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Item 1. Financial Statements

2026-04-01 compared with 2025-12-30 · 109 added, 91 removed, 614 unchanged (25% of the section changed)

1 unchanged sentence

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(In millions, except per share data)

22 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

9 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

NOVEMBER 30, MAY 31,

FEBRUARY 28, MAY 31,

(In millions)

38 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED NOVEMBER 30,

NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

40 unchanged sentences

SHARES AMOUNT SHARES AMOUNT

Balance at August 31, 2025 289 $ — 1,188 $ 3 $ 14,473 $ ( 308 ) $ ( 700 ) $ 13,468

Balance at November 30, 2025 289 $ — 1,191 $ 3 $ 14,705 $ ( 104 ) $ ( 519 ) $ 14,085

Stock options exercised — — 16 16

Repurchase of Class B Common Stock — —

Conversion to Class B Common Stock ( 8 ) — 8 — —

Dividends on common stock ($ 0.41 per share)

4 unchanged sentences

Other comprehensive income (loss) ( 103 ) ( 103 )

Balance at November 30, 2025 289 $ — 1,191 $ 3 $ 14,705 $ ( 104 ) $ ( 519 ) $ 14,085

Balance at February 28, 2026 281 $ — 1,199 $ 3 $ 14,904 $ ( 207 ) $ ( 610 ) $ 14,090

COMMON STOCK CAPITAL IN EXCESS OF STATED VALUE ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) RETAINED EARNINGS (DEFICIT)

2 unchanged sentences

SHARES AMOUNT SHARES AMOUNT

Balance at August 31, 2024 298 $ — 1,193 $ 3 $ 13,557 $ ( 27 ) $ 411 $ 13,944

Balance at November 30, 2024 298 $ — 1,184 $ 3 $ 13,778 $ 202 $ 54 $ 14,037

Stock options exercised 1 — 55 55

6 unchanged sentences

Other comprehensive income (loss) 61 61

Balance at November 30, 2024 298 $ — 1,184 $ 3 $ 13,778 $ 202 $ 54 $ 14,037

Balance at February 28, 2025 298 $ — 1,179 $ 3 $ 13,916 $ 263 $ ( 175 ) $ 14,007

COMMON STOCK CAPITAL IN EXCESS OF STATED VALUE ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) RETAINED EARNINGS (DEFICIT)

12 unchanged sentences

Other comprehensive income (loss) 51 51

Balance at November 30, 2025 289 $ — 1,191 $ 3 $ 14,705 $ ( 104 ) $ ( 519 ) $ 14,085

Balance at February 28, 2026 281 $ — 1,199 $ 3 $ 14,904 $ ( 207 ) $ ( 610 ) $ 14,090

COMMON STOCK CAPITAL IN EXCESS OF STATED VALUE ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) RETAINED EARNINGS (DEFICIT)

11 unchanged sentences

Other comprehensive income (loss) 210 210

Balance at November 30, 2024 298 $ — 1,184 $ 3 $ 13,778 $ 202 $ 54 $ 14,037

Balance at February 28, 2025 298 $ — 1,179 $ 3 $ 13,916 $ 263 $ ( 175 ) $ 14,007

The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.

3 unchanged sentences

NOTE 3 Fair Value Measurements

NOTE 4 Short-Term Borrowings and Credit Lines

NOTE 5 Income Taxes

6 unchanged sentences

NOTE 12 Commitments and Contingencies

NOTE 13 Severance and Other Employee Costs

NOTE 14 Supplier Finance Programs

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The interim financial information and notes thereto should be read in conjunction with the Company's latest Annual Report on Form 10-K for the fiscal year ended May 31, 2025 (the "Annual Report").

The results of operations for the three and six months ended November 30, 2025, are not necessarily indicative of results for the entire fiscal year.

The results of operations for the three and nine months ended February 28, 2026, are not necessarily indicative of results for the entire fiscal year.

RECENT ACCOUNTING PRONOUNCEMENTS

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction.

The amendments are effective for the Company's annual periods beginning June 1, 2025 and may be applied either prospectively or retrospectively.

The Company is currently evaluating the ASU to determine its impact on the Company's disclosures.

