NIKE, Inc. stock research
FY2025 Q4
NIKE (NKE) Gross Margin — Quarter Ended May 31, 2025
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially but lower year-over-year. Gross margin weakened versus both periods, reflecting that the decline in gross profit outpaced the decline in revenue.
Gross margin takeaway
Quarter ended May 31, 2025 · FY2025 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially but lower year-over-year. Gross margin weakened versus both periods, reflecting that the decline in gross profit outpaced the decline in revenue.
- The strongest observable driver is the relationship between revenue and cost of revenue: revenue declined while cost of revenue remained unchanged sequentially, directly compressing gross profit and margin. This indicates that the cost structure did not adjust proportionally to the lower revenue level.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened. Compared to the same quarter one year earlier, all three metrics—revenue, gross profit, and cost of revenue—were lower, with gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.3%
Gross profit
$4.5B
Revenue
$11.1B
Cost of revenue
$6.6B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-4.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 31, 2024 | $11.6B | $5.3B | $6.3B | 45.4% |
| Nov 30, 2024 | $12.4B | $5.4B | $7.0B | 43.6% |
| Feb 28, 2025 | $11.3B | $4.7B | $6.6B | 41.5% |
| May 31, 2025 | $11.1B | $4.5B | $6.6B | 40.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2025
-1.2 pts
Year-over-year change
May 31, 2024
-4.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue and cost of revenue: revenue declined while cost of revenue remained unchanged sequentially, directly compressing gross profit and margin. This indicates that the cost structure did not adjust proportionally to the lower revenue level.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened. Compared to the same quarter one year earlier, all three metrics—revenue, gross profit, and cost of revenue—were lower, with gross margin also weakened.
Monitor whether cost of revenue can be reduced in line with revenue trends to prevent further margin compression.