Nike Inc. edged past Wall Street's quarterly revenue estimates on Tuesday, as strong demand in North America and China helped offset challenges in other regions. The world's largest sportswear maker reported revenue of $12.6 billion for the fiscal fourth quarter ended May 31, 2026, compared with analysts' average estimate of $12.5 billion, according to Refinitiv data.
Earnings and key metrics
Adjusted earnings per share came in at $1.01, beating the consensus estimate of $0.98. Net income rose to $1.5 billion from $1.3 billion a year earlier. Gross margin improved to 45.2% from 44.8%, driven by higher average selling prices and lower freight costs, partially offset by increased promotions.
"Our results reflect the strength of the Nike brand and our deep connection with consumers," said Nike CEO John Donahoe in a statement. "We continue to navigate a dynamic environment while investing in innovation and digital transformation."
Regional performance
Revenue in North America, Nike's largest market, grew 5% to $5.4 billion, fueled by strong sales of lifestyle footwear and apparel. In Greater China, revenue increased 8% to $2.1 billion, recovering from earlier pandemic-related disruptions. However, revenue in Europe, the Middle East and Africa declined 2% to $3.3 billion, and Asia Pacific and Latin America saw a 1% drop to $1.8 billion.
Direct-to-consumer sales rose 10% to $5.6 billion, while wholesale revenue was flat at $6.7 billion. Digital sales increased 12%, accounting for 28% of total revenue.
Outlook and market reaction
For the current fiscal first quarter, Nike expects revenue to grow in the low single digits, with gross margin expanding slightly. The company maintained its full-year revenue growth forecast of mid-single digits.
Shares of Nike rose 2.3% in after-hours trading following the earnings release. The stock has gained about 12% year-to-date, outperforming the broader market.
