Nike reported first-quarter fiscal 2027 earnings on October 1, 2026, posting revenue of $10.97 billion against Wall Street estimates of $10.85 billion. Diluted earnings per share came in at $0.72, well ahead of the $0.13 analysts had modeled — a beat driven largely by a one-time, non-operating item rather than core retail strength.
That outsized profit figure was tied to a $986 million benefit linked to the expected recovery of IEEPA tariffs following a U.S. court action, not to underlying sales momentum. Strip that out and the regional picture is more mixed. North America, Nike's largest market, grew 3% to $4.83 billion, narrowly missing StreetAccount's $4.88 billion estimate but extending a turnaround Nike has been building toward for several quarters. Greater China told the opposite story: revenue fell 12% on a reported basis and 17% currency-neutral, continuing a stretch of weakness in a market that was once one of Nike's fastest-growing.
Tariffs remain the bigger overhang. Nike CFO Matthew Friend told investors the company now expects roughly $1.5 billion in tariff-related costs tied to current U.S. trade policy, up from the $1 billion impact shared last quarter. Nike's own earnings release cited "lower average selling price, reflecting higher discounts and channel mix, as well as higher tariffs in North America" as pressure points on margin, even as top-line revenue beat expectations.
The results extend Nike's streak of beating consensus EPS estimates to seven straight quarters, a run that has helped stabilize investor confidence after a rocky 2024-2025 stretch tied to inventory gluts and slowing sneaker demand. The quarter's North America growth also lines up with a retail calendar heavy on signature product — Nike has pushed major releases across its Jordan, Kobe and Caitlin Clark lines this fall, including the Kobe Air Force 1 Low "Black/Purple Stardust" and the Air Jordan 1 Low OG "Howard University" — betting that retail-heavy fall releases can offset continued softness overseas.
Source: Yahoo Finance
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