000 | 6,046,000,000 | 5,070,000,000 | 5,700,000,000 | 3,219,000,000 | 3,108,000,000 |
| Gross profit | 15,312,000,000 | 15,956,000,000 | 17,474,000,000 | 16,241,000,000 | 19,962,000,000 | 21,479,000,000 | 22,292,000,000 | 22,887,000,000 | 19,790,000,000 | 19,911,000,000 |
| Diluted EPS | 2.51 | 1.17 | 2.49 | 1.60 | 3.56 | 3.75 | 3.23 | 3.73 | 2.16 | 2.10 |
| Operating cash flow | 3,846,000,000 | 4,955,000,000 | 5,903,000,000 | 2,485,000,000 | 6,657,000,000 | 5,188,000,000 | 5,841,000,000 | 7,429,000,000 | 3,698,000,000 | 2,868,000,000 |
| Capital expenditures | 1,105,000,000 | 1,028,000,000 | 1,119,000,000 | 1,086,000,000 | 695,000,000 | 758,000,000 | 969,000,000 | 812,000,000 | 430,000,000 | 684,000,000 |
| Dividends paid | 1,133,000,000 | 1,243,000,000 | 1,332,000,000 | 1,452,000,000 | 1,638,000,000 | 1,837,000,000 | 2,012,000,000 | 2,169,000,000 | 2,300,000,000 | 2,407,000,000 |
| Share buybacks | 3,223,000,000 | 4,254,000,000 | 4,286,000,000 | 3,067,000,000 | 608,000,000 | 4,014,000,000 | 5,480,000,000 | 4,250,000,000 | 2,985,000,000 | 146,000,000 |
| Assets | 23,259,000,000 | 22,536,000,000 | 23,717,000,000 | 31,342,000,000 | 37,740,000,000 | 40,321,000,000 | 37,531,000,000 | 38,110,000,000 | 36,579,000,000 | 38,410,000,000 |
| Stockholders' equity | 12,407,000,000 | 9,812,000,000 | 9,040,000,000 | 8,055,000,000 | 12,767,000,000 | 15,281,000,000 | 14,004,000,000 | 14,430,000,000 | 13,213,000,000 | 14,865,000,000 |
| Cash and cash equivalents | 3,808,000,000 | 4,249,000,000 | 4,466,000,000 | 8,348,000,000 | 9,889,000,000 | 8,574,000,000 | 7,441,000,000 | 9,860,000,000 | 7,464,000,000 | 7,563,000,000 |
| Free cash flow | 2,741,000,000 | 3,927,000,000 | 4,784,000,000 | 1,399,000,000 | 5,962,000,000 | 4,430,000,000 | 4,872,000,000 | 6,617,000,000 | 3,268,000,000 | 2,184,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 12.34% | 5.31% | 10.30% | 6.79% | 12.86% | 12.94% | 9.90% | 11.10% | 6.95% | 6.70% |
| Return on equity | 34.17% | 19.70% | 44.57% | 31.52% | 44.86% | 39.57% | 36.20% | 39.50% | 24.36% | 20.91% |
| Return on assets | 18.23% | 8.58% | 16.99% | 8.10% | 15.17% | 14.99% | 13.51% | 14.96% | 8.80% | 8.09% |
| Liabilities / equity | 0.87 | 1.30 | 1.62 | 2.89 | 1.96 | 1.64 | 1.68 | 1.64 | 1.77 | 1.58 |
| Current ratio | 2.93 | 2.51 | 2.10 | 2.48 | 2.72 | 2.63 | 2.72 | 2.40 | 2.21 | 1.96 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/NKE/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-15. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000320187.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-08-31 |  |  | 0.93 | reported discrete quarter |
| 2023-Q2 | 2022-11-30 |  |  | 0.85 | reported discrete quarter |
| 2023-Q3 | 2023-02-28 |  |  | 0.79 | reported discrete quarter |
| 2024-Q1 | 2023-08-31 | 12,939,000,000 | 1,450,000,000 | 0.94 | reported discrete quarter |
| 2024-Q2 | 2023-11-30 | 13,388,000,000 | 1,578,000,000 | 1.03 | reported discrete quarter |
| 2024-Q3 | 2024-02-29 | 12,429,000,000 | 1,172,000,000 | 0.77 | reported discrete quarter |
| 2024-Q4 | 2024-05-31 | 12,606,000,000 | 1,500,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-08-31 | 11,589,000,000 | 1,051,000,000 | 0.70 | reported discrete quarter |
| 2025-Q2 | 2024-11-30 | 12,354,000,000 | 1,163,000,000 | 0.78 | reported discrete quarter |
| 2025-Q3 | 2025-02-28 | 11,269,000,000 | 794,000,000 | 0.54 | reported discrete quarter |
| 2025-Q4 | 2025-05-31 | 11,097,000,000 | 211,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-08-31 | 11,720,000,000 | 727,000,000 | 0.49 | reported discrete quarter |
| 2026-Q2 | 2025-11-30 | 12,427,000,000 | 792,000,000 | 0.53 | reported discrete quarter |
| 2026-Q3 | 2026-02-28 | 11,279,000,000 | 520,000,000 | 0.35 | reported discrete quarter |
| 2026-Q4 | 2026-05-31 | 10,972,000,000 | 1,069,000,000 |  | derived Q4 = FY annual - nine-month YTD |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from NKE's latest 10-K: [/company/NKE/business/](/company/NKE/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from NKE's latest 10-K: [/company/NKE/risk-factors/](/company/NKE/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/320187/000032018726000037/nke-20260228.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-04-01
Report date: 2026-02-28

