Nike earned $3.1 billion of net income in fiscal 2026 (the year to 31 May 2026) on $46.4 billion of revenue, a net margin of 6.7%. That was down 3% from $3.2 billion in fiscal 2025 and a little over half the $5.7 billion it earned in fiscal 2024. Its own profit measure, EBIT, was $3.85 billion in fiscal 2026, and most of it came from one segment: North America.
In fiscal 2026 Nike kept $19.9 billion of gross profit on $46.4 billion of revenue, a 42.9% gross margin, up 20 basis points on fiscal 2025 but below 44.6% in fiscal 2024.
02
Marketing and overhead
Selling and administrative expense was $16.1 billion in fiscal 2026, 34.7% of revenue: $4.8 billion of demand creation (marketing and sports deals) and $11.4 billion of operating overhead.
03
Geographies earn, the centre spends
The four Nike Brand geographies earned $10.5 billion of EBIT in fiscal 2026. Global Brand Divisions cost $4.6 billion and Corporate $2.0 billion, so total EBIT was $3.85 billion.
04
Tax takes a larger share
The effective tax rate rose to 20.3% in fiscal 2026 from 17.1% in fiscal 2025, so net income fell 3% even though EBIT rose 2%.
North America EBIT rose 14% to $5.4 billion in fiscal 2026, helped by wholesale revenue up 14% as Nike expanded distribution with retail partners. NIKE Direct revenue fell 6% in the region, with digital sales down 10% (Nike Form 10-K, 2026).
Greater China and Converse drag
Greater China EBIT fell 20% to $1.3 billion in fiscal 2026 and its digital sales fell 29%. Converse EBIT fell to $18 million from $240 million as its revenue dropped 31% to $1.2 billion (Nike Form 10-K, 2026).
Pace: a cost programme
With first-quarter fiscal 2027 results on 1 October 2026, Nike announced Pace: a new campus in India, a move to three geographies and a leaner organisation. It expects about $2.5 billion of cumulative savings through fiscal 2031 and about $1.0 billion of pre-tax charges (Nike Q1 fiscal 2027 release, 2026).
First quarter of fiscal 2027
In the quarter to 31 August 2026 revenue fell 4% to $11.2 billion, gross margin rose 60 basis points to 42.8% and net income was $0.7 billion, down 2%; Nike expects fiscal 2027 revenue to decline high-single digits (Nike Q1 fiscal 2027 release, 2026). Its fiscal 2026 10-K also lists the use of AI by consumers, retailers and digital platforms as a competitive risk.
Where Nike's EBIT came from, fiscal 2026
North America
EBIT, fiscal 2026$5,376M
Change vs fiscal 2025+14%
Europe, Middle East & Africa
EBIT, fiscal 2026$2,417M
Change vs fiscal 2025-6%
Asia Pacific & Latin America
EBIT, fiscal 2026$1,387M
Change vs fiscal 2025-9%
Greater China
EBIT, fiscal 2026$1,278M
Change vs fiscal 2025-20%
Converse
EBIT, fiscal 2026$18M
Change vs fiscal 2025-93%
What it means for you
Read Nike's profit by segment EBIT, not by revenue: North America earned more than the other three geographies combined in fiscal 2026.
Watch gross margin and demand creation together; small moves in either swing EBIT on a $46 billion revenue base.
Track the Pace savings against the charges each quarter, since the $2.5 billion is an estimate through fiscal 2031.
If you sell through Nike's wholesale channel, note that its partners regained share of revenue as NIKE Direct shrank.
Compare net income with EBIT: in fiscal 2026 a higher tax rate turned EBIT growth into a net income decline.
The Business Engineer lens
Nike’s profit now depends less on selling more and more on what it costs to get each sale: wholesale partners, marketing and overhead decide the margin. The Business Engineer view is that brands with scale win when they cut the cost of distribution and decision-making, which is the stated aim of Pace.
Revenue fell from $51.4 billion in fiscal 2024 to $46.3 billion in fiscal 2025 and gross margin fell from 44.6% to 42.7%, cutting net income from $5.7 billion to $3.2 billion; it slipped to $3.1 billion in fiscal 2026.
North America, with $5.4 billion of EBIT in fiscal 2026, more than EMEA, Greater China and Asia Pacific & Latin America combined.
How is Nike doing in fiscal 2027?
In the first quarter to 31 August 2026 revenue fell 4% to $11.2 billion and net income was $0.7 billion, down 2%; Nike expects full-year revenue to decline high-single digits.
The complete explainer, cleaned up and reformatted for mobile.
In short
Nike earned $3.1B of net income in fiscal 2026, down 3% on fiscal 2025 and 45% below fiscal 2024’s $5.7B. EBIT, Nike’s own profit measure, was $3.9B. North America earned $5.4B of segment EBIT; Converse earned $18M.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Nike profits represent the net earnings generated by Nike Inc. after deducting all operating expenses, costs of goods sold, taxes, and interest from total revenue. Nike’s profitability serves as a key financial metric reflecting the company’s operational efficiency, market dominance, and ability to monetize its brand portfolio across footwear, apparel, equipment, and subsidiary brands like Jordan Brand and Converse.
Nike in charts
North America earned $5.4B of EBIT; Converse just $18M. Source: Nike Form 10-K for fiscal 2026 (year to 31 May 2026, SEC EDGAR). EBIT is Nike's own measure (earnings before interest and taxes). Analysis by The Business Engineer.Nike at a glance: $46.4B of revenue and $3.1B of net income in fiscal 2026. Source: Nike Form 10-K for fiscal 2026 (year to 31 May 2026, SEC EDGAR); Nike Q1 fiscal 2027 earnings release (Form 8-K, SEC EDGAR). YoY calculated. Analysis by The Business Engineer.
The Business Engineer view: where Nike’s profit comes from
Nike’s profit is concentrated: North America produced $5.4B of segment EBIT in fiscal 2026, more than EMEA, Greater China and APLA combined ($5.1B), before $4.6B of Global Brand Divisions and $2.0B of corporate costs (Nike FY2026 10-K).
The drag is easy to see: Greater China EBIT fell 20% and Converse almost broke even. Profit recovery depends on full-price selling, not volume. See Nike revenue breakdown and Converse.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
