Nike reported fiscal fourth-quarter earnings of 72 cents per diluted share, a figure that included a 52-cent one-time benefit tied to the anticipated recovery of import tariffs ruled unconstitutional by the US Supreme Court in February – without which the underlying result was 20 cents per share, still above the Wall Street consensus of 12 to 13 cents on revenue of $10.97 billion. FinancialMediaGuide dissects the quality of the beat, finding that while the adjusted result is a genuine operational improvement over expectations, the headline number obscures a business still under real pressure in its two most important growth markets.
The $986 million tariff recovery pushed gross margin up approximately 900 basis points to 49.2% for the quarter. Strip it out and underlying gross margin was approximately 40.2% – roughly flat year-over-year and well below the levels Nike posted during its peak years. Revenue of $10.97 billion was down 1% on a reported basis and 4% on a currency-neutral basis.
Greater China is the most alarming regional story. Revenue fell 17% on a currency-neutral basis in Q4, accelerating a decline that has persisted across multiple quarters and resisting multiple attempts at local product and marketing adjustment. Converse is deteriorating faster still – down 32% in Q4 and 31% for the full fiscal year, across all territories. FinancialMediaGuide tracks Nike’s China trajectory against broader consumer spending trends in the market, finding that the brand faces a structural headwind from domestic Chinese competitors that no seasonal restocking cycle or marketing campaign can reverse in the near term.
North America is the one geography posting consistent growth, with Q4 revenue up 3%. The company’s “Win Now” strategic framework, which has shifted emphasis back toward wholesale partners and away from Nike Direct, is gaining some traction in that region. Wholesale revenues rose 4% while Nike Direct fell 7%, reflecting the deliberate channel rebalancing.
For the full fiscal year ending May 31, 2026, Nike reported revenue of $46.4 billion – flat on a reported basis and down 2% on a currency-neutral basis. Full-year net income was $3.1 billion, down 3%, with diluted earnings per share of $2.10. The company ended the quarter with $9 billion in cash, cash equivalents, and short-term investments, and returned approximately $609 million to shareholders. Financial Media Guide places those full-year metrics against the stock’s 35%-plus decline in 2026, finding that the market has been pricing in the structural challenges – China deterioration, Converse implosion, Direct-channel reset – well ahead of quarterly results confirming them.
CEO Elliott Hill, in his statement, acknowledged continued top-line headwinds. CFO Matthew Friend was blunter on the call, warning that sell-through remains under pressure and that conditions are unlikely to improve through at least the first half of fiscal 2027. Q1 FY2027 revenue is guided down low to mid single digits, with Q2 decelerating further.
Shares fell approximately 4% in after-hours trading before paring part of the decline, settling near $40. The stock has declined more than 35% in 2026, a drop that has taken Nike from a position of brand premium to one where valuation support requires evidence of a genuine recovery – not a tariff windfall quarter. FinancialMediaGuide stresses that the fundamental test for Nike’s turnaround is not whether it can beat a depressed quarterly consensus, but whether the Win Now framework can restore sell-through velocity in North America before Greater China’s decline compounds into a problem too large for any domestic recovery to offset.
Inventory at $7.5 billion was flat year-over-year – a stabilisation after previous quarters of elevated stock, but not yet a lean position that would signal restored pricing power. The tariff refund, welcome as a cash event, will not recur. What comes next is the unvarnished operating picture.