The amendments are effective for the Company's annual periods beginning June 1, 2025.

The Company will adopt the ASU on a prospective basis in the Annual Report on Form 10-K for the fiscal year ending May 31, 2026.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

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Accrued liabilities included the following:

NOVEMBER 30, MAY 31,

FEBRUARY 28, MAY 31,

(Dollars in millions)

6 unchanged sentences

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives, equity securities and available-for-sale debt securities.

The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of November 30, 2025 and May 31, 2025, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:

NOVEMBER 30, 2025

The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of February 28, 2026 and May 31, 2025, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:

FEBRUARY 28, 2026

(Dollars in millions)

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TOTAL $ 9,151 $ 7,464 $ 1,687

As of November 30, 2025, the Company held $ 445 million of available-for-sale debt securities with maturity dates within one year and $ 926 million with maturity dates greater than one year and less than five years in Short-term investments on the Unaudited Condensed Consolidated Balance Sheets.

As of February 28, 2026, the Company held $ 485 million of available-for-sale debt securities with maturity dates within one year and $ 912 million with maturity dates greater than one year and less than five years in Short-term investments on the Unaudited Condensed Consolidated Balance Sheets.

The fair value of the Company's available-for-sale debt securities approximates their amortized cost.

Included in Interest (income) expense, net was interest income related to the Company's investment portfolio of $ 62 million and $ 97 million for the three months ended November 30, 2025 and 2024, respectively, and $ 145 million and $ 217 million for the six months ended November 30, 2025 and 2024, respectively.

Included in Interest (income) expense, net was interest income related to the Company's investment portfolio of $ 65 million and $ 97 million for the three months ended February 28, 2026 and 2025, respectively, and $ 210 million and $ 314 million for the nine months ended February 28, 2026 and 2025, respectively.

The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:

NOVEMBER 30, 2025

FEBRUARY 28, 2026

DERIVATIVE ASSETS DERIVATIVE LIABILITIES

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TOTAL $ 250 $ 140 $ 110 $ 474 $ 376 $ 98

(1) If the foreign exchange and interest rate swap derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $ 243 million as of November 30, 2025.

As of that date, the Company received $ 18 million from various counterparties on the derivative asset balance and posted $ 189 million of cash collateral to counterparties on the derivative liability balance.

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The fair value of long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2).

The fair value of the Company's Long-term debt, excluding interest rate swap fair value adjustments, was approximately $ 6,913 million at November 30, 2025 and $ 6,673 million at May 31, 2025.

The fair value of the Company's Long-term debt, excluding interest rate swap fair value adjustments, was approximately $ 6,961 million at February 28, 2026 and $ 6,673 million at May 31, 2025.

NOTE 4 — SHORT-TERM BORROWINGS AND CREDIT LINES

As of February 28, 2026 and May 31, 2025, the Company had no borrowings outstanding under its $ 3 billion commercial paper program.

On March 6, 2026, subsequent to the end of the third quarter of fiscal 2026, the Company entered into a 364-day committed credit facility agreement with a syndicate of banks, which provides for up to $ 1 billion of borrowings, with an option to increase borrowings up to $ 1.5 billion in total with lender approval.

The facility matures on March 5, 2027, with an option to extend the maturity date an additional 364 days.

This facility replaces the prior $ 1 billion 364-day credit facility agreement entered into on March 7, 2025, which matured on March 6, 2026.

Based on the Company's current long-term senior unsecured debt ratings of A+ and A2 from Standard and Poor's Corporation and Moody's Investor Services, respectively, the interest rate charged on any outstanding borrowings would be the prevailing Term Secured Overnight Financing Rate for the applicable interest period plus 0.625 %.

The facility fee is 0.03 % of the total undrawn commitment.

As of April 1, 2026, no amounts were outstanding under this committed credit facility.

NOTE 5 — INCOME TAXES

The effective tax rate was 20.9 % and 18.7 % for the six months ended November 30, 2025 and 2024, respectively.

The increase in the Company's effective tax rate was primarily due to changes in earnings mix and decreased benefits from stock-based compensation.

The effective tax rate was 20.7 % and 15.7 % for the nine months ended February 28, 2026 and 2025, respectively.