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

NIKE designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and services worldwide. We are the largest seller of athletic footwear and apparel in the world. We sell our products through two distribution channels: NIKE Direct operations which are comprised of both NIKE-owned retail stores and sales through our digital platforms (also referred to as "NIKE Brand Digital") and to wholesale accounts, which include a mix of independent distributors, licensees and sales representatives in nearly all countries around the world. Our goal is to deliver value to our shareholders by building a profitable global portfolio of branded footwear, apparel, equipment and accessories.

Our strategy is to achieve sustainable, profitable long-term revenue growth by leading with sport, creating innovative, "must-have" products, building deep personal consumer connections with our brands and delivering compelling consumer experiences through digital platforms and at retail.

QUARTERLY FINANCIAL HIGHLIGHTS

•NIKE, Inc. Revenues were $11.3 billion for the third quarter of fiscal 2026, flat on a reported basis and down 3% on a currency-neutral basis.

•NIKE Brand wholesale revenues were $6.5 billion for the third quarter of fiscal 2026 compared to $6.2 billion for the third quarter of fiscal 2025. The increase on a currency-neutral basis was driven by higher revenues in North America and Asia Pacific & Latin America ("APLA"), partially offset by lower revenues in Greater China and Europe, Middle East & Africa ("EMEA").

•NIKE Direct revenues were $4.5 billion for the third quarter of fiscal 2026 compared to $4.7 billion for the third quarter of fiscal 2025, primarily driven by a decrease in traffic.

•Gross margin for the third quarter of fiscal 2026 decreased 130 basis points to 40.2% primarily due to higher tariffs in North America.

•Inventories as of February 28, 2026, were $7.5 billion, flat compared to May 31, 2025, primarily reflecting an increase in units, offset by product mix.

•We returned approximately $609 million to our shareholders in the third quarter of fiscal 2026 through dividends.

FACTORS IMPACTING OUR BUSINESS

We are navigating through several external factors that create uncertainty and volatility in the operating environment, including, but not limited to, geopolitical dynamics, tax regulation, fluctuating foreign currency exchange rates and evolving tariff policies. These factors, and any changes to these factors, among others, could have a material adverse impact on consumer behavior and on our future Revenues and overall profitability. For a discussion of these factors and other risks, refer to Risk Factors in Item 1A of Part 1 within our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 (the "Annual Report").

Despite these factors, we are focused on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and emotionally connect with consumers, and elevating and growing the entire marketplace as we continue to take actions across the following areas:

•Product Management: Accelerating product innovation and reducing the supply of certain footwear products in the marketplace to rebalance the mix of our footwear portfolio.

