NIKE Inc. posted mixed results for the second quarter of fiscal 2026, reporting revenues of USD12.4 billion and diluted earnings per share of USD0.53, as the sportswear giant pushed forward with its turnaround amid margin pressure and uneven demand.
For the quarter ended November 30, 2025, revenues rose 1 percent on a reported basis and were flat on a currency-neutral basis. Growth was led by wholesale, which climbed 8 percent to USD7.5 billion on strong demand in North America. That gain helped offset continued weakness in direct-to-consumer channels, where NIKE Direct revenues fell 8 percent to USD4.6 billion amid a sharp slowdown in digital sales.
Gross margin declined 300 basis points to 40.6 percent, largely due to higher tariffs in North America. Net income dropped 32 percent to USD0.8 billion, reflecting both margin pressure and ongoing investments tied to the company’s strategic reset.
President and chief executive officer Elliott Hill said the company is in the “middle innings” of its comeback, with fiscal 2026 focused on executing its “Win Now” priorities. These include realigning teams, strengthening partner relationships, rebalancing the product portfolio, and sharpening Nike’s sport-driven offense to support long-term growth.
Chief financial officer Matthew Friend said Nike delivered modest top-line growth while managing headwinds from repositioning the business in a volatile operating environment. He added that the company is making the necessary shifts to restore portfolio health and position the brand for a full recovery.
By segment, NIKE Brand revenues increased 1 percent to USD12.1 billion, buoyed by North America but partly offset by declines in Greater China and Asia Pacific and Latin America. Converse revenues fell sharply, dropping 30 percent to USD300 million across all territories.
On the cost side, selling and administrative expenses edged up 1 percent to USD4.0 billion, while operating overhead fell 4 percent. Demand creation spending rose 13 percent as Nike stepped up brand and sports marketing efforts.