The increase in the Company’s effective tax rate was primarily due to a one-time, non-cash deferred tax benefit recognized in the third quarter of fiscal year 2025 provided by finalized U.S.

tax regulations.

On December 10, 2024, the U.S.

Department of Treasury published final regulations related to Internal Revenue Code Section 987 foreign currency gains and losses derived from translation of the operations, assets and liabilities of non-U.S.

qualified business units.

These regulations required a pre-transition foreign currency gain or loss to be included in the determination of future taxable income or loss.

During the third quarter of fiscal year 2025, the Company recognized a non-cash deferred income tax benefit of $ 133 million related to pre-transition foreign currency losses expected to reduce taxable income in future periods.

On July 4, 2025, the U.S.

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Certain provisions were effective for NIKE beginning June 1, 2025.

Based on the Company's current analysis of the provisions, the Company does not expect these tax law changes to have a material impact on the Company's financial statements;

however, the Company will continue to evaluate their impact as further information becomes available.

As of November 30, 2025, total gross unrecognized tax benefits, excluding related interest and penalties, were $ 1,029 million, $ 757 million of which would affect the Company's effective tax rate if recognized in future periods.

These tax law changes did not have a material impact on the Company's Unaudited Condensed Consolidated Financial Statements for the nine months ended February 28, 2026 and are not expected to have a material impact for the remainder of fiscal year 2026.

As of February 28, 2026, total gross unrecognized tax benefits, excluding related interest and penalties, were $ 969 million, $ 753 million of which would affect the Company's effective tax rate if recognized in future periods.

The majority of total gross unrecognized tax benefits are long-term in nature and included within Deferred income taxes and other liabilities on the Unaudited Condensed Consolidated Balance Sheets.

As of May 31, 2025, total gross unrecognized tax benefits, excluding

related interest and penalties, were $ 1,026 million.

As of November 30, 2025 and May 31, 2025, accrued interest and penalties related to uncertain tax positions were $ 417 million and $ 376 million, respectively, (excluding federal benefit) and included within Deferred income taxes and other liabilities on the Unaudited Condensed Consolidated Balance Sheets.

As of May 31, 2025, total gross unrecognized tax benefits, excluding related interest and penalties, were $ 1,026 million.

As of February 28, 2026 and May 31, 2025, accrued interest and penalties related to uncertain tax positions were $ 433 million and $ 376 million, respectively, (excluding federal benefit) and included within Deferred income taxes and other liabilities on the Unaudited Condensed Consolidated Balance Sheets.

The Company is subject to taxation in the U.S., as well as various state and foreign jurisdictions.

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The following table summarizes the Company's total stock-based compensation expense recognized within Cost of sales or Operating overhead expense, as applicable:

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

8 unchanged sentences

STOCK OPTIONS

As of November 30, 2025, the Company had $ 478 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized within Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.6 years.

As of February 28, 2026, the Company had $ 405 million of unrecognized compensation costs related to stock options, net of estimated forfeitures, to be recognized within Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.5 years.

RESTRICTED STOCK AND RESTRICTED STOCK UNITS

As of November 30, 2025, the Company had $ 805 million of unrecognized compensation costs from restricted stock and restricted stock units, net of estimated forfeitures, to be recognized within Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.8 years.

As of February 28, 2026, the Company had $ 753 million of unrecognized compensation costs related to restricted stock and restricted stock units, net of estimated forfeitures, to be recognized within Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.6 years.

NOTE 7 — EARNINGS PER SHARE

The following is a reconciliation from basic earnings per common share to diluted earnings per common share.

The computations of diluted earnings per common share exclude restricted stock, restricted stock units and options, including shares under ESPPs, to purchase an estimated additional 84.1 million and 81.4 million shares of common stock outstanding for the three months ended November 30, 2025 and 2024, respectively, and 84.3 million and 77.9 million shares of common stock outstanding for the six months ended November 30, 2025 and 2024, respectively, because the awards were assumed to be anti-dilutive.

