NIKE, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS NIKE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, (In millions, except per share data) 2026 2025 2026 2025 Revenues $ 11,279 $ 11,269 $ 35,426 $ 35,212 Cost of sales 6,749 6,594 20,908 19,891 Gross profit 4,530 4,675 14,518 15,321 Demand creation expense 1,090 1,088 3,551 3,436 Operating overhead expense 2,887 2,799 8,481 8,504 Total selling and administrative expense 3,977 3,887 12,032 11,940 Interest (income) expense, net ( 15 ) ( 18 ) ( 42 ) ( 85 ) Other (income) expense, net ( 82 ) ( 38 ) ( 43 ) ( 101 ) Income before income taxes 650 844 2,571 3,567 Income tax expense 130 50 532 559 NET INCOME $ 520 $ 794 $ 2,039 $ 3,008 Earnings per common share: Basic $ 0.35 $ 0.54 $ 1.38 $ 2.02 Diluted $ 0.35 $ 0.54 $ 1.38 $ 2.02 Weighted average common shares outstanding: Basic 1,480.5 1,478.1 1,478.9 1,487.6 Diluted 1,481.6 1,480.6 1,480.4 1,491.0 The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement. 1 Table of Contents NIKE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, (Dollars in millions) 2026 2025 2026 2025 Net income $ 520 $ 794 $ 2,039 $ 3,008 Other comprehensive income (loss), net of tax: Change in net foreign currency translation adjustment 113 ( 57 ) 192 ( 143 ) Change in net gains (losses) on cash flow hedges ( 216 ) 119 ( 144 ) 342 Change in net gains (losses) on other — ( 1 ) 3 11 Total other comprehensive income (loss), net of tax ( 103 ) 61 51 210 TOTAL COMPREHENSIVE INCOME $ 417 $ 855 $ 2,090 $ 3,218 The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement. 2 Table of Contents NIKE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS FEBRUARY 28, MAY 31, (In millions) 2026 2025 ASSETS Current assets: Cash and equivalents $ 6,660 $ 7,464 Short-term investments 1,397 1,687 Accounts receivable, net 5,369 4,717 Inventories 7,487 7,489 Prepaid expenses and other current assets 2,271 2,005 Total current assets 23,184 23,362 Property, plant and equipment, net 4,766 4,828 Operating lease right-of-use assets, net 2,886 2,712 Identifiable intangible assets, net 259 259 Goodwill 240 240 Deferred income taxes and other assets 5,729 5,178 TOTAL ASSETS $ 37,064 $ 36,579 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 999 $ — Notes payable — 5 Accounts payable 2,888 3,479 Current portion of operating lease liabilities 493 502 Accrued liabilities 6,183 5,911 Income taxes payable 275 669 Total current liabilities 10,838 10,566 Long-term debt 7,030 7,961 Operating lease liabilities 2,656 2,550 Deferred income taxes and other liabilities 2,450 2,289 Commitments and contingencies (Note 12) Redeemable preferred stock — — Shareholders' equity: Common stock at stated value: Class A convertible — 281 and 290 shares outstanding — — Class B — 1,199 and 1,186 shares outstanding 3 3 Capital in excess of stated value 14,904 14,195 Accumulated other comprehensive income (loss) ( 207 ) ( 258 ) Retained earnings (deficit) ( 610 ) ( 727 ) Total shareholders' equity 14,090 13,213 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 37,064 $ 36,579 The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement. 3 Table of Contents NIKE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED FEBRUARY 28, (Dollars in millions) 2026 2025 Cash provided (used) by operations: Net income $ 2,039 $ 3,008 Adjustments to reconcile net income to net cash provided (used) by operations: Depreciation and amortization 554 576 Deferred income taxes ( 132 ) ( 304 ) Stock-based compensation 555 544 Impairment and other 40 35 Net foreign currency adjustments 1 24 Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable ( 623 ) ( 164 ) (Increase) decrease in inventories 24 ( 99 ) (Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets 260 ( 235 ) Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities ( 1,487 ) ( 150 ) Cash provided (used) by operations 1,231 3,235 Cash provided (used) by investing activities: Purchases of short-term investments ( 889 ) ( 2,664 ) Maturities of short-term investments 478 258 Sales of short-term investments 744 2,439 Additions to property, plant and equipment ( 546 ) ( 330 ) Other investing activities ( 63 ) 8 Cash provided (used) by investing activities ( 276 ) ( 289 ) Cash provided (used) by financing activities: Increase (decrease) in notes payable, net ( 4 ) ( 2 ) Proceeds from exercise of stock options and other stock