NKE beats Q2 FY26 estimates, but EPS drops and digital and China weakness pressure margins and outlook.
Friday could be a wild day on Wall Street with four types of options expiring on the same day, a four-times-year occurrence known as “quadruple witching” day. Nike shares were down sharply in premarket trading after the sportswear giant warned sales would slide this quarter.
Nike fell 10% despite beating estimates, showing that investors care less about short-term EPS beats and more about margins, China's weakness, and the lack of a credible turnaround narrative. Revenue held up thanks to wholesale, but the shift came at the cost of profitability, with gross margins down as tariffs and promotions continue to weigh on earnings power. Valuation remains demanding, with investors pricing a sharp earnings rebound driven mostly by cost efficiency, a scenario that looks optimistic given current execution risks.
NIKE, Inc. (NKE) Q2 2026 Earnings Call Transcript
While the top- and bottom-line numbers for Nike (NKE) give a sense of how the business performed in the quarter ended November 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Nike (NKE) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.78 per share a year ago.
NKE's digital engine still engages consumers, but fewer promotions have hit traffic and sales, leaving the Direct channel under pressure.
Nike will report fiscal second-quarter earnings after the bell Thursday. The sneaker giant is just over a year into CEO Elliott Hill's tenure, focusing on turning around the company and returning it to profitable growth.
NKE's scale-driven reset and sport-led strategy contrast with ONON's premium focus as both navigate growth, margins and shifting demand.
Nike is set to post quarterly earnings after the market closes Thursday, with traders anticipating a big move from athletic apparel maker's stock following the results.
NKE heads into Q2 earnings with declining sales and margins expected, even as its ???Win Now?
NKE heads into Q2 earnings with expected y/y revenue and EPS declines, as margin pressure and China weakness test its "Win Now" turnaround.