Nike Inc. (NYSE:NKE) is a global leader in the design, development, and marketing of athletic footwear, apparel, and equipment. Known for its iconic "Swoosh" logo, Nike competes with other major brands like Adidas and Under Armour. The company has a strong presence in the North American market but faces challenges in regions like Greater China and Latin America.
On December 18, 2025, Nike reported earnings per share (EPS) of $0.53, surpassing the estimated $0.37. This represents a significant earnings surprise of 43.24%, as highlighted by Zacks. However, it's a decrease from the $0.78 per share reported in the same quarter last year. Despite this decline, Nike has consistently outperformed consensus EPS estimates over the past four quarters.
Nike's revenue for the quarter ending November 2025 was $12.43 billion, exceeding the Zacks Consensus Estimate by 2.35%. This is a slight increase from the $12.35 billion reported in the same period last year. The company has consistently surpassed consensus revenue estimates in the last four quarters, showcasing its strong performance within the Zacks Shoes and Retail Apparel industry.
Despite the positive earnings report, Nike's profit margins have decreased, and investor concerns persist regarding the company's future performance. Nike's management described the current phase of their recovery strategy as being "in the middle innings," indicating ongoing progress in their turnaround plan. The company's second-quarter sales experienced growth, primarily driven by the North American market.
Nike's financial metrics provide insight into its valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 38.43, indicating investor willingness to pay for earnings. Its price-to-sales ratio is about 2.09, and the enterprise value to sales ratio is around 2.17. With a debt-to-equity ratio of 0.82 and a current ratio of 2.19, Nike demonstrates strong liquidity and a balanced approach to financing its assets.