issuances 251 400 Repurchase of common stock ( 146 ) ( 2,786 ) Dividends — common and preferred ( 1,798 ) ( 1,709 ) Other financing activities ( 81 ) ( 79 ) Cash provided (used) by financing activities ( 1,778 ) ( 4,176 ) Effect of exchange rate changes on cash and equivalents 19 ( 29 ) Net increase (decrease) in cash and equivalents ( 804 ) ( 1,259 ) Cash and equivalents, beginning of period 7,464 9,860 CASH AND EQUIVALENTS, END OF PERIOD $ 6,660 $ 8,601 Supplemental disclosure of cash flow information: Non-cash additions to property, plant and equipment $ 67 $ 87 Dividends declared and not paid 611 594 The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement. 4 Table of Contents NIKE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY COMMON STOCK CAPITAL IN EXCESS OF STATED VALUE ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) RETAINED EARNINGS (DEFICIT) TOTAL CLASS A CLASS B (In millions, except per share data) SHARES AMOUNT SHARES AMOUNT Balance at November 30, 2025 289 $ — 1,191 $ 3 $ 14,705 $ ( 104 ) $ ( 519 ) $ 14,085 Stock options exercised — — 16 16 Conversion to Class B Common Stock ( 8 ) — 8 — — Dividends on common stock ($ 0.41 per share) ( 611 ) ( 611 ) Issuance of shares to employees, net of shares withheld for employee taxes — — ( 11 ) ( 11 ) Stock-based compensation 194 194 Net income 520 520 Other comprehensive income (loss) ( 103 ) ( 103 ) 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) TOTAL CLASS A CLASS B (In millions, except per share data) SHARES AMOUNT SHARES AMOUNT Balance at November 30, 2024 298 $ — 1,184 $ 3 $ 13,778 $ 202 $ 54 $ 14,037 Stock options exercised 1 — 55 55 Repurchase of Class B Common Stock ( 6 ) — ( 60 ) ( 439 ) ( 499 ) Dividends on common stock ($ 0.40 per share) ( 594 ) ( 594 ) Issuance of shares to employees, net of shares withheld for employee taxes — — ( 26 ) 10 ( 16 ) Stock-based compensation 169 169 Net income 794 794 Other comprehensive income (loss) 61 61 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) TOTAL CLASS A CLASS B (In millions, except per share data) SHARES AMOUNT SHARES AMOUNT Balance at May 31, 2025 290 $ — 1,186 $ 3 $ 14,195 $ ( 258 ) $ ( 727 ) $ 13,213 Stock options exercised 3 — 155 155 Conversion to Class B Common Stock ( 9 ) — 9 — — Repurchase of Class B Common Stock ( 2 ) — ( 17 ) ( 106 ) ( 123 ) Dividends on common stock ($ 1.22 per share) and preferred stock ($ 0.10 per share) ( 1,816 ) ( 1,816 ) Issuance of shares to employees, net of shares withheld for employee taxes 3 — 16 16 Stock-based compensation 555 555 Net income 2,039 2,039 Other comprehensive income (loss) 51 51 Balance at February 28, 2026 281 $ — 1,199 $ 3 $ 14,904 $ ( 207 ) $ ( 610 ) $ 14,090 5 Table of Contents COMMON STOCK CAPITAL IN EXCESS OF STATED VALUE ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) RETAINED EARNINGS (DEFICIT) TOTAL CLASS A CLASS B (In millions, except per share data) SHARES AMOUNT SHARES AMOUNT Balance at May 31, 2024 298 $ — 1,205 $ 3 $ 13,409 $ 53 $ 965 $ 14,430 Stock options exercised 5 — 274 274 Repurchase of Class B Common Stock ( 34 ) — ( 311 ) ( 2,442 ) ( 2,753 ) Dividends on common stock ($ 1.17 per share) and preferred stock ($ 0.10 per share) ( 1,745 ) ( 1,745 ) Issuance of shares to employees, net of shares withheld for employee taxes 3 — — 39 39 Stock-based compensation 544 544 Net income 3,008 3,008 Other comprehensive income (loss) 210 210 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. 6 Table of Contents NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 Summary of Significant Accounting Policies 8 NOTE 2 Accrued Liabilities 8 NOTE 3 Fair Value Measurements 9 NOTE 4 Short-Term Borrowings and Credit Lines 10 NOTE 5 Income Taxes 11 NOTE 6 Stock-Based Compensation 11 NOTE 7 Earnings Per Share 13 NOTE 8 Risk Management and Derivatives 14 NOTE 9 Accumulated Other Comprehensive Income (Loss) 16 NOTE 10 Revenues 18 NOTE 11 Segment Information 20 NOTE 12 Commitments and Contingencies 23 NOTE 13 Severance and Other Employee Costs 23 NOTE 14 Supplier Finance Programs 24 7 Table of Contents NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The Unaudited Condensed Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the "Company" or "NIKE") and reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period. The year-end Condensed Consolidated Balance Sheet data as of May 31, 2025, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America ("U.S. GAAP"). 