Nike Earnings Beat But Revenue Misses Estimates Amid High-Single-Digit Decline
Nike (NKE) released its Q1 earnings report on October 01, 2026. The company delivered a GAAP EPS of $0.48, exceeding estimates by $0.04. However, revenue declined 4.2% year-over-year to $11.21 billion, falling short of expectations by $110 million.
The company's fiscal 2027 outlook anticipates a high-single-digit revenue decline and adjusted diluted EPS below consensus, putting pressure on shares in after-hours trading. Nike's dividend yield stands at a robust 4.76%, supported by a 3-year dividend growth rate of 7.1%, though the payout ratio is relatively high at 72%, raising questions about long-term sustainability.
The stock is significantly undervalued with a GF Value of $72.64 versus the current price of $35.15, indicating a 51.6% discount. The company holds a solid GF Score of 64/100, reflecting balanced financial strength and profitability amid growth and momentum challenges.