•Marketplace Management: Repositioning NIKE Brand Digital as a full-price platform and reinvesting in wholesale distribution. This includes liquidating inventory through increased markdowns across NIKE Direct, and higher sales returns and discounts with our wholesale partners to reduce inventory and create capacity for new product. We are also making investments to elevate the presentation of our brands in physical retail.

•Brand Management: Increasing investment in demand creation, including brand marketing and sports marketing, to support key product launches and sports moments.

25

Table of Contents

Our reportable operating segments are at different stages of progress and we expect to complete these actions by the end of December 2026. The timing of financial impacts has and will continue to vary by segment. North America has made the most progress against these actions, while Greater China and Converse will take more time. In Greater China, a trend of declining store traffic, elevated promotional activity and higher levels of inventory across the marketplace are negatively impacting revenues and overall profitability, while Converse is in the midst of a strategic reset of the brand and marketplace. We expect negative impacts from Greater China to continue throughout fiscal 2027. While these product, marketplace and brand management actions taken across our portfolio have had, and in the future may have, a negative impact on our Revenues and overall profitability, we believe they will reignite brand momentum and reposition our business to drive long-term shareholder value.

We have also been evaluating opportunities to operate more efficiently and profitably through realigning costs across our supply chain and technology to serve an integrated marketplace. For the three and nine months ended February 28, 2026, we recognized pre-tax charges of $230 million and $304 million, respectively, primarily associated with employee severance costs. We continue to evaluate opportunities and may take additional actions which could lead to additional charges in future quarters. For more information, refer to Note 13 — Severance and Other Employee Costs within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

OTHER MATTERS

On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the U.S. were unauthorized. Total IEEPA tariffs paid as of the date of this report is approximately $1.0 billion. The ruling did not address potential refunds, and therefore the ultimate availability, timing and amount of any potential refunds of these tariffs is highly uncertain. As such, we have determined that potential recovery of any funds is not probable. We will continue to monitor changes to the import and export policies of the U.S. and other countries that could impact our financial position, results of operations and cash flows.

USE OF NON-GAAP FINANCIAL MEASURES

Throughout this Quarterly Report on Form 10-Q, we discuss non-GAAP financial measures, which should be considered in addition to, and not in lieu of, the financial measures calculated and presented in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). References to these measures should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Management uses these non-GAAP measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing our underlying business performance and trends.

Earnings Before Interest and Taxes ("EBIT") and EBIT margin: Calculated as Net income before Interest (income) expense, net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income and total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues, respectively. Total NIKE, Inc. EBIT and our EBIT margin calculations for the three and nine months ended February 28, 2026 and February 28, 2025 are as follows:

[[GREPCENT_TABLE]]
[["","THREE MONTHS ENDED FEBRUARY 28,","","NINE MONTHS ENDED FEBRUARY 28,"],["(Dollars in millions)","2026","2025","","2026","2025"],["Net income","$","520","","$","794","","","$","2,039","","$","3,008"],["Add: Income tax expense","130","","50","","","532","","559"],["Add: Interest (income) expense, net","(15)","","(18)","","","(42)","","(85)"],["EBIT","$","635","","$","826","","","$","2,529","","$","3,482"],["Total NIKE, Inc. Revenues","11,279","","11,269","","","35,426","","35,212"],["Net income margin","4.6","%","7.0","%","","5.8","%","8.5","%"],["EBIT margin","5.6","%","7.3","%","","7.1","%","9.9","%"]]
[[/GREPCENT_TABLE]]

Currency-neutral revenues: Currency-neutral revenues enhance visibility to underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. Currency-neutral revenues are calculated using actual exchange rates in use during the comparative prior year period in place of the exchange rates in use during the current period.

26

Table of Contents

COMPARABLE STORE SALES

Comparable store sales: This key metric, which excludes NIKE Brand Digital sales, comprises revenues from NIKE-owned in-line and factory stores for which all three of the following requirements have been met: (1) the store has been open at least one year, (2) square footage has not changed by more than 15% within the past year and (3) the store has not been permanently repositioned within the past year. Comparable store sales represents a performance metric that we believe is useful information for management and investors in understanding the performance of our established NIKE-owned in-line and factory stores. Management considers this metric when making financial and operating decisions. The method of calculating comparable store sales varies across the retail industry. As a result, our calculation of this metric may not be comparable to similarly titled metrics used by other companies.