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 nine months ended February 28, 2026, are not necessarily indicative of results for the entire fiscal year. RECENT ACCOUNTING PRONOUNCEMENTS 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. 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): Disaggregation of Income Statement Expenses, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. The new disclosure requirements are effective for the Company's annual periods beginning June 1, 2027, and interim periods beginning June 1, 2028, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the ASU to determine its impact on the Company's disclosures. In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which includes amendments to more closely align hedge accounting with the economics of an entity’s risk management activities. The amendments are effective for the Company’s annual periods beginning June 1, 2027 and interim periods within those fiscal years, with early adoption permitted, and should be applied prospectively. The Company is currently evaluating the ASU to determine its impact on the Company’s financial statements and related disclosures. NOTE 2 — ACCRUED LIABILITIES Accrued liabilities included the following: FEBRUARY 28, MAY 31, (Dollars in millions) 2026 2025 Sales-related reserves $ 1,658 $ 1,834 Compensation and benefits, excluding taxes 1,544 1,245 Dividends payable 616 598 Other 2,365 2,234 TOTAL ACCRUED LIABILITIES $ 6,183 $ 5,911 8 Table of Contents NOTE 3 — FAIR VALUE MEASUREMENTS 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 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) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 1,693 $ 1,693 $ — Level 1: U.S. Treasury securities 727 — 727 Level 2: Commercial paper and bonds 680 28 652 Money market funds 4,787 4,787 — Time deposits 150 150 — U.S. Agency securities 20 2 18 Total Level 2 5,637 4,967 670 TOTAL $ 8,057 $ 6,660 $ 1,397 MAY 31, 2025 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 1,221 $ 1,221 $ — Level 1: U.S. Treasury securities 1,046 — 1,046 Level 2: Commercial paper and bonds 675 45 630 Money market funds 5,902 5,902 — Time deposits 297 295 2 U.S. Agency securities 10 1 9 Total Level 2 6,884 6,243 641 TOTAL $ 9,151 $ 7,464 $ 1,687 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 $ 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. 9 Table of Contents 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: FEBRUARY 28, 2026 DERIVATIVE ASSETS DERIVATIVE LIABILITIES (Dollars in millions) ASSETS AT FAIR VALUE OTHER CURRENT ASSETS OTHER LONG-TERM ASSETS LIABILITIES AT FAIR VALUE ACCRUED LIABILITIES OTHER LONG-TERM LIABILITIES Level 2: Foreign exchange forwards and options (1) $ 165 $ 140 $ 25 $ 474 $ 376 $ 98 Interest rate swaps (1) 85 — 85 — — — 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 $ 225 million as of February 28, 2026. 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. MAY 31, 2025 DERIVATIVE ASSETS DERIVATIVE LIABILITIES (Dollars in millions) ASSETS AT FAIR VALUE OTHER CURRENT ASSETS OTHER LONG-TERM ASSETS LIABILITIES AT FAIR VALUE ACCRUED LIABILITIES OTHER LONG-TERM LIABILITIES Level 2: Foreign exchange forwards and options (1) $ 107 $ 85 $ 22 $ 368 $ 226 $ 142 Interest rate swaps (1) 24 — 24 3 — 3 TOTAL $ 131 $ 85 $ 46 $ 371 $ 226 $ 145 (1) If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $ 131 million as of May 31, 2025. As of that date, the Company posted $ 166 million of cash collateral to various counterparties on the derivative liability balance and no amount of collateral was received from counterparties on the derivative asset balance. For additional information related to the Company's derivative financial instruments and credit risk, refer to Note 8 — Risk Management and Derivatives. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value. FINANCIAL ASSETS AND LIABILITIES NOT RECORDED AT FAIR VALUE The Company's Long-term debt is recorded at adjusted cost, net of unamortized premiums, discounts, debt issuance costs and interest rate swap fair value adjustments. 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 $ 6,961 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. 