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

The computations of diluted earnings per common share exclude restricted stock, restricted stock units and options, including shares under ESPPs, to purchase an estimated additional 83.3 million and 77.1 million shares of common stock outstanding for the three months ended February 28, 2026 and 2025, respectively, and 83.3 million and 75.3 million shares of common stock outstanding for the nine months ended February 28, 2026 and 2025, respectively, because the awards were assumed to be anti-dilutive.

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(In millions, except per share data)

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The Company is exposed to global market risks, including the effect of changes in foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business.

As of and for the three and six months ended November 30, 2025, there have been no material changes to the Company's hedging program or strategy from what was disclosed within the Annual Report.

The majority of derivatives outstanding as of November 30, 2025, are designated as foreign currency cash flow hedges, primarily for Euro/U.S.

As of and for the three and nine months ended February 28, 2026, there have been no material changes to the Company's hedging program or strategy from what was disclosed within the Annual Report.

The majority of derivatives outstanding as of February 28, 2026, are designated as foreign currency cash flow hedges, primarily for Euro/U.S.

Dollar, Chinese Yuan/U.S.

4 unchanged sentences

DERIVATIVE ASSETS

BALANCE SHEET LOCATION NOVEMBER 30, MAY 31,

BALANCE SHEET LOCATION FEBRUARY 28, MAY 31,

(Dollars in millions)

10 unchanged sentences

DERIVATIVE LIABILITIES

BALANCE SHEET LOCATION NOVEMBER 30, MAY 31,

BALANCE SHEET LOCATION FEBRUARY 28, MAY 31,

(Dollars in millions)

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Foreign exchange forwards and options Accrued liabilities 22 10

Foreign exchange forwards and options Deferred income taxes and other liabilities 1 —

Total derivatives not designated as hedging instruments 23 10

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INCOME (LOSS) INTO INCOME (1)

THREE MONTHS ENDED NOVEMBER 30, LOCATION OF GAIN (LOSS)

THREE MONTHS ENDED FEBRUARY 28, LOCATION OF GAIN (LOSS)

RECLASSIFIED FROM ACCUMULATED

OTHER COMPREHENSIVE INCOME

(LOSS) INTO INCOME THREE MONTHS ENDED NOVEMBER 30,

(LOSS) INTO INCOME THREE MONTHS ENDED FEBRUARY 28,

2026 2025 2026 2025

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TOTAL DESIGNATED CASH FLOW HEDGES $ ( 256 ) $ 216 $ ( 27 ) $ 97

(1) For the three months ended November 30, 2025 and 2024, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.

(1) For the three months ended February 28, 2026 and 2025, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.

(2) Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest (income) expense, net over the term of the issued debt.

(Dollars in millions) AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER

(Dollars in millions)

AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER

COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES (1)

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INCOME (LOSS) INTO INCOME (1)

SIX MONTHS ENDED NOVEMBER 30, LOCATION OF GAIN (LOSS)

NINE MONTHS ENDED FEBRUARY 28, LOCATION OF GAIN (LOSS)

RECLASSIFIED FROM ACCUMULATED

OTHER COMPREHENSIVE INCOME

(LOSS) INTO INCOME SIX MONTHS ENDED NOVEMBER 30,

(LOSS) INTO INCOME NINE MONTHS ENDED FEBRUARY 28,

2026 2025 2026 2025

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TOTAL DESIGNATED CASH FLOW HEDGES $ ( 163 ) $ 569 $ ( 17 ) $ 213

(1) For the six months ended November 30, 2025 and 2024, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.

(1) For the nine months ended February 28, 2026 and 2025, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.

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ON DERIVATIVES

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

3 unchanged sentences

CASH FLOW HEDGES

The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was approximately $ 16.8 billion and $ 18.4 billion as of November 30, 2025 and May 31, 2025, respectively.

Approximately $ 68 million of deferred net losses (net of tax) on both outstanding and matured derivatives in Accumulated other comprehensive income (loss) as of November 30, 2025, are expected to be reclassified to Net income during the next 12 months concurrent with the underlying hedged transactions also being recorded in Net income.

The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was approximately $ 17.2 billion and $ 18.4 billion as of February 28, 2026 and May 31, 2025, respectively.

