NIKE (NYSE:NKE) Releases Earnings Results, Beats Estimates By $0.06 EPS

NIKE (NYSE:NKE) posted its quarterly earnings results on Tuesday. The footwear maker reported $0.35 EPS for the quarter, beating the consensus estimate of $0.29 by $0.06, Briefing.com reports. NIKE had a net margin of 4.84% and a return on equity of 16.56%. The business had revenue of $11.28 billion during the quarter, compared to analyst estimates of $11.23 billion. During the same period in the previous year, the business posted $0.54 EPS. The company’s quarterly revenue was up .1% on a year-over-year basis.

Here are the key takeaways from NIKE’s conference call:

• The company intentionally removed unhealthy classic-footwear inventory, creating roughly a five-point headwind to reported results to improve marketplace health and revenue quality.
• Product momentum is strong—Nike Running grew over 20% this quarter, Global Football is being primed for the World Cup, and innovations like Nike Mind sold out (production doubled) indicating scalable demand for new platforms.
• Q3 financials showed revenues flat (down 3% currency-neutral), NIKE Direct down 7%, gross margin down ~130 bps (with ~300–650 bps tariff impacts in the U.S.), and EPS of $0.35.
• Management booked a $230 million severance charge (mainly supply chain and technology) to variabilize costs and streamline operations, with expected benefits beginning in fiscal 2027 and building through fiscal 2028.
• Management expects to complete its “Win Now” actions by year-end, expects revenues down low-single-digits over that horizon, anticipates gross-margin inflection in Q2 FY27, and will provide a longer-term outlook at an Investor Day this fall.

NIKE Stock Performance

NKE opened at $44.72 on Thursday. The company has a current ratio of 2.06, a quick ratio of 1.40 and a debt-to-equity ratio of 0.50. The business’s 50 day moving average is $59.27 and its 200-day moving average is $63.53. The stock has a market cap of $66.21 billion, a PE ratio of 29.62, a price-to-earnings-growth ratio of 2.78 and a beta of 1.31. NIKE has a twelve month low of $44.56 and a twelve month high of $80.17.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Monday, March 2nd were paid a $0.41 dividend. The ex-dividend date was Monday, March 2nd. This represents a $1.64 annualized dividend and a dividend yield of 3.7%. NIKE’s dividend payout ratio (DPR) is presently 96.47%.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q3 results topped expectations on the headline numbers — EPS beat and revenue roughly in line, showing some traction from product launches and discount-control efforts. NIKE Q3 Results
• Positive Sentiment: Management is taking deliberate actions (inventory cleanup, promotional discipline) intended to restore margins over time, which supports a recovery thesis if execution holds. Inventory / Turnaround Report
• Neutral Sentiment: Analyst reaction is mixed — several firms cut price targets or ratings, but a number of shops reaffirm buys or maintain mid/high targets, leaving a wide range of valuations and continued volatility. Analyst Reactions Summary
• Neutral Sentiment: Nike still has a strong balance sheet, dividend and ongoing buybacks (albeit reduced), which cushions downside risk compared with smaller peers. MarketBeat Company Snapshot
• Negative Sentiment: Soft guidance: management forecasted fiscal?Q4 revenue down (company gave a decline range), and signaled China sales could fall sharply next quarter — the guidance surprised investors and drove the sell?off. Reuters on Guidance & China
• Negative Sentiment: Greater China remains a pronounced weak spot; management said recovery will take longer (into fiscal 2027), creating uncertainty in Nike’s second?largest market. CNBC on China Weakness
• Negative Sentiment: Margin pressure persists (tariffs, promotions, inventory actions) and management expects margin recovery to be gradual — investors penalized the stock despite the EPS beat. Investopedia on Margins
• Negative Sentiment: Macro/geopolitical risk (Middle East conflict and higher oil) could further hurt global consumer discretionary demand and add downside risk to the recovery timeline. Fool: Macro Headwinds

Institutional Trading of NIKE

Several large investors have recently added to or reduced their stakes in NKE. J.Safra Asset Management Corp bought a new stake in NIKE during the 4th quarter valued at $29,000. Kemnay Advisory Services Inc. bought a new position in shares of NIKE in the fourth quarter worth $30,000. Prosperity Bancshares Inc acquired a new position in shares of NIKE during the fourth quarter valued at $32,000. Litman Gregory Wealth Management LLC acquired a new position in shares of NIKE during the fourth quarter valued at $32,000. Finally, Jessup Wealth Management Inc bought a new stake in shares of NIKE during the fourth quarter valued at about $38,000. 64.25% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. BNP Paribas Exane cut their target price on shares of NIKE from $35.00 to $23.00 and set an “underperform” rating on the stock in a report on Wednesday. UBS Group lowered their target price on NIKE from $58.00 to $54.00 and set a “neutral” rating for the company in a report on Wednesday. Guggenheim dropped their price target on NIKE from $77.00 to $74.00 and set a “buy” rating on the stock in a research report on Wednesday. Deutsche Bank Aktiengesellschaft cut their price target on NIKE from $54.00 to $51.00 and set a “hold” rating on the stock in a report on Wednesday. Finally, Sanford C. Bernstein restated a “buy” rating on shares of NIKE in a research report on Wednesday. Nineteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, NIKE currently has a consensus rating of “Moderate Buy” and an average target price of $64.43.

About NIKE

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).