NIKE (NKE) Financials

NIKE, Inc. has shown consistent financial performance over the last four years, with quarterly data reflecting steady revenue growth, solid profitability, dedicated capital expenditures, and active share repurchase programs. Here are the key highlights and trends observed from the last several years' financial statements:

• Operating Revenue increased from approximately $12.23 billion in Q4 2022 to $11.72 billion in Q1 2026, demonstrating solid top-line performance with fluctuations consistent with seasonality.
• Net income continued to show strength, growing from about $1.44 billion in Q4 2022 to $727 million in Q1 2026 quarterly basis; recent quarters reflect good profitability.
• Gross Profit margin remains strong, with total gross profit around $4.9 billion in Q1 2026, indicating effective cost control over cost of goods sold (COGS).
• Consistent positive net cash from operating activities, supporting NIKE’s operational efficiency and ability to generate cash flow, although with some quarterly variability.
• Cash & Equivalents steadily increased to about $7.0 billion by Q1 2026, indicating strong liquidity.
• NIKE continues to invest heavily in property, plant, and equipment (PP&E), seeing consistent capital expenditures, reflecting ongoing investment in infrastructure and innovation.
• Active shareholder return program: substantial repurchases of common equity observed, e.g., $126 million in Q1 2026 and over $1 billion in several past quarters, indicating management’s confidence in the company’s value.
• Dividends paid consistently, with payments around $557 million to $594 million quarterly in recent years, reflecting reliable cash returns for shareholders.

• Total liabilities have fluctuated but remained sizeable, around $23 billion to $25 billion generally, with a moderate amount of long-term debt near $7.9 to $9.4 billion, which investors should monitor in context of NIKE's cash generation.
• Changes in operating assets and liabilities can cause notable swings in operating cash flow quarter-over-quarter, reflecting inventory and receivables management.

• There were instances of negative net cash from operating activities, notably in Q1 2024 (-$66 million) and Q1 2023 (-$1.26 billion), primarily driven by increases in working capital needs, which could pressure liquidity if ongoing.
• The company has faced increasing operating costs, including Selling, General, & Administrative expenses and Marketing expenses, which have generally increased along with revenue, but reducing operating margins may be a concern if growth softens.
• NIKE experienced a negative net change in cash and equivalents in multiple quarters over the last four years, occasionally in excess of $1 billion, largely due to high capital expenditures, investments, and share repurchases.
• Inventory levels have remained high, reaching around $9.66 billion in Q1 2023 and about $8.11 billion in Q1 2026, suggesting cautious attention to inventory management and potential risk of overstocking.
• Repurchase and dividend payments absorb significant cash, which may impact NIKE's ability to invest aggressively if revenue or profit growth slows.

Summary: NIKE maintains a strong market position with healthy revenue and profit margins, solid liquidity, and a shareholder-friendly capital allocation approach. The company’s ongoing investments in PP&E and consistent share repurchase and dividend payments underline confidence in its long-term prospects. However, investors should watch for fluctuations in operating cash flow due to working capital changes and potential margin pressure from rising operating costs and inventory levels. Overall, NIKE's financials indicate a stable and mature company with continued growth and shareholder return focus.