NIKE Stock (NYSE: NKE) Drops After Q2 FY2026 Earnings: Tariffs Squeeze Margins, China Weakness Persists, Analysts Reset Forecasts
Nike shares fell 11% Friday after the company forecast continued margin pressure and slow recovery in China, despite reporting Q2 revenue of $12.4 billion and EPS of $0.53, both ahead of expectations. Gross margin dropped to 40.6%, hit by higher tariffs. Net income fell 32% year over year. Wholesale revenue rose 8%, but Nike Direct sales dropped 8%.