Nike Stock (NKE) Slumps After Fiscal Q2 2026 Earnings: China Weakness, Tariff-Driven Margin Pressure, and Updated Wall Street Forecasts
Nike shares dropped 10% in after-hours trading despite beating Q2 revenue and EPS estimates, as gross margin fell to 40.6% and China sales slid 17%. Net income dropped 32% to $0.8 billion. Wholesale revenue rose 8%, but NIKE Direct fell 8%. Adidas and Puma shares also slipped as investors reacted to Nike’s margin pressure.