10 Table of Contents NOTE 5 — INCOME TAXES 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. government enacted The One Big Beautiful Bill Act of 2025 which includes, among other provisions, changes to the U.S. corporate income tax system including the allowance of immediate expensing of qualifying research and development expenses and permanent extensions of certain provisions within the Tax Cuts and Jobs Act. Certain provisions were effective for NIKE beginning June 1, 2025. 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 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. The Company is currently under audit by the U.S. Internal Revenue Service ("IRS") for fiscal years 2017 through 2023. The Company has closed all U.S. federal income tax matters through fiscal year 2016, with the exception of certain transfer pricing adjustments. In certain major foreign jurisdictions, tax years after 2015 remain subject to examination. Although the timing of resolution of audits is not certain, the Company evaluates all domestic and foreign audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimates that it is reasonably possible the total gross unrecognized tax benefits could decrease by up to $ 234 million within the next 12 months primarily as a result of the expected resolution with the IRS of certain U.S. federal income tax matters for fiscal years 2017 through 2019 related to transfer pricing adjustments, research and development credits and other items. In January 2019, the European Commission opened a formal investigation to examine whether the Netherlands has breached State Aid rules when granting certain tax rulings to the Company. The Company believes the investigation is without merit. If this matter is adversely resolved, the Netherlands may be required to assess additional amounts with respect to prior periods, and the Company's income taxes related to prior periods in the Netherlands could increase. NOTE 6 — STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION The NIKE, Inc. Stock Incentive Plan (the "Stock Incentive Plan") provides for the issuance of up to 843 million previously unissued shares of Class B Common Stock in connection with equity awards granted under the Stock Incentive Plan. The Stock Incentive Plan authorizes the grant of non-statutory stock options, incentive stock options, stock appreciation rights and stock awards, including restricted stock and restricted stock units. Restricted stock units include both time-vesting restricted stock units as well as performance-based restricted stock units ("PSUs"). In addition to the Stock Incentive Plan, the Company gives employees the right to purchase shares at a discount from the market price under employee stock purchase plans ("ESPPs"). 11 Table of Contents 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 FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, (Dollars in millions) 2026 2025 2026 2025 Stock options (1) $ 68 $ 69 $ 215 $ 222 ESPPs 19 17 45 53 Restricted stock and restricted stock units 107 83 295 269 TOTAL STOCK-BASED COMPENSATION EXPENSE $ 194 $ 169 $ 555 $ 544 (1) Expense for stock options includes the expense associated with stock appreciation rights. STOCK OPTIONS 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 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. 12 Table of Contents 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 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) 2026 2025 2026 2025 Net income available to common stockholders $ 520 $ 794 $ 2,039 $ 3,008 Determination of shares: Weighted average common shares outstanding 1,480.5 1,478.1 1,478.9 1,487.6 Assumed conversion of dilutive stock options and awards 1.1 2.5 1.5 3.4 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 1,481.6 1,480.6 1,480.4 1,491.0 Earnings per common share: Basic $ 0.35 $ 0.54 $ 1.38 $ 2.02 Diluted $ 0.35 $ 0.54 $ 1.38 $ 2.02 13 Table of Contents NOTE 8 — RISK MANAGEMENT AND DERIVATIVES 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 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. Dollar, British Pound/Euro and Japanese Yen/U.S. Dollar currency pairs. All derivatives are recognized on the Unaudited Condensed Consolidated Balance Sheets at fair value and classified based on the instrument's maturity date. The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets: DERIVATIVE ASSETS BALANCE SHEET LOCATION FEBRUARY 28, MAY 31, (Dollars in millions) 2026 2025 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 