Nike (NYSE: NKE) stock fundamentals

On a currency-neutral basis, Nike's Form 10-Q for Q1 FY2027 attributes the fall primarily to lower revenues in Greater China, Europe, Middle East and Africa, and Converse.^[1] Greater China revenue was USD 1,180 million in the quarter, against USD 1,512 million a year earlier.^[1] Higher revenues in North America partially offset the declines, according to the same 10-Q.^[1]

Gross margin, our calculation, was 42.8% in Q1 FY2027, against 42.2% in Q1 FY2026. The 10-Q attributes the higher gross margin primarily to lower warehousing and logistics costs.^[1]

Gross margin was 49.2% in Q4 FY2026, against 40.2% to 42.2% in the 3 quarters before it. Nike's FY2026 10-K says it recognised a benefit of USD 986 million in cost of sales in the fourth quarter of fiscal 2026, for the recovery of tariffs paid.^[2] Those tariffs had been imposed under the International Emergency Economic Powers Act (IEEPA).^[2] The 10-K says the benefit largely offset the IEEPA tariffs recognised during FY2026.^[2]

After gross profit, Nike lists demand creation expense and operating overhead expense, which add up to total selling and administrative expense.^[1] Interest and other items, each shown net, follow, then income before income taxes, the first profit subtotal after gross profit. Our rules never build operating income for a standard company, so the fundamentals profile has no net debt to EBITDA either, as EBITDA starts from operating income. Our methodology for operating margin gives its formula, operating income divided by revenue.

Nike's Form 10-Q uses EBIT, a non-GAAP measure defined as net income before net interest and income tax expense, to evaluate its segments.^[1] It reports total EBIT of USD 907 million for Q1 FY2027, against USD 904 million a year earlier.^[1] From FY2023 to FY2026, gross margin stayed between 42.7% and 44.6%. Net income, the numerator of net margin, was USD 3.11 billion in FY2026.

In June 2026, Nike's board reapproved its USD 18 billion share repurchase programme, first approved in June 2022, to continue without a fixed expiration date.^[1] As of 31 Aug 2026, Nike had repurchased 124.4 million shares under the programme for a total of about USD 12.1 billion.^[1] Its Form 10-Q shows dividends paid of USD 610 million in Q1 FY2027, against USD 591 million in Q1 FY2026.^[1]

Free cash flow, our calculation, was USD 2.18 billion in FY2026, less than the USD 2.41 billion of dividends paid that year. FY2026 is the only one of the 5 fiscal years from FY2022 to FY2026 in which free cash flow was less than dividends paid. Cash from operations fell from USD 7.43 billion in FY2024 to USD 2.87 billion in FY2026. Nike's FCF margin, our calculation of free cash flow as a share of revenue, was 4.7% in FY2026, against a median of 9.5% for FY2022 to FY2026.

Every cash flow line we store for FY2022 to FY2026, the investing and financing totals included, is in the Nike financial statements. For another consumer-brand company, PepsiCo stock fundamentals sets out cash from operations, capital expenditure, free cash flow, dividends paid and buybacks by fiscal year.