Nike stock falls after Q4 earnings beat as China sales drop 12%

Nike stock fell more than 4% after hours despite beating Q4 fiscal 2026 estimates with $10.97 billion in revenue and 20 cents adjusted EPS against Wall Street's $10.86 billion and 13-cent targets. With Nike stock down 30%+ year to date near an 11-year low, investors still question whether the turnaround can stick.

Nike reported after the closing bell on June 30, topping LSEG consensus on revenue and adjusted EPS, according to CNBC. Yet the reaction echoed a view Barron's raised ahead of the print: many investors still do not see a clear case for Nike, and one quarter may not change that.

Key Takeaways

• Nike posted $10.97 billion in Q4 revenue, down 1% year over year but above the $10.86 billion analysts expected.
• Adjusted EPS came in at 20 cents versus 13 cents expected; reported EPS was 72 cents, helped by a tariff refund.
• Greater China sales dropped 12% to $1.30 billion despite beating lowered revenue estimates.
• Gross margin rose 8.9%, largely from an expected $986 million tariff refund tied to a Supreme Court ruling on global duties.
• Nike stock slid more than 4% in extended trading despite the beat.

What did Nike report in Q4 fiscal 2026?

CNBC reported adjusted earnings of 20 cents per share versus 13 cents expected. Revenue reached $10.97 billion, down 1% from $11.10 billion a year earlier but ahead of consensus.

Reported net income jumped to $1.07 billion, or 72 cents per share, from $211 million, or 14 cents per share, in the prior-year quarter. For fiscal 2026, Nike earned $2.10 per share on $3.11 billion in net income.

Why did China and North America tell different stories?

Greater China revenue fell 12% to $1.30 billion, topping Wall Street's $1.24 billion forecast but underscoring ongoing regional pressure. North America revenue climbed 3% to $4.83 billion, slightly missing the $4.88 billion analysts expected.

CEO Elliott Hill said Nike is encouraged by progress in performance product and remains focused on consistent execution and improved profitability. He has previously warned the turnaround would not be linear.

How did tariffs affect Nike's margins?

Nike said gross margin increased 8.9%, largely because of an expected $986 million tariff refund after the Supreme Court struck down many of President Donald Trump's global duties. CNBC reported the refund contributed 52 cents to EPS, and analysts excluded that gain from adjusted expectations.

That split matters for Nike stock holders deciding whether underlying operations are improving or headline profits are inflated by one-time items.

Can Nike's premium pricing strategy revive the stock?

Ahead of the report, Yahoo Finance asked whether premium pricing could revive Nike stock as shares hovered near an 11-year low and fell more than 30% in 2026. Investors have sought proof Hill can reposition the brand after slumping sales, April layoffs of 1,400 roles, and a planned CFO transition to David Denton on Aug. 17.

Barron's skepticism looked prescient in after-hours trading: Nike beat estimates, yet the stock still dropped. For readers tracking net worth and wealth tied to mega-cap consumer brands, beats on paper are not the same as a restored bull case.

What should Nike stock investors watch next?

CNBC noted macro headwinds including tariffs and softer consumer confidence, which CFO Matt Friend flagged previously. Nike also drew World Cup advertising attention that outpaced rival Adidas on social media, though it is not an official sponsor.

The question is whether Hill can convert wholesale momentum and performance wins into sustained revenue growth—especially in China—before skepticism hardens. Until then, Nike stock may remain a show-me story one quarter cannot easily reset.