TLDR
- Nike stock dropped as much as 9% in premarket trading after fiscal Q1 results.
- Revenue came in at $11.21 billion, below the $11.33 billion analysts expected.
- Earnings per share beat estimates at $0.48, topping the $0.44 forecast.
- Nike plans job cuts as part of a new cost-cutting operating model called Pace.
- The company expects fiscal 2027 revenue to decline in the high single digits.
Nike stock fell close to 9% in premarket trading Friday. The drop came after the company posted fiscal first quarter results that missed on revenue despite beating on earnings.
Revenue landed at $11.21 billion. That’s below the $11.33 billion Wall Street had penciled in, and it marks a 4% decline from a year earlier.
Earnings per share came in at $0.48, down slightly from $0.49 last year but still ahead of the $0.44 analysts expected. Gross margin expanded 60 basis points to 42.8%, helped by lower warehousing and logistics costs.
NIKE $NKE Q1’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $11.21B (Est. $11.32B) 🔴; -4% YoY
🔹 EPS: $0.48 (Est. $0.43) 🟢; -2% YoY
🔹 Gross Margin: 42.8% (Est. 42.2%) 🟢
🔹 Net Income: $0.7B; -2% YoYFY27 Guide:
🔹 Adj. EPS: $1.15-$1.35 (Est. $1.65) 🔴
🔹 Revenue: Decline high-single… pic.twitter.com/xtWUF2TucH— Wall St Engine (@wallstengine) October 1, 2026
The weakness was spread across the business. Nike Direct revenue fell 8%, and both Greater China and EMEA posted declines.
What Nike is changing
Alongside the results, Nike announced a new operating model called Pace. The plan is built around supply-chain changes, a new campus in India, and a shift to three geographic regions.
Nike expects the restructuring to deliver about $2.5 billion in cumulative savings through fiscal 2031. It will also cost the company roughly $1 billion in pretax charges over that same stretch, including about $300 million in fiscal 2027.
The changes will mean fewer jobs at Nike. CEO Elliott Hill addressed the cuts directly in a letter to employees.
“This work will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty,” Hill wrote. Decisions on which roles are affected won’t begin until calendar year 2027.
What comes next
Nike’s outlook for the rest of the fiscal year wasn’t exactly cheerful either. The company guided for revenue to decline in the high single digits in fiscal 2027.
Adjusted earnings per share guidance came in between $1.15 and $1.35, excluding about $0.15 of restructuring costs. Stifel analysts wrote they’re “not ready to call a bottom yet” with the stock trading at 28 times forward earnings at the midpoint of that guidance.
CFRA analyst Zach Warring, who rates the stock a Buy, had a slightly different read. He called it “a quarter you’d expect from a new CEO three or four quarters in, but not two years in.”
Warring added that valuations and expectations have been reset, which could let Nike start working on its slower regions, including Greater China and Europe.
This isn’t an isolated bad patch for Nike either. Dick’s Sporting Goods warned in late August that Nike’s heavy discounting on slow-moving product was hurting its own business.
Soccer star Kylian Mbappé also ended his sponsorship deal with Nike last month. He’s since signed with Swiss rival On.
Nike was also recently dropped from the S&P 100 after nearly two decades in the index. Short interest on the stock sits above 7% of its float.
Friday’s report was the first earnings release under new CFO Dave Denton, who joined Nike after a stint at Pfizer.
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