NIKE, Inc. stock research
FY2026 Q2
NIKE (NKE) Gross Margin — Quarter Ended Nov 30, 2025
Revenue was unchanged compared to the same quarter last year but increased from the prior quarter. Gross profit was lower year over year and slightly higher sequentially, while cost of revenue was higher versus both periods, resulting in gross margin that weakened compared to both the prior quarter and the same quarter a year ago.
Gross margin takeaway
Quarter ended Nov 30, 2025 · FY2026 Q2
Revenue was unchanged compared to the same quarter last year but increased from the prior quarter. Gross profit was lower year over year and slightly higher sequentially, while cost of revenue was higher versus both periods, resulting in gross margin that weakened compared to both the prior quarter and the same quarter a year ago.
- The strongest observable margin driver was the increase in cost of revenue relative to revenue, as cost grew faster than revenue on a sequential and year-over-year basis, compressing gross margin.
- Compared to the immediately preceding quarter, revenue improved and gross profit increased slightly, but cost of revenue rose more, causing gross margin to weaken. Versus the same quarter one year earlier, revenue was stable, but gross profit declined and cost of revenue was higher, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.6%
Gross profit
$5.0B
Revenue
$12.4B
Cost of revenue
$7.4B
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-3.0 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 |
|---|---|---|---|---|
| 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% |
| Nov 30, 2025 | $12.4B | $5.0B | $7.4B | 40.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2025
-1.6 pts
Year-over-year change
Nov 30, 2024
-3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the increase in cost of revenue relative to revenue, as cost grew faster than revenue on a sequential and year-over-year basis, compressing gross margin.
Compared to the immediately preceding quarter, revenue improved and gross profit increased slightly, but cost of revenue rose more, causing gross margin to weaken. Versus the same quarter one year earlier, revenue was stable, but gross profit declined and cost of revenue was higher, leading to a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its sequential and year-over-year increase outpaced revenue growth and directly impacted margin.