NIKE's Q2 FY26 revenue was flat as Direct sales fell 8% and margins contracted.

NIKE reported fiscal Q2 2026 revenue of $12.4 billion, up 1% year-over-year, and diluted EPS of $0.53, a 32% decrease. The results were marked by a significant divergence in channel performance, with an 8% decline in NIKE Direct sales contrasting with an 8% increase in Wholesale revenue. Gross margin fell 300 basis points to 40.6%.

Key Highlights

• Gross margin contracted significantly, falling 300 basis points to 40.6%, which the company attributed primarily to higher tariffs in North America.
• The company's strategic NIKE Direct channel reported an 8% decline in revenue to $4.6 billion, driven by a 14% decrease in digital sales.
• Sales in Greater China fell 17% to $1.4 billion, while revenue from the Converse brand plunged 30% to $300 million, indicating broad weakness.