Earnings call transcript: Nike posts Q1 2026 EPS beat, shares sink on weak sales

Nike reported Q1 fiscal 2027 earnings that beat profit expectations with earnings per share at $0.48, above the forecasted $0.44. However, revenue of $11.21 billion fell short of the $11.35 billion estimate. The stock fell 6.24% in after-hours trading as investors focused on weak sales, particularly in Greater China, which dropped 26%.

Management explained that revenue pressure will continue as they reshape businesses like Nike Sportswear, Jordan Brand, and Greater China. Nike's gross margin improved to 42.8%, driven by supply-chain actions and lower SG&A expenses. The company expects fiscal 2027 revenue to decline in the high single-digit range, and adjusted EPS guidance is between $1.15 and $1.35, excluding about $0.15 of impact from the Pace restructuring program.