104 $ 75 Foreign exchange forwards and options Deferred income taxes and other assets 25 22 Interest rate swaps Deferred income taxes and other assets 85 24 Total derivatives formally designated as hedging instruments 214 121 Derivatives not designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets 36 10 Total derivatives not designated as hedging instruments 36 10 TOTAL DERIVATIVE ASSETS $ 250 $ 131 DERIVATIVE LIABILITIES BALANCE SHEET LOCATION FEBRUARY 28, MAY 31, (Dollars in millions) 2026 2025 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities $ 354 $ 216 Foreign exchange forwards and options Deferred income taxes and other liabilities 97 142 Interest rate swaps Deferred income taxes and other liabilities — 3 Total derivatives formally designated as hedging instruments 451 361 Derivatives not designated as hedging instruments: 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 TOTAL DERIVATIVE LIABILITIES $ 474 $ 371 14 Table of Contents The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income: (Dollars in millions) AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES (1) AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME (1) THREE MONTHS ENDED FEBRUARY 28, LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME THREE MONTHS ENDED FEBRUARY 28, 2026 2025 2026 2025 Derivatives designated as cash flow hedges: Foreign exchange forwards and options $ ( 8 ) $ ( 30 ) Revenues $ 3 $ ( 25 ) Foreign exchange forwards and options ( 190 ) 180 Cost of sales ( 8 ) 67 Foreign exchange forwards and options ( 58 ) 66 Other (income) expense, net ( 20 ) 57 Interest rate swaps (2) — — Interest (income) expense, net ( 2 ) ( 2 ) TOTAL DESIGNATED CASH FLOW HEDGES $ ( 256 ) $ 216 $ ( 27 ) $ 97 (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 COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES (1) AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME (1) NINE MONTHS ENDED FEBRUARY 28, LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME NINE MONTHS ENDED FEBRUARY 28, 2026 2025 2026 2025 Derivatives designated as cash flow hedges: Foreign exchange forwards and options $ 39 $ ( 103 ) Revenues $ ( 1 ) $ ( 70 ) Foreign exchange forwards and options ( 151 ) 478 Cost of sales 42 187 Foreign exchange forwards and options ( 51 ) 194 Other (income) expense, net ( 53 ) 102 Interest rate swaps (2) — — Interest (income) expense, net ( 5 ) ( 6 ) TOTAL DESIGNATED CASH FLOW HEDGES $ ( 163 ) $ 569 $ ( 17 ) $ 213 (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. (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. AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES LOCATION OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, (Dollars in millions) 2026 2025 2026 2025 Derivatives not designated as hedging instruments: Foreign exchange forwards and options $ ( 61 ) $ 3 $ ( 41 ) $ 9 Other (income) expense, net 15 Table of Contents CASH FLOW HEDGES 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 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 February 28, 2026 and May 31, 2025, respectively. UNDESIGNATED DERIVATIVE INSTRUMENTS 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. CREDIT RISK 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. NOTE 9 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in Accumulated other comprehensive income (loss), net of tax, were as follows: (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at November 30, 2025 $ ( 35 ) $ ( 135 ) $ 115 $ ( 49 ) $ ( 104 ) Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) 113 ( 236 ) — 1 ( 122 ) Reclassifications to net income of previously deferred (gains) losses (2)(3) — 20 — ( 1 ) 19 Total other comprehensive income (loss) 113 ( 216 ) — — ( 103 ) 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. (2) Net of immaterial tax impact. (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. 