Nike reported fourth quarter results on Tuesday that showed a huge jump in its earnings, thanks to the tariff refunds the Swoosh is expected to receive.
Net income at the Beaverton, Ore.-based company in the fourth quarter of fiscal 2026 was up 407 percent to $1.1 billion from $211 million at the same time last year. Diluted earnings per share in Q4 is 72 cents, this is up from 14 cents a share in the fourth quarter of 2025.
Nike stated that the jump in earnings was attributed to a 52 cents per share benefit related to the expected recovery of the IEEPA tariff refunds. Adjusted without this benefit, earnings per share for the quarter are 20 cents.
Net sales in the quarter tallied $10.97 billion, down 1 percent from $11.09 billion in the fourth quarter last year on a reported basis, and down 4 percent on a currency-neutral basis.
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The company’s fourth-quarter results beat Wall Street’s best guess. Analysts, on average, were expecting net sales of $10.86 billion and earnings per share of 13 cents, according to LSEG.
By business segment, the company said Nike brand’s fourth-quarter revenues were $10.7 billion, flat on a reported basis and down 3 percent on a currency-neutral basis, primarily due to declines in Greater China and EMEA, partially offset by growth in North America.
Wholesale revenues in Q4 were $6.6 billion, up 4 percent on a reported basis and up 1 percent on a currency-neutral basis, primarily due to growth in North America, partially offset by declines in Greater China.
Nike Direct revenues were $4.1 billion, down 7 percent on a reported basis and down 9 percent on a currency-neutral basis, due to a 12 percent decrease in Nike Brand Digital and a 7 percent decrease in Nike-owned stores.
Revenues for Converse in Q4 were $244 million, down 32 percent on a reported basis and down 34 percent on a currency-neutral basis, due to declines across all territories.
For the full fiscal year 2026, net income was $3.11 billion, down 3 percent from $3.22 billion in fiscal 2025. Diluted earnings per share was $2.10, a decrease of 3 percent from $2.16. Net sales for the full year tallied $46.4 billion, flat on a reported basis and down 2 percent on a currency-neutral basis.
Revenues for the Nike brand were $45.2 billion for the year, up 1 percent on a reported basis and down 1 percent on a currency-neutral basis, primarily due to declines in Greater China and EMEA, partially offset by growth in North America. Wholesale revenues were $27.5 billion, up 6 percent on a reported basis and up 4 percent on a currency-neutral basis.
The Nike Direct business segment saw revenues for the year of $17.7 billion, down 6 percent on a reported basis and down 8 percent on a currency-neutral basis, due to a 12 percent decrease in Nike Brand Digital and a 4 percent decrease in Nike-owned stores.
Revenues for Converse in fiscal 2026 were $1.2 billion, down 31 percent on a reported basis and down 32 percent on a currency-neutral basis, due to declines across all territories.
Elliott Hill, president and chief executive officer at Nike Inc, said in a statement that the company “took decisive actions” to strengthen its foundation and repositioned the business for long-term growth in fiscal 2026.
“We made meaningful structural improvements to lay the groundwork for our Sport Offense across our team culture, innovative product, brand strength, and how we serve consumers in our countries and cities,” Hill noted. “While we continue to face top-line headwinds, we’re encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential.”
Matthew Friend, executive vice president and chief financial officer at Nike Inc, added that the company’s fourth quarter results were in-line with its expectations, which demonstrate “financial discipline in an increasingly challenging operating environment, where sell-through remains challenged.”
“We are improving the health of our business, managing our product portfolio and investing in marketplace elevation, while adjusting our operating costs for greater efficiency over time,” Friend said.
No guidance was provided at the time of the earnings statement release.
