Nike Q1 FY2027 results: revenue, margins, cash flow, guidance

By our calculation, Nike's gross margin was 42.8% in Q1 FY2027 against 42.2% in Q1 FY2026, a rise of 0.6 percentage points. Nike's release says the wider margin came mainly from lower warehousing and logistics costs.^[2]

By our calculation, net income was 2.1% lower and diluted EPS 2.0% lower than in Q1 FY2026. Nike's Form 10-Q has no operating income line, so this recap shows no operating margin; the Nike financial statements page lists the income statement lines Nike does present.^[1]

The results table also carries Q4 FY2026, the quarter before. Its gross margin was 49.2% by our calculation. Nike's FY2026 Form 10-K says that quarter included a benefit in cost of sales after Nike deemed the recovery of tariffs paid under the International Emergency Economic Powers Act to be probable.^[3] We therefore set Q1 FY2027 against Q1 FY2026, as Nike's release does, and use reported revenue, not the currency-neutral change the release also gives.^[2]

The Q2 FY2026 and Q3 FY2026 changes are measured against Q2 FY2025 and Q3 FY2025, which were 7.7% and 9.3% lower than the same quarters a year before them, by our calculation.

Nike's revenue varies through its fiscal year: USD 12.4 billion in Q2 FY2026 and, by our calculation, USD 11.0 billion in Q4 FY2026. The table therefore compares each quarter with the same quarter a year earlier. Q3 FY2026 was almost level on that basis: USD 11,279 million against USD 11,269 million in Q3 FY2025, a rise of 0.1% by our calculation.

Q4 FY2026 revenue of USD 10,972 million is our calculation. Nike's Form 10-K reports the fiscal year, so we subtract the nine months to 28 Feb 2026, reported in its Q3 FY2026 Form 10-Q.

For Q1 FY2027, Nike's release says the decline in NIKE Brand revenues came primarily from Greater China and Europe, Middle East and Africa, partly offset by growth in North America.^[2] The release also says Converse revenues fell, with declines across all territories.^[2] The Nike stock fundamentals page sets out revenue by fiscal year and the reasons Nike's filings give.

The revenue statement is in words only: the release attaches no dollar amount to it. The tax statement carries a condition: the release says the rate is subject to changes in earnings mix and discrete tax items.^[2]

The per-share range is for adjusted diluted EPS, a non-GAAP measure that Nike defines as diluted EPS excluding restructuring and severance charges.^[2] The release says the range excludes restructuring expenses related to Pace, the operating model transformation Nike announced with these results.^[2] Diluted EPS in the results table, USD 0.48 per share for Q1 FY2027, is the GAAP measure, so the two are different measures.

The release identifies its fiscal 2027 outlook and Pace as forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially.^[2] These are Nike's statements, not a StockFactsheet forecast.

The filings and releases we use contain no earlier fiscal 2027 outlook from Nike, so the guidance table has no earlier column to set these statements against. The release gives Nike's estimates of the Pace savings and charges, and the per-share charge excluded from this range; those amounts are in the release itself.^[2]

Over the four quarters to 31 Aug 2026, a window of 365 days, free cash flow summed to USD 2.1 billion by our calculation. That was cash from operations of USD 2.8 billion less capital expenditure of USD 676 million. Our four-quarter sums are USD 2.4 billion of dividends paid and USD 20 million of cash paid for repurchases of common stock, as the cash flow statement shows.

In both periods, free cash flow was less than dividends paid. In Q1 FY2027 it was negative USD 64 million against USD 610 million; over the four quarters it was USD 2.1 billion against USD 2.4 billion.

Nike's release says cash and short-term investments were lower than a year earlier, as cash generated by operations was more than offset by cash dividends and capital expenditures.^[2] Nike's Form 10-Q says no shares were repurchased in the quarter ended 31 Aug 2026.^[1]