27

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RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","THREE MONTHS ENDED FEBRUARY 28,","","NINE MONTHS ENDED FEBRUARY 28,"],["(Dollars in millions, except per share data)","2026","2025","% CHANGE","","2026","2025","% CHANGE"],["Revenues","$","11,279","","$","11,269","","0","%","","$","35,426","","$","35,212","","1","%"],["Cost of sales","6,749","","6,594","","2","%","","20,908","","19,891","","5","%"],["Gross profit","4,530","","4,675","","-3","%","","14,518","","15,321","","-5","%"],["Gross margin","40.2","%","41.5","%","","","41.0","%","43.5","%"],["Demand creation expense","1,090","","1,088","","0","%","","3,551","","3,436","","3","%"],["Operating overhead expense","2,887","","2,799","","3","%","","8,481","","8,504","","0","%"],["Total selling and administrative expense","3,977","","3,887","","2","%","","12,032","","11,940","","1","%"],["% of revenues","35.3","%","34.5","%","","","34.0","%","33.9","%"],["Interest (income) expense, net","(15)","","(18)","","\u2014","","","(42)","","(85)","","\u2014"],["Other (income) expense, net","(82)","","(38)","","\u2014","","","(43)","","(101)","","\u2014"],["Income before income taxes","650","","844","","-23","%","","2,571","","3,567","","-28","%"],["Income tax expense","130","","50","","160","%","","532","","559","","-5","%"],["Effective tax rate","20.0","%","5.9","%","","","20.7","%","15.7","%"],["NET INCOME","$","520","","$","794","","-35","%","","$","2,039","","$","3,008","","-32","%"],["Diluted earnings per common share","$","0.35","","$","0.54","","-35","%","","$","1.38","","$","2.02","","-32","%"]]
[[/GREPCENT_TABLE]]

CONSOLIDATED OPERATING RESULTS

REVENUES

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/320187/000032018726000088/nke-20260531.htm
Complete FY 2026 MD&A: /company/NKE/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-07-15
Report date: 2026-05-31

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

NIKE designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and services worldwide. We are the largest seller of athletic footwear and apparel in the world. We sell our products through two distribution channels: NIKE Direct operations, which are comprised of both NIKE-owned retail stores and sales through our digital platforms (also referred to as "NIKE Brand Digital"), and to wholesale accounts, which include a mix of independent distributors, licensees and sales representatives in nearly all countries around the world. Our goal is to deliver value to our shareholders by building a profitable global portfolio of branded footwear, apparel, equipment and accessories.

Our strategy is to achieve sustainable, profitable long-term revenue growth by leading with sport, creating innovative, "must-have" products, building deep personal consumer connections with our brands and delivering compelling consumer experiences through digital platforms and at retail.

FISCAL 2026 FINANCIAL HIGHLIGHTS

•NIKE, Inc. Revenues were $46.4 billion in fiscal 2026 compared to $46.3 billion in fiscal 2025, flat on a reported basis and down 2% on a currency-neutral basis.

•NIKE Brand wholesale revenues were $27.5 billion in fiscal 2026 compared to $25.9 billion in fiscal 2025. The increase on a currency-neutral basis was driven by higher revenues in North America, primarily offset by lower revenues in Greater China.

•NIKE Direct revenues were $17.7 billion in fiscal 2026 compared to $18.8 billion in fiscal 2025, primarily driven by a decrease in traffic.

•Gross margin in fiscal 2026 increased 20 basis points to 42.9%.

•Inventories as of May 31, 2026 were $7.5 billion, flat compared to the prior year, primarily reflecting an increase in units, offset by product mix.

•We returned approximately $2.5 billion to our shareholders in fiscal 2026 primarily through dividends.

•Return on Invested Capital ("ROIC") was 18.7% as of May 31, 2026, compared to 20.2% as of May 31, 2025. ROIC is considered a non-GAAP financial measure, see "Use of Non-GAAP Financial Measures" for additional information.

For discussion related to the results of operations and changes in financial condition in fiscal 2025 compared to fiscal 2024, refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our fiscal 2025 Form 10-K, which was filed with the United States Securities and Exchange Commission on July 17, 2025.

