Nike’s turnaround faces a test before its Oct. 1 fiscal Q1 2027 report. FY2026 revenue was nearly flat at $46.4 billion; supply-chain changes are expected to lift FY2027 margins, but management sees no meaningful improvement in operating conditions over the next six months.
Nike ended fiscal 2026 with $7.6 billion in cash and equivalents and generated $2.9 billion in operating cash flow during the year. In Q4, fewer cancellations and reduced customer discounts helped gross margin, excluding the tariff-recovery benefit, come in above management’s earlier guidance.
Sales were soft across international markets, sportswear and direct-to-consumer channels. Greater China revenue fell 17% year over year on a currency-neutral basis in Q4 FY2026; amid weaker consumer spending and competition from Li Ning and Anta, management moved to reduce inventory and supplies there. 13F data showed hedge funds holding Nike fell from 71 in the previous quarter to 56 by Q2 2026; short interest was 6.29%.
