Nike reported revenue of $11.2 billion for the first quarter of its 2027 fiscal year, down 4 percent on a reported basis, and said it expects revenue to decline by a high-single-digit percentage across fiscal 2027. The results, published on October 1, 2026, cover the quarter that ended August 31, 2026.
The quarterly figure is a completed result, while the high-single-digit decline is a forecast for the whole fiscal year that the quarter belongs to. Greater China, where revenue fell 22 percent, was the weakest region in the release.
An $11.2 billion quarter, down 4 percent reported and 5 percent in constant currency
Nike’s first-quarter release states that revenues were $11.2 billion, down 4 percent on a reported basis. On a currency-neutral basis, which strips out the effect of exchange rates, the decline was 5 percent. The two percentages measure the same quarter in different ways, and the release carries both.
Within the total, the Nike brand accounted for $10,952 million, down 4 percent, and Converse for $263 million, down 28 percent. The release reports diluted earnings per share of $0.48 and net income of $0.7 billion, down 2 percent.
Greater China down 22 percent while North America grew 2 percent
The regional table in the release shows a split quarter. North America brought in $5,127 million, up 2 percent. Europe, the Middle East and Africa reported $3,176 million, down 5 percent. Asia Pacific and Latin America came to $1,463 million, down 2 percent. Greater China, at $1,180 million, fell 22 percent, the steepest drop of the four. By this publication’s arithmetic from the table, North America supplied roughly 46 percent of the quarter’s revenue and Greater China about a tenth, so the 22 percent fall in Greater China weighed on the total more than the 2 percent gain in North America lifted it.
Chief Executive Elliott Hill addressed the pattern in the release. He said the Sport Offense is driving “measurable progress” in the performance business and that Pace was introduced to scale that momentum across the company, while “more work” remains in NIKE Sportswear, Jordan Brand and Greater China, where he said Nike is taking “deliberate actions” to strengthen the businesses for the long term.
What the fiscal 2027 outlook says, and what it leaves unstated
The outlook sits in the company’s release rather than in a quote from one executive. It reads: “Revenues are expected to decline high-single digits in fiscal 2027.” The sentence covers the full fiscal year, not the next quarter, and the passage read gives no numeric range for what “high-single digits” means. The release also says the effective tax rate for fiscal 2027 is expected in the mid-20 percent range, and that adjusted diluted earnings per share is expected between $1.15 and $1.35, a range that excludes about $0.15 of restructuring expenses tied to Pace.
Chief Financial Officer Dave Denton is the executive quoted on the quarter itself. He said first-quarter results were “consistent with” the company’s expectations, “supported by improved gross margin and disciplined cost management.” The release attributes no separate guidance statement to him, and it does not restate an earlier forecast, so this article describes the outlook as the company’s current expectation and not as a revision.
Gross margin rose 60 basis points while sales shrank
Gross margin expanded 60 basis points to 42.8 percent, which the full text of the release as reproduced by Stock Titan attributes primarily to lower warehousing and logistics costs. Net income fell only 2 percent against the 4 percent drop in revenue, so profit shrank more slowly than sales over the quarter.
Earnings per share are reported on a diluted basis, $0.48 for the quarter. The release does not present an adjusted figure for the quarter, so the $0.48 is not labelled adjusted here, and the adjusted range applies only to the full-year outlook.
Pace: about $2.5 billion in savings against about $1.0 billion in charges
Pace is the restructuring program Hill cited. Nike says it expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031. The release puts pre-tax charges through fiscal 2031 at about $1.0 billion, mostly severance, with about $0.3 billion recognized in fiscal 2027.
Reported results carry the restructuring cost, while the adjusted range of $1.15 to $1.35 for the full year leaves out about $0.15 of it, so the two earnings measures are not interchangeable.
Inventory of $7.8 billion and cash of $8.4 billion at quarter-end
The balance sheet figures round out the quarter. Inventory stood at $7.8 billion, down 3 percent, and cash and short-term investments at $8.4 billion. The release does not attach a forecast to either figure.
The release’s own sentence on the outlook is the controlling statement for the forecast: Nike expects fiscal 2027 revenue to decline high-single digits, after a first quarter that fell 4 percent as reported.
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Drafted with the help of AI, with each revenue, margin and outlook figure compared against Nike’s own release.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