2026 FORM 10-K 29

Table of Contents

FACTORS IMPACTING OUR BUSINESS

We are navigating through several external factors that create uncertainty and volatility in the operating environment, including, but not limited to, geopolitical dynamics, tax regulation, fluctuating foreign currency exchange rates and evolving tariff policies. These factors, and any changes to these factors, among others, could have a material adverse impact on consumer behavior and on our future Revenues and overall profitability. For a discussion of these factors and other risks, refer to Item 1A. Risk Factors.

Despite these factors, we are focused on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and emotionally connect with consumers, and elevating and growing the entire marketplace as we continue to take actions across the following areas:

•Product Management: Accelerating product innovation and reducing the supply of certain footwear products in the marketplace to rebalance the mix of our footwear portfolio.

•Marketplace Management: Repositioning NIKE Brand Digital as a full-price platform and reinvesting in wholesale distribution. This includes liquidating inventory through increased markdowns across NIKE Direct, and higher sales returns and discounts with our wholesale partners to reduce inventory and create capacity for new product. We are also making investments to elevate the presentation of our brands in physical retail.

•Brand Management: Increasing investment in demand creation including brand marketing and sports marketing, to support key product launches and sports moments.

Our reportable operating segments are at different stages of progress, and we expect to complete these actions by the end of December 2026. The timing of financial impacts has varied and will continue to vary by segment. North America has made the most progress against these actions, while Greater China and Converse will take more time.

Additionally, in Greater China, a trend of declining store traffic, elevated promotional activity and higher levels of inventory across the marketplace are negatively impacting revenues and overall profitability, while Converse is in the midst of a strategic reset of the brand and marketplace. We expect negative impacts from Greater China and Converse to continue throughout fiscal 2027.

While these product, marketplace and brand management actions taken across our portfolio have had, and in the future may have, a negative impact on our Revenues and overall profitability, we believe they will reignite brand momentum and reposition our business to drive long-term shareholder value.

We have also taken steps to operate more efficiently and profitably, primarily through realigning costs across our supply chain and technology to serve an integrated marketplace. In fiscal 2026, we recognized charges of $385 million associated with employee severance costs. We continue to evaluate opportunities across the Company and may take additional actions which could lead to additional charges in future quarters. For additional information, refer to Note 18 — Severance, Restructuring and Other Employee Costs within the accompanying Notes to the Consolidated Financial Statements.

OTHER MATTERS

On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the U.S. were unauthorized. During the fourth quarter of fiscal 2026, we deemed the recovery of IEEPA tariffs paid to be probable. Accordingly, we recognized a benefit of $986 million in Cost of sales within the Consolidated Statements of Income for the recovery of IEEPA tariffs paid, for which $965 million and $21 million of the benefit was classified within North America and Converse, respectively, largely offsetting the impact of the IEEPA tariffs recognized during fiscal 2026. As of May 31, 2026, we received $302 million and recorded $684 million of outstanding IEEPA tariff receivables reflected within Accounts receivable, net on the Consolidated Balance Sheets. Subsequent to May 31, 2026, we received substantially all of the remaining IEEPA tariff receivable. We will continue to monitor developments pertaining to the import and export policies of the U.S. and other countries, as well as those pertaining to tariff refunds and litigation, that could impact our financial position, results of operations and cash flows.

USE OF NON-GAAP FINANCIAL MEASURES

Throughout this Annual Report on Form 10-K, we discuss non-GAAP financial measures, which should be considered in addition to, and not in lieu of, the financial measures calculated and presented in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). References to these measures should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Management uses these non-GAAP measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing our underlying business performance and trends.