16 Table of Contents (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at November 30, 2024 $ ( 342 ) $ 470 $ 115 $ ( 41 ) $ 202 Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) ( 57 ) 205 — 4 152 Reclassifications to net income of previously deferred (gains) losses (2)(3) — ( 86 ) — ( 5 ) ( 91 ) Total other comprehensive income (loss) ( 57 ) 119 — ( 1 ) 61 Balance at February 28, 2025 $ ( 399 ) $ 589 $ 115 $ ( 42 ) $ 263 (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. (2) Net of immaterial tax impact. (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) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2025 $ ( 114 ) $ ( 207 ) $ 115 $ ( 52 ) $ ( 258 ) Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) 192 ( 144 ) — 4 52 Reclassifications to net income of previously deferred (gains) losses (2)(3) — — — ( 1 ) ( 1 ) Total other comprehensive income (loss) 192 ( 144 ) — 3 51 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. (2) Net of immaterial tax impact. (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) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2024 $ ( 256 ) $ 247 $ 115 $ ( 53 ) $ 53 Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) ( 143 ) 546 — 14 417 Reclassifications to net income of previously deferred (gains) losses (2)(3) — ( 204 ) — ( 3 ) ( 207 ) Total other comprehensive income (loss) ( 143 ) 342 — 11 210 Balance at February 28, 2025 $ ( 399 ) $ 589 $ 115 $ ( 42 ) $ 263 (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. (2) Net of immaterial tax impact. (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. For additional information related to the Company's cash flow hedges, refer to Note 8 — Risk Management and Derivatives. 17 Table of Contents NOTE 10 — REVENUES DISAGGREGATION OF REVENUES The following tables present the Company's Revenues by reportable operating segment, disaggregated by major product line and distribution channel: THREE MONTHS ENDED FEBRUARY 28, 2026 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 3,326 $ 1,789 $ 1,187 $ 1,051 $ — $ 7,353 $ 231 $ — $ 7,584 Apparel 1,480 926 397 381 — 3,184 12 — 3,196 Equipment 220 159 31 58 — 468 4 — 472 Other — — — — 7 7 17 3 27 TOTAL REVENUES $ 5,026 $ 2,874 $ 1,615 $ 1,490 $ 7 $ 11,012 $ 264 $ 3 $ 11,279 Revenues by: Sales to Wholesale Customers $ 2,768 $ 1,919 $ 888 $ 891 $ — $ 6,466 $ 142 $ — $ 6,608 Sales through Direct to Consumer 2,258 955 727 599 — 4,539 105 — 4,644 Other — — — — 7 7 17 3 27 TOTAL REVENUES $ 5,026 $ 2,874 $ 1,615 $ 1,490 $ 7 $ 11,012 $ 264 $ 3 $ 11,279 THREE MONTHS ENDED FEBRUARY 28, 2025 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 3,132 $ 1,742 $ 1,282 $ 1,052 $ — $ 7,208 $ 349 $ — $ 7,557 Apparel 1,510 913 412 358 — 3,193 22 — 3,215 Equipment 222 156 39 60 — 477 7 — 484 Other — — — — 12 12 27 ( 26 ) 13 TOTAL REVENUES $ 4,864 $ 2,811 $ 1,733 $ 1,470 $ 12 $ 10,890 $ 405 $ ( 26 ) $ 11,269 Revenues by: Sales to Wholesale Customers $ 2,499 $ 1,817 $ 995 $ 844 $ — $ 6,155 $ 208 $ — $ 6,363 Sales through Direct to Consumer 2,365 994 738 626 — 4,723 170 — 4,893 Other — — — — 12 12 27 ( 26 ) 13 TOTAL REVENUES $ 4,864 $ 2,811 $ 1,733 $ 1,470 $ 12 $ 10,890 $ 405 $ ( 26 ) $ 11,269 18 Table of Contents NINE MONTHS ENDED FEBRUARY 28, 2026 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 10,087 $ 5,822 $ 3,250 $ 3,263 $ — $ 22,422 $ 805 $ — $ 23,227 Apparel 4,765 3,228 1,201 1,209 — 10,403 39 — 10,442 Equipment 827 547 99 175 — 1,648 17 — 1,665 Other — — — — 25 25 69 ( 2 ) 92 TOTAL REVENUES $ 15,679 $ 9,597 $ 4,550 $ 4,647 $ 25 $ 34,498 $ 930 $ ( 2 ) $ 35,426 Revenues by: Sales to Wholesale Customers $ 9,054 $ 6,368 $ 2,548 $ 2,834 $ — $ 20,804 $ 480 $ — $ 21,284 Sales through Direct to Consumer 6,625 3,229 2,002 1,813 — 13,669 381 — 14,050 Other — — — — 25 25 69 ( 2 ) 92 TOTAL REVENUES $ 15,679 $ 9,597 $ 4,550 $ 4,647 $ 25 $ 34,498 $ 930 $ ( 2 ) $ 35,426 NINE MONTHS ENDED FEBRUARY 28, 2025 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 9,580 $ 5,676 $ 3,731 $ 3,338 $ — $ 22,325 $ 1,149 $ — $ 23,474 Apparel 4,534 3,042 1,244 1,143 — 9,963 65 — 10,028 Equipment 755 539 135 195 — 1,624 25 — 1,649 Other — — — — 39 39 96 ( 74 ) 61 TOTAL REVENUES $ 14,869 $ 9,257 $ 5,110 $ 4,676 $ 39 $ 33,951 $ 1,335 $ ( 74 ) $ 35,212 Revenues by: Sales to Wholesale Customers $ 7,840 $ 6,011 $ 2,870 $ 2,764 $ — $ 19,485 $ 695 $ — $ 20,180 Sales through Direct to Consumer 7,029 3,246 2,240 1,912 — 14,427 544 — 14,971 Other — — — — 39 39 96 ( 74 ) 61 TOTAL REVENUES $ 14,869 $ 9,257 $ 5,110 $ 4,676 $ 39 $ 33,951 $ 1,335 $ ( 74 ) $ 35,212 Global Brand Divisions revenues included NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. Converse Other revenues were primarily attributable to licensing businesses. 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 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. 