Nike (NYSE: NKE) reported quarterly results that exceeded Wall Street expectations on both earnings and revenue, but shares dropped more than 14% intraday Wednesday as investors focused on continued weakness in Greater China and declining margins.
The company posted fiscal third-quarter 2026 earnings of $0.35 per share on revenue of $11.28 billion, surpassing analyst estimates of $0.30 per share and $11.23 billion in revenue.
However, performance in Greater China—a key market accounting for roughly 15% of total revenue—remained under pressure. Sales in the region fell 7% year over year to $1.62 billion, marking the seventh consecutive quarter of decline.
Gross margin also contracted, declining 130 basis points to 40.2%, primarily due to tariff-related pressures in North America.
The results came as investors awaited tangible progress from CEO Elliott Hill’s turnaround strategy. Nike has been facing ongoing challenges, including declining sales in China, tariff-driven margin headwinds, and intensifying competition from rivals such as China-based Anta and Li Ning, Switzerland’s On, and Deckers’ Hoka brand.