Approximately $ 222 million of deferred net losses (net of tax) on both outstanding and matured derivatives in Accumulated other comprehensive income (loss) as of February 28, 2026, are expected to be reclassified to Net income during the next 12 months concurrent with the underlying hedged transactions also being recorded in Net income.

Actual amounts ultimately reclassified to Net income are dependent on the exchange rates in effect when derivative contracts currently outstanding mature.

As of November 30, 2025, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 33 months.

As of February 28, 2026, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 33 months.

FAIR VALUE HEDGES

The total notional amount of outstanding interest rate swap contracts designated as fair value hedges was $ 2.4 billion as of November 30, 2025 and May 31, 2025.

The total notional amount of outstanding interest rate swap contracts designated as fair value hedges was $ 2.4 billion as of February 28, 2026 and May 31, 2025, respectively.

UNDESIGNATED DERIVATIVE INSTRUMENTS

The total notional amount of outstanding undesignated derivative instruments was $ 4.6 billion and $ 4.0 billion as of November 30, 2025 and May 31, 2025, respectively.

As of November 30, 2025, the Company was in compliance with all credit risk-related contingent features and considers the impact of the risk of counterparty default to be immaterial.

The total notional amount of outstanding undesignated derivative instruments was $ 5.3 billion and $ 4.0 billion as of February 28, 2026 and May 31, 2025, respectively.

As of February 28, 2026, the Company was in compliance with all credit risk-related contingent features and considers the impact of the risk of counterparty default to be immaterial.

For additional information related to the Company's derivative financial instruments and collateral, refer to Note 3 — Fair Value Measurements.

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The changes in Accumulated other comprehensive income (loss), net of tax, were as follows:

(Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1)

(Dollars in millions)

FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1)

CASH FLOW HEDGES NET INVESTMENT HEDGES (1)

Balance at August 31, 2025 $ 20 $ ( 393 ) $ 115 $ ( 50 ) $ ( 308 )

Balance at November 30, 2025 $ ( 35 ) $ ( 135 ) $ 115 $ ( 49 ) $ ( 104 )

Other comprehensive income (loss):

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Reclassifications to net income of previously deferred (gains) losses (2)(3)

— 20 — ( 1 ) 19

Total other comprehensive income (loss) 113 ( 216 ) — — ( 103 )

Balance at November 30, 2025 $ ( 35 ) $ ( 135 ) $ 115 $ ( 49 ) $ ( 104 )

Balance at February 28, 2026 $ 78 $ ( 351 ) $ 115 $ ( 49 ) $ ( 207 )

(1) The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity.

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CASH FLOW HEDGES NET INVESTMENT HEDGES (1)

Balance at August 31, 2024 $ ( 118 ) $ 20 $ 115 $ ( 44 ) $ ( 27 )

Balance at November 30, 2024 $ ( 342 ) $ 470 $ 115 $ ( 41 ) $ 202

Other comprehensive income (loss):

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Total other comprehensive income (loss) ( 57 ) 119 — ( 1 ) 61

Balance at November 30, 2024 $ ( 342 ) $ 470 $ 115 $ ( 41 ) $ 202

Balance at February 28, 2025 $ ( 399 ) $ 589 $ 115 $ ( 42 ) $ 263

1 unchanged sentence

(3) Reclassifications to net income of previously deferred (gains) losses are recorded within Other (income) expense, net for foreign currency translation adjustment, net investment hedges, and other.

(Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1)

(Dollars in millions)

FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1)

CASH FLOW HEDGES NET INVESTMENT HEDGES (1)

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Total other comprehensive income (loss) 192 ( 144 ) — 3 51

Balance at November 30, 2025 $ ( 35 ) $ ( 135 ) $ 115 $ ( 49 ) $ ( 104 )

Balance at February 28, 2026 $ 78 $ ( 351 ) $ 115 $ ( 49 ) $ ( 207 )

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Total other comprehensive income (loss) ( 143 ) 342 — 11 210

Balance at November 30, 2024 $ ( 342 ) $ 470 $ 115 $ ( 41 ) $ 202

Balance at February 28, 2025 $ ( 399 ) $ 589 $ 115 $ ( 42 ) $ 263

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The following tables present the Company's Revenues by reportable operating segment, disaggregated by major product line and distribution channel:

THREE MONTHS ENDED NOVEMBER 30, 2025

THREE MONTHS ENDED FEBRUARY 28, 2026

(Dollars in millions)

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TOTAL REVENUES $ 5,026 $ 2,874 $ 1,615 $ 1,490 $ 7 $ 11,012 $ 264 $ 3 $ 11,279

THREE MONTHS ENDED NOVEMBER 30, 2024

THREE MONTHS ENDED FEBRUARY 28, 2025

(Dollars in millions)

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TOTAL REVENUES $ 4,864 $ 2,811 $ 1,733 $ 1,470 $ 12 $ 10,890 $ 405 $ ( 26 ) $ 11,269

SIX MONTHS ENDED NOVEMBER 30, 2025

NINE MONTHS ENDED FEBRUARY 28, 2026

(Dollars in millions)

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TOTAL REVENUES $ 15,679 $ 9,597 $ 4,550 $ 4,647 $ 25 $ 34,498 $ 930 $ ( 2 ) $ 35,426

SIX MONTHS ENDED NOVEMBER 30, 2024

NINE MONTHS ENDED FEBRUARY 28, 2025

(Dollars in millions)

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Corporate revenues primarily consisted of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program.

As of November 30, 2025 and May 31, 2025, the Company did not have any contract assets and had an immaterial amount of contract liabilities recorded in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets.

As of February 28, 2026 and May 31, 2025, the Company did not have any contract assets and had an immaterial amount of contract liabilities recorded in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets.

NOTE 11 — SEGMENT INFORMATION

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North America;

Europe, Middle East & Africa ("EMEA");

Europe, Middle East & Africa;

Greater China;

and Asia Pacific & Latin America ("APLA"), and include results for the NIKE and Jordan brands.

and Asia Pacific & Latin America, and include results for the NIKE and Jordan brands.

Each NIKE Brand segment represents a geographic region operating predominantly in one industry:

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Global Brand Divisions is included within NIKE Brand for presentation purposes to align with the way management views the Company.

Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology.

Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

Converse operates in one industry:

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Differences between these standard rates and actual market rates are included in Corporate, together with foreign currency hedge gains and losses and other conversion gains and losses.

THREE MONTHS ENDED NOVEMBER 30, 2025

THREE MONTHS ENDED FEBRUARY 28, 2026

(Dollars in millions)

2 unchanged sentences

Cost of sales 3,036 1,705 839 870 160 6,610 167 ( 28 ) 6,749

3,335 1,925 836 964 152 7,212 176 ( 6 ) 7,382

2,298 1,467 587 703 ( 143 ) 4,912 124 9 5,045

Gross profit (loss) 1,990 1,169 776 620 ( 153 ) 4,402 97 31 4,530

Demand creation expense

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(2) The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable.

THREE MONTHS ENDED NOVEMBER 30, 2024

THREE MONTHS ENDED FEBRUARY 28, 2025

(Dollars in millions)

2 unchanged sentences

Cost of sales 2,766 1,696 953 829 148 6,392 217 ( 15 ) 6,594

2,896 1,788 957 977 147 6,765 222 ( 22 ) 6,965

2,283 1,515 754 767 ( 134 ) 5,185 207 ( 3 ) 5,389

Gross profit (loss) 2,098 1,115 780 641 ( 136 ) 4,498 188 ( 11 ) 4,675

Demand creation expense

17 unchanged sentences

(2) The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable.

SIX MONTHS ENDED NOVEMBER 30, 2025

NINE MONTHS ENDED FEBRUARY 28, 2026

(Dollars in millions)

2 unchanged sentences

Cost of sales 9,268 5,530 2,473 2,672 480 20,423 536 ( 51 ) 20,908

6,232 3,825 1,634 1,802 320 13,813 369 ( 23 ) 14,159

4,421 2,898 1,301 1,355 ( 302 ) 9,673 297 18 9,988

Gross profit (loss) 6,411 4,067 2,077 1,975 ( 455 ) 14,075 394 49 14,518

Demand creation expense

17 unchanged sentences

(2) The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable.