19 Table of Contents NOTE 11 — SEGMENT INFORMATION The Company's reportable operating segments reflect the structure of the Company's internal organization and the financial information the Chief Operating Decision Maker ("CODM"), the Company's Chief Executive Officer, regularly reviews to assess Company performance and allocate resources. The CODM evaluates the performance of the Company's segments and allocates resources based on earnings before interest and taxes ("EBIT"), which represents Net income before Interest (income) expense, net, and Income tax expense in the Unaudited Condensed Consolidated Statements of Income. The Company's segments are defined as follows: NIKE BRAND The NIKE Brand reportable operating segments are: North America; Europe, Middle East & Africa; Greater China; 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: the design, development, marketing and selling of athletic footwear, apparel and equipment. Global Brand Divisions is included within NIKE Brand for presentation purposes to align with the way management views the Company. 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 Converse operates in one industry: the design, marketing, licensing and selling of casual sneakers, apparel and accessories. CORPORATE Corporate primarily consists of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. As part of the Company's centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brand entity in the Company's geographic segments and to Converse. Inventories and Cost of sales for geographic segments and Converse reflect the use of these standard rates to recognize non-functional currency product purchases in the entity's functional currency. 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. 20 Table of Contents THREE MONTHS ENDED FEBRUARY 28, 2026 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues $ 5,026 $ 2,874 $ 1,615 $ 1,490 $ 7 $ 11,012 $ 264 $ 3 $ 11,279 Cost of sales 3,036 1,705 839 870 160 6,610 167 ( 28 ) 6,749 Gross profit (loss) 1,990 1,169 776 620 ( 153 ) 4,402 97 31 4,530 Demand creation expense 416 296 97 91 170 1,070 17 3 1,090 Operating overhead expense 593 360 235 200 886 2,274 120 493 2,887 Total selling and administrative expense 1,009 656 332 291 1,056 3,344 137 496 3,977 Other segment items (1) — ( 2 ) ( 23 ) ( 3 ) — ( 28 ) — ( 54 ) ( 82 ) EARNINGS (LOSS) BEFORE INTEREST AND TAXES $ 981 $ 515 $ 467 $ 332 $ ( 1,209 ) $ 1,086 $ ( 40 ) $ ( 411 ) Interest (income) expense, net ( 15 ) TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 650 Supplemental information: Depreciation and amortization (2) $ 37 37 11 13 58 156 2 27 $ 185 (1) At NIKE Brand segments and Converse, other segment items consist of unusual or non-operating transactions that occur outside the normal course of business. At Corporate, this also includes foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments. (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 FEBRUARY 28, 2025 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues $ 4,864 $ 2,811 $ 1,733 $ 1,470 $ 12 $ 10,890 $ 405 $ ( 26 ) $ 11,269 Cost of sales 2,766 1,696 953 829 148 6,392 217 ( 15 ) 6,594 Gross profit (loss) 2,098 1,115 780 641 ( 136 ) 4,498 188 ( 11 ) 4,675 Demand creation expense 401 267 123 97 158 1,046 40 2 1,088 Operating overhead expense 596 353 235 200 802 2,186 108 505 2,799 Total selling and administrative expense 997 620 358 297 960 3,232 148 507 3,887 Other segment items (1) ( 2 ) 15 1 ( 2 ) ( 3 ) 9 1 ( 48 ) ( 38 ) EARNINGS (LOSS) BEFORE INTEREST AND TAXES $ 1,103 $ 480 $ 421 $ 346 $ ( 1,093 ) $ 1,257 $ 39 $ ( 470 ) Interest (income) expense, net ( 18 ) TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 844 Supplemental information: Depreciation and amortization (2) $ 49 37 11 12 55 164 3 31 $ 198 (1) At NIKE Brand segments and Converse, other segment items consist of unusual or non-operating transactions that occur outside the normal course of business. At Corporate, this also includes foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments. (2) The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable. 21 Table of Contents NINE MONTHS ENDED FEBRUARY 28, 2026 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues $ 15,679 $ 9,597 $ 4,550 $ 4,647 $ 25 $ 34,498 $ 930 $ ( 2 ) $ 35,426 Cost of sales 9,268 5,530 2,473 2,672 480 20,423 536 ( 51 ) 20,908 Gross profit (loss) 6,411 4,067 2,077 1,975 ( 455 ) 14,075 