2026 FORM 10-K 30

Table of Contents

Earnings Before Interest and Taxes ("EBIT") and EBIT margin: Calculated as Net income before Interest (income) expense, net and Income tax expense in the Consolidated Statements of Income and total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues in the Consolidated Statements of Income, respectively. Total NIKE, Inc. EBIT and EBIT margin calculations in fiscal 2026, 2025 and 2024 are as follows:

[[GREPCENT_TABLE]]
[["","YEAR ENDED MAY 31,"],["(Dollars in millions)","2026","2025","2024"],["Net income","$","3,108","$","3,219","$","5,700"],["Add: Interest (income) expense, net","(50)","(107)","(161)"],["Add: Income tax expense","792","666","1,000"],["EBIT","$","3,850","$","3,778","$","6,539"],["Total NIKE, Inc. Revenues","46,398","46,309","51,362"],["Net income margin","6.7%","7.0%","11.1%"],["EBIT margin","8.3%","8.2%","12.7%"]]
[[/GREPCENT_TABLE]]

Return on Invested Capital ("ROIC"): Represents a performance measure that management believes is useful information in understanding the Company's ability to effectively manage invested capital. Our ROIC calculation as of May 31, 2026 and 2025 is as follows:

[[GREPCENT_TABLE]]
[["","FOR THE TRAILING FOUR QUARTERS ENDED"],["(Dollars in millions)","MAY 31, 2026","MAY 31, 2025"],["Numerator"],["Net income","$","3,108","$","3,219"],["Add: Interest (income) expense, net","(50)","(107)"],["Add: Income tax expense","792","666"],["EBIT","3,850","3,778"],["Income tax adjustment(1)","(782)","(645)"],["Earnings before interest and after taxes","$","3,068","$","3,133"],["","AVERAGE FOR THE TRAILING FIVE QUARTERS ENDED"],["(Dollars in millions)","MAY 31, 2026","MAY 31, 2025"],["Denominator"],["Total debt(2)","$","11,113","$","11,814"],["Add: Shareholders' equity","13,944","13,926"],["Less: Cash and equivalents and Short-term investments","8,631","10,236"],["Total invested capital","$","16,426","$","15,504"],["ROIC","18.7%","20.2%"]]
[[/GREPCENT_TABLE]]

(1)Equals EBIT multiplied by the effective tax rate as of each of the respective quarter ends.

(2)Total debt includes the following: 1) Current portion of long-term debt, 2) Current portion of operating lease liabilities, 3) Long-term debt and 4) Operating lease liabilities.

Currency-neutral revenues: Currency-neutral revenues enhance visibility to underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. Currency-neutral revenues are calculated using actual exchange rates in use during the comparative prior year period in place of the exchange rates in use during the current period.

COMPARABLE STORE SALES

Comparable store sales: This key metric, which excludes NIKE Brand Digital sales, comprises revenues from NIKE-owned in-line and factory stores for which all three of the following requirements have been met: (1) the store has been open at least one year, (2) square footage has not changed by more than 15% within the past year and (3) the store has not been permanently repositioned within the past year. Comparable store sales represents a performance metric that we believe is useful information for management and investors in understanding the performance of our established NIKE-owned in-line and factory stores. Management considers this metric when making financial and operating decisions. The method of calculating comparable store sales varies across the retail industry. As a result, our calculation of this metric may not be comparable to similarly titled metrics used by other companies.

2026 FORM 10-K 31

Table of Contents

RESULTS OF OPERATIONS

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/NKE/mda/fy2026/
All MD&A years: /company/NKE/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/NKE/mda/fy2025/): filed 2025-07-17; accession 0000320187-25-000047 (https://www.sec.gov/Archives/edgar/data/320187/000032018725000047/nke-20250531.htm)
- [FY 2024 MD&A](/company/NKE/mda/fy2024/): filed 2024-07-25; accession 0000320187-24-000044 (https://www.sec.gov/Archives/edgar/data/320187/000032018724000044/nke-20240531.htm)
- [FY 2023 MD&A](/company/NKE/mda/fy2023/): filed 2023-07-20; accession 0000320187-23-000039 (https://www.sec.gov/Archives/edgar/data/320187/000032018723000039/nke-20230531.htm)
- [FY 2022 MD&A](/company/NKE/mda/fy2022/): filed 2022-07-21; accession 0000320187-22-000038 (https://www.sec.gov/Archives/edgar/data/320187/000032018722000038/nke-20220531.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3021 Rubber & Plastics Footwear) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/NKE.md · JSON record: /company/NKE.json · verified financials: /company/NKE/financials.json / /company/NKE/financials.csv · machine TOC for the whole site: /llms.txt