01.04.2026 11:00

Nike’s fiscal‑third‑quarter performance beat analysts’ expectations, yet the market responded sharply to a bleak outlook. Revenue edged up to $11.28 billion, matching forecasts, while adjusted earnings per share rose to $0.35, surpassing the $0.31 consensus. The company’s core brand generated $11.01 billion in sales, lifting gross margin to 40.2 % but down 1.3 percentage points from the prior year due to higher tariff costs in North America. Shares slipped more than 9 % in pre‑market trading, settling near $47.88.

Looking ahead, Nike’s fourth‑quarter guidance proved far more cautious than anticipated. Management now projects a 2 %–4 % year‑over‑year decline in revenue, a stark contrast to the 1.9 % increase expected by analysts, and the full‑year outlook calls for a low single‑digit contraction. Chief Financial Officer Matt Friend emphasized that tariff‑related pressures would continue to weigh on margins, contributing to a 35 % drop in quarterly net income, which fell to $520 million from $794 million a year earlier.

The geographic challenges were highlighted by a 7 % slide in Greater China sales, which slipped to $1.62 billion—the seventh consecutive quarterly dip in that market. Executives warned that the segment could contract by roughly 20 % in the next quarter if current trends persist. Inventory levels remain elevated at $7.49 billion, underscoring the need for tighter supply‑chain management.

Overall, while Nike posted numbers that exceeded short‑term forecasts, the pessimistic revenue outlook and mounting headwinds in key regions drove investor sentiment downward, prompting a pronounced reaction in the stock market. The company’s ability to navigate tariff‑driven cost pressures and revitalize growth in China will be closely watched by analysts and shareholders alike.