NIKE, Inc. stock research
FY2026 Q1
NIKE (NKE) Gross Margin — Quarter Ended Aug 31, 2025
Revenue increased compared to the prior quarter, while gross profit also rose, leading to an improvement in gross margin. Cost of revenue grew at a slower pace than revenue, supporting the margin expansion.
Gross margin takeaway
Quarter ended Aug 31, 2025 · FY2026 Q1
Revenue increased compared to the prior quarter, while gross profit also rose, leading to an improvement in gross margin. Cost of revenue grew at a slower pace than revenue, supporting the margin expansion.
- The gross margin improved from the immediately preceding quarter, driven by a higher proportion of revenue flowing through to gross profit relative to cost of revenue. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue increased more than revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Versus the same quarter one year earlier, revenue was slightly higher, but gross profit and gross margin were lower, with cost of revenue higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.2%
Gross profit
$4.9B
Revenue
$11.7B
Cost of revenue
$6.8B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-3.2 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 |
|---|---|---|---|---|
| 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% |
| Aug 31, 2025 | $11.7B | $4.9B | $6.8B | 42.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2025
+1.9 pts
Year-over-year change
Aug 31, 2024
-3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved from the immediately preceding quarter, driven by a higher proportion of revenue flowing through to gross profit relative to cost of revenue. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue increased more than revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Versus the same quarter one year earlier, revenue was slightly higher, but gross profit and gross margin were lower, with cost of revenue higher.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth versus the prior year period compressed gross margin.