394 49 14,518 Demand creation expense 1,331 943 341 297 558 3,470 74 7 3,551 Operating overhead expense 1,705 1,141 725 614 2,461 6,646 326 1,509 8,481 Total selling and administrative expense 3,036 2,084 1,066 911 3,019 10,116 400 1,516 12,032 Other segment items (1) ( 1 ) — ( 24 ) ( 7 ) ( 1 ) ( 33 ) ( 1 ) ( 9 ) ( 43 ) EARNINGS (LOSS) BEFORE INTEREST AND TAXES $ 3,376 $ 1,983 $ 1,035 $ 1,071 $ ( 3,473 ) $ 3,992 $ ( 5 ) $ ( 1,458 ) Interest (income) expense, net ( 42 ) TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 2,571 Supplemental information: Depreciation and amortization (2) $ 108 113 33 42 167 463 6 85 $ 554 (1) At NIKE Brand segments and Converse, other segment items consist of unusual or non-operating transactions that occur outside the normal course of business. At Corporate, this also includes foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments. (2) The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable. NINE MONTHS ENDED FEBRUARY 28, 2025 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues $ 14,869 $ 9,257 $ 5,110 $ 4,676 $ 39 $ 33,951 $ 1,335 $ ( 74 ) $ 35,212 Cost of sales 8,289 5,179 2,765 2,588 448 19,269 672 ( 50 ) 19,891 Gross profit (loss) 6,580 4,078 2,345 2,088 ( 409 ) 14,682 663 ( 24 ) 15,321 Demand creation expense 1,235 870 372 285 547 3,309 118 9 3,436 Operating overhead expense 1,656 1,091 727 597 2,499 6,570 332 1,602 8,504 Total selling and administrative expense 2,891 1,961 1,099 882 3,046 9,879 450 1,611 11,940 Other segment items (1) ( 1 ) 14 ( 52 ) ( 2 ) ( 2 ) ( 43 ) — ( 58 ) ( 101 ) EARNINGS (LOSS) BEFORE INTEREST AND TAXES $ 3,690 $ 2,103 $ 1,298 $ 1,208 $ ( 3,453 ) $ 4,846 $ 213 $ ( 1,577 ) Interest (income) expense, net ( 85 ) TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 3,567 Supplemental information: Depreciation and amortization (2) $ 119 108 37 36 171 471 11 94 $ 576 (1) At NIKE Brand segments and Converse, other segment items consist of unusual or non-operating transactions that occur outside the normal course of business. At Corporate, this also includes foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments. (2) The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable. 22 Table of Contents FEBRUARY 28, MAY 31, (Dollars in millions) 2026 2025 INVENTORIES (1) North America $ 3,166 $ 3,198 Europe, Middle East & Africa 2,269 2,042 Greater China 937 951 Asia Pacific & Latin America 1,011 905 Global Brand Divisions 157 148 TOTAL NIKE BRAND 7,540 7,244 Converse 195 272 Corporate ( 248 ) ( 27 ) TOTAL NIKE, INC. INVENTORIES $ 7,487 $ 7,489 (1) Inventories as of February 28, 2026 and May 31, 2025 were substantially all finished goods. NOTE 12 — COMMITMENTS AND CONTINGENCIES 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. The outcome of these legal matters is inherently uncertain, and the Company cannot predict the eventual outcome of currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences relating to those matters. When a loss related to a legal proceeding or claim is probable and reasonably estimable, the Company accrues its best estimate for the ultimate resolution of the matter. If one or more legal matters were to be resolved against the Company in a reporting period for amounts above management's expectations, the Company's financial position, operating results and cash flows for that reporting period could be materially adversely affected. In the opinion of management, based on its current knowledge and after consultation with counsel, the Company does not believe any currently pending legal matters will have a material adverse impact on the Company's results of operations, financial position or cash flows, except as described below. BELGIAN CUSTOMS CLAIM The Company has received claims for certain years from Belgian Customs Authorities for alleged underpaid duties related to products imported beginning in fiscal 2018. The Company disputes these claims and has engaged in the appellate process. The Company has issued bank guarantees in order to appeal the claims. At this time, the Company is unable to estimate the range of loss and cannot predict the final outcome as it could take several years to reach a resolution on this matter. 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. 23 Table of Contents NOTE 14 — SUPPLIER FINANCE 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. 24 Table of Contents