NIKE (NYSE:NKE) Releases Earnings Results, Beats Expectations By $0.03 EPS

NIKE (NYSE:NKE) posted its quarterly earnings data on Tuesday. The footwear maker reported $0.35 EPS for the quarter, topping the consensus estimate of $0.32 by $0.03, Briefing.com reports. NIKE had a return on equity of 18.43% and a net margin of 5.43%.The firm had revenue of $11.28 billion during the quarter, compared to analyst estimates of $11.23 billion. During the same period in the prior year, the business posted $0.54 EPS. NIKE’s revenue was up .1% on a year-over-year basis.

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 Price Performance

NYSE:NKE opened at $52.83 on Wednesday. The business’s 50-day simple moving average is $59.68 and its two-hundred day simple moving average is $63.66. NIKE has a 52 week low of $50.95 and a 52 week high of $80.17. The stock has a market cap of $78.21 billion, a PE ratio of 31.08, a P/E/G ratio of 2.69 and a beta of 1.27. The company has a quick ratio of 1.40, a current ratio of 2.06 and a debt-to-equity ratio of 0.50.

NIKE Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Monday, March 2nd will be issued a dividend of $0.41 per share. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $1.64 dividend on an annualized basis and a yield of 3.1%. NIKE’s dividend payout ratio (DPR) is currently 96.47%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on NKE. Daiwa Securities Group cut their price target on NIKE from $75.00 to $61.00 in a report on Tuesday, December 23rd. Needham & Company LLC downgraded NIKE from a “buy” rating to a “hold” rating in a research note on Thursday, January 8th. Stifel Nicolaus set a $65.00 price objective on NIKE and gave the company a “hold” rating in a research report on Friday, December 19th. BTIG Research cut their price objective on NIKE from $100.00 to $90.00 and set a “buy” rating for the company in a research note on Thursday, March 19th. Finally, Barclays raised shares of NIKE from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $64.00 to $73.00 in a report on Wednesday, March 11th. Twenty-two analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $73.20.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q3 beat on top and bottom lines — Nike reported revenue ~ $11.3B and EPS that beat consensus, with management citing better discount control and product launches that helped sales outperform expectations, supporting near-term confidence in the turnaround. Nike third-quarter sales beat estimates
• Positive Sentiment: Analyst and shop-floor endorsement — Several analysts and boutiques highlighted product innovation and progress on the “Win Now” initiatives, and some firms reaffirmed bullish views, giving the stock support after the print. Telsey Advisory: Product innovation key to return to growth
• Neutral Sentiment: Options and positioning amplified moves — Pre-earnings options flow showed upside-heavy positioning into the release, which can magnify intraday moves as traders adjust exposures after the print. Nike options chain shows upside-heavy positioning into earnings
• Neutral Sentiment: Macro/trade flows supporting a bounce — Some broader market buying into quarter-end and hopes around geopolitical stability boosted risk appetite, helping cyclical names like Nike. Month of March Goes Out Like a Bull
• Negative Sentiment: China remains a clear headwind — Management and reporting highlighted continued weak demand and execution issues in China, which pressured profit and investor confidence given China’s outsized long-term importance. Nike Third-Quarter Profit Declines as Weak Demand in China Drags On
• Negative Sentiment: Margin and cash-flow pressures noted — Reports and filings show gross-profit and operating-profit declines y/y, tariff-related margin pressure and weaker operating cash flow versus prior years, which leave longer-term improvement questions unanswered for some investors. Nike’s China stumble exposes execution gaps

Institutional Trading of NIKE

Several institutional investors have recently made changes to their positions in the business. J.Safra Asset Management Corp bought a new stake in NIKE during the 4th quarter valued at approximately $29,000. Kemnay Advisory Services Inc. bought a new position in NIKE in the 4th quarter worth approximately $30,000. Prosperity Bancshares Inc bought a new position in NIKE in the 4th quarter worth approximately $32,000. Litman Gregory Wealth Management LLC purchased a new stake in NIKE during the 4th quarter valued at approximately $32,000. Finally, Jessup Wealth Management Inc purchased a new stake in NIKE during the 4th quarter valued at approximately $38,000. Hedge funds and other institutional investors own 64.25% of the company’s stock.

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).