SIX MONTHS ENDED NOVEMBER 30, 2024

NINE MONTHS ENDED FEBRUARY 28, 2025

(Dollars in millions)

2 unchanged sentences

Cost of sales 8,289 5,179 2,765 2,588 448 19,269 672 ( 50 ) 19,891

5,523 3,483 1,812 1,759 300 12,877 455 ( 35 ) 13,297

4,482 2,963 1,565 1,447 ( 273 ) 10,184 475 ( 13 ) 10,646

Gross profit (loss) 6,580 4,078 2,345 2,088 ( 409 ) 14,682 663 ( 24 ) 15,321

Demand creation expense

17 unchanged sentences

(2) The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable.

NOVEMBER 30, MAY 31,

FEBRUARY 28, MAY 31,

(Dollars in millions)

10 unchanged sentences

$ 7,487 $ 7,489

(1) Inventories as of November 30, 2025 and May 31, 2025 were substantially all finished goods.

(1) Inventories as of February 28, 2026 and May 31, 2025 were substantially all finished goods.

NOTE 12 — COMMITMENTS AND CONTINGENCIES

The Company issues bank guarantees and letters of credit primarily for real estate agreements, self-insurance programs, other general business obligations and legal matters.

As of November 30, 2025 and May 31, 2025, the Company had outstanding bank guarantees and letters of credit of approximately $ 0.9 billion.

Subsequent to November 30, 2025, the Company issued approximately $ 0.3 billion in additional guarantees resulting in total guarantees and letters of credit of approximately $ 1.2 billion as of the date of this report.

As of February 28, 2026 and May 31, 2025, the Company had outstanding bank guarantees and letters of credit of approximately $ 1.3 billion and $ 0.9 billion, respectively, issued primarily for real estate agreements, self-insurance programs, other general business obligations and legal matters.

In the ordinary course of business, the Company is subject to various legal proceedings, claims and government investigations relating to its business, products and actions of its employees and representatives, including contractual and employment relationships, product liability, antitrust, customs, tax, intellectual property and other matters.

9 unchanged sentences

If this matter is ultimately resolved against the Company, the amounts owed, including fines, penalties and other consequences relating to the matter, could have a material adverse effect on the Company's results of operations, financial position and cash flows.

NOTE 13 — SEVERANCE AND OTHER EMPLOYEE COSTS

For the three and nine months ended February 28, 2026, the Company recognized $ 230 million and $ 304 million, respectively, of estimated pre-tax employee severance costs primarily related to organizational changes.

Employee severance costs are recognized when a future related expense is considered probable and reasonably estimable.

The expected pre-tax charges are estimates and are subject to a number of assumptions and actual results may vary from the estimates provided.

For the three and nine months ended February 28, 2026, $ 193 million and $ 254 million, respectively, were classified within Operating overhead expense and $ 37 million and $ 50 million, respectively, were classified within Cost of sales on the Unaudited Condensed Consolidated Statements of Income .

The majority of these charges were classified within Global Brand Divisions and Converse.

As of February 28, 2026, the Company made cash payments related to employee severance costs of $ 82 million.

As of February 28, 2026, the remaining severance and other employee costs of $ 222 million are reflected within Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets, classified within Compensation and benefits, excluding taxes in Note 2 — Accrued Liabilities.

NOTE 14 — SUPPLIER FINANCE PROGRAMS

Certain financial institutions offer voluntary supplier finance programs facilitated through a third-party platform that provide participating suppliers the option to finance valid payment obligations from the Company.

The Company is not a party to agreements negotiated between participating suppliers and third-party financial institutions.

The Company's obligations to its suppliers, including amounts due and payment terms, are not affected by a supplier's decision to participate in these programs and the Company does not provide guarantees to third parties in connection with these programs.

As of November 30, 2025 and May 31, 2025, the Company had $ 1,164 million and $ 1,101 million, respectively, of outstanding supplier obligations confirmed as valid under these programs.

As of February 28, 2026 and May 31, 2025, the Company had approximately $ 0.7 billion and $ 1.1 billion, respectively, of outstanding supplier obligations confirmed as valid under the voluntary supplier finance programs.

These amounts are included within Accounts payable on the Unaudited Condensed Consolidated Balance Sheets.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements