NKE · NIKE, Inc.
10-Q filed 2026-04-01 period 2026-02-28
64 Stable
confidence High · source filing on SEC.gov ↗
- Gross margin contracted by 130 basis points in Q3 fiscal 2026 to 40.2%, primarily driven by higher tariffs in North America.
- Nike paused its share repurchase program during fiscal 2026, with no shares repurchased during the third quarter.
- Management expects negative impacts from declining store traffic and elevated promotional activity in Greater China to continue throughout fiscal 2027.
Filing Health Score pillars
Profitability 25%
50
Revenue is flat (down 3% currency-neutral) and gross margin contracted by 130 basis points to 40.2% due to higher tariffs, leading to a 35% decline in net income for the quarter (MD&A - Results of Operations).
Balance sheet 20%
85
Total cash and short-term investments of $8,057 million exceed total debt of $8,029 million, and the current ratio is strong at 2.14, though share repurchases were paused during the fiscal year (Unaudited Condensed Consolidated Balance Sheets, MD&A - Unregistered Sales).
Cash generation 20%
55
Operating cash flow of $1,231 million is below net income of $2,039 million for the nine-month period, and free cash flow of $685 million represents a low FCF margin of under 2% due to working capital outflows (Unaudited Condensed Consolidated Statements of Cash Flows).
Risk flags 20%
85
No material changes to risk factors or going-concern issues are reported, though the company is navigating significant tariff uncertainties and recognized $304 million in pre-tax severance charges (MD&A - Factors Impacting Our Business, Note 13).
Mgmt signal 15%
45
Management has paused share repurchases and expects negative impacts from Greater China to continue through fiscal 2027, while executing a strategic reset for Converse and transitioning digital platforms to full-price (MD&A - Overview, Factors Impacting Our Business).
Key metrics (Three and nine months ended February 28, 2026)
revenue: $11,279 million (Q3), $35,426 million (9M)
cash and equivalents: $6,660 million
total debt: $8,029 million
shares outstanding: 1,480.5 million basic (Q3 average)
net income: $520 million (Q3), $2,039 million (9M)
period: Three and nine months ended February 28, 2026
operating cash flow: $1,231 million (9M)
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.