Nike Q1 Fiscal 2027 Earnings: $0.48 a Share Without the Tariff Refund, and a Stock That Fell

Nike reported fiscal 2027 first-quarter results after the close on Thursday, October 1, 2026, at about 4:15 p.m. ET: diluted earnings per share of $0.48 on revenue of $11.2 billion, down 4% from a year earlier. Nike stock fell 5.268% in the first minute after the headline, even though the profit figure came in ahead of analyst estimates. Fifteen minutes after the headline the stock stood 4.76% below its $35.31 reference level.

Some reports that week attached a different set of numbers to Nike: earnings of $0.72 a share and a large tariff refund. Those figures are from the previous quarter. Nike's own releases separate the two periods, and the gap between them accounts for much of the reaction.

How the tariff refund lifted the prior quarter

On June 30, 2026, Nike reported its fiscal 2026 fourth quarter, covering the three months to May 31. Diluted EPS was $0.72, and the release said that figure included a $0.52 benefit related to the expected recovery of tariffs paid under the International Emergency Economic Powers Act. The U.S. Supreme Court had ruled those tariffs unauthorized on February 20, 2026.

Tariffs Nike had already paid were sitting in its cost of sales. Once recovery became expected, Nike booked the amount as a reduction of cost, which raised gross profit in a single quarter without any additional sales. Gross margin for that quarter was 49.2%, and Nike said about 900 basis points of it came from the tariff item. Removing the benefit leaves earnings of roughly $0.20 a share and a gross margin near 40.2%.

What the first quarter looked like without it

The quarter ended August 31, 2026 is the first since the refund with no such item in it. Gross margin was 42.8%, up 60 basis points from a year earlier, and Nike attributed the gain mainly to lower warehousing and logistics costs. Selling and administrative expense fell 3% to $3.9 billion. Against the prior quarter without the refund, earnings more than doubled. Against the reported $0.72 they dropped by a third, and all of that drop comes from the refund falling away.

Revenue was the weaker line. Greater China revenue fell 22% on a reported basis and 26% on a currency-neutral basis, and Nike said it is repositioning Nike Sportswear, Jordan Brand and its China business.

Why Nike stock fell after the Q1 fiscal 2027 earnings

The same release carried the full-year outlook. Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage and adjusted diluted EPS of $1.15 to $1.35. That range excludes about $0.15 of restructuring expense tied to Pace, a new operating-model program that Nike says will save about $2.5 billion at a cost of roughly $1 billion.

Fiscal 2026 diluted EPS was $2.10. Take out the $0.52 tariff benefit and the year comes to about $1.58. The fiscal 2027 range sits below both figures, so earnings step down twice in the outlook, once as the refund drops out and again on lower sales.

1. February 20, 2026: the Supreme Court rules the IEEPA tariffs unauthorized.
2. June 30, 2026: Nike reports fourth-quarter EPS of $0.72, including the $0.52 expected-recovery benefit.
3. July 24, 2026: new Section 301 duties take effect on goods from China, Vietnam and Indonesia.
4. October 1, 2026: Nike reports first-quarter EPS of $0.48 and guides fiscal 2027 revenue lower.

The quarter beat estimates, and the stock still fell 5.268% in a minute because the full-year outlook was the new information in the release.