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Get filing alertsNIKE Q3 revenues flat, EPS down 35% to $0.35 as tariffs compress gross margin 130 bps
Filed March 31, 2026 · Period ending March 31, 2026 · ~1 min read
Key Changes
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Q3 revenues $11.3B flat reported, down 3% currency-neutral; wholesale up 1% currency-neutral while NIKE Direct fell 7%, reflecting channel mix shift amid turnaround.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
Gross margin compressed 130 bps to 40.2% primarily from higher North America tariffs; diluted EPS $0.35 vs. $0.54 prior year, down 35%.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
Converse revenues plunged 35% reported (37% currency-neutral) to $264M with declines across all territories; segment swung to $40M EBIT loss profit prior year.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Operating overhead rose 3% to $2.9B on employee severance costs and unfavorable FX, partially offset by lower admin costs, signaling ongoing restructuring.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Effective tax rate 20.0% vs. 5.9% prior year; prior period benefited from one-time non-cash deferred tax benefit on foreign currency gains/losses.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR →
Summary
NIKE reported Q3 FY2026 results for the quarter ended February 28, 2026, showing flat reported revenues of $11.3 billion (down 3% currency-neutral) and diluted EPS of $0.35, down 35% from $0.54 in the prior-year quarter. The headline pressure came from a 130-basis-point gross margin contraction to 40.2%, driven primarily by higher tariffs in North America.
Wholesale revenues grew 1% currency-neutral while NIKE Direct fell 7% currency-neutral, reflecting the company's strategic pivot back to wholesale partners under CEO Elliott Hill's turnaround plan. The Converse segment deteriorated sharply, with revenues down 37% currency-neutral to $264 million and a swing to a $40 million EBIT loss from a $39 million profit in the prior year, with declines across all geographies.
Operating overhead rose 3% to $2.9 billion, driven by employee severance costs that signal ongoing restructuring efforts. The effective tax rate normalized to 20.0% from an unusually low 5.9% in the prior year, which had benefited from a one-time deferred tax benefit on foreign currency. Retail holders should watch how tariff headwinds and the Converse turnaround evolve in coming quarters, and whether the wholesale channel recovery can offset NIKE Direct weakness as the company executes its strategic reset.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
NIKE disclosed financial results for the fiscal quarter ended February 28, 2026 via press release.
Added in current filing · verify on EDGAR →
Today NIKE, Inc. issued a press release disclosing financial results for the fiscal quarter ended February 28, 2026.
NIKE announced its financial results for the third fiscal quarter of 2026, which ended February 28, 2026. The 8-K itself does not contain the actual financial figures; those are in the attached press release (Exhibit 99.1), which is not included in this filing body.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Third quarter revenues were $11.3 billion, flat on a reported basis and down 3 percent on a currency-neutral basis*
•Wholesale revenues were $6.5 billion, up 5 percent on a reported basis and up 1 percent on a currency-neutral basis
•NIKE Direct revenues were $4.5 billion, down 4 percent on a reported basis and down 7 percent on a currency-neutral basis
•Gross margin decreased 130 basis points to 40.2 percent
•Diluted earnings per share was $0.35
NIKE disclosed Q3 FY2026 results for the quarter ended February 28, 2026. Revenues were $11.3 billion, flat year-over-year on a reported basis but down 3% currency-neutral. Wholesale grew 5% reported (1% currency-neutral) while NIKE Direct fell 4% reported (7% currency-neutral). Gross margin contracted 130 basis points to 40.2%, primarily due to higher tariffs in North America. Diluted EPS was $0.35, down 35% from $0.54 in the prior-year quarter.
Added in current filing · view on EDGAR →
Gross margin decreased 130 basis points to 40.2 percent, primarily due to higher tariffs in North America.
Gross margin compressed 130 basis points to 40.2% from 41.5% in the prior-year quarter, driven primarily by higher tariffs in North America. This tariff headwind is also reflected in the inventory line, where the company noted increased product costs primarily due to higher tariffs.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 23, 2026 · How we verify