Nike Earnings Preview: Expect A Better Quarter, But Elliott Is Still Running A Marathon With A Piano On His Back
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Brian Gilmartin, CFA11.09K FollowersFollow5ShareSavePlay(7min)CommentsSummaryWhen Nike reports their fiscal Q2 ’26 financial results on December 18, consensus is expecting $12.22 billion in revenue, $696 million in operating income, and $0.38 in EPS.China is still 13% of total Nike revenue and 40% of EBIT; thus, it’s not an immaterial region for the shoe giant, but given the tariff environment, I wouldn’t expect great improvement in the regional metrics.At 40x expected fiscal EPS of $1.68, Nike is still expected to show EPS down y-o-y 22%. Thank you for your assistant/iStock Editorial via Getty Images When Nike (NKE) reports their fiscal Q2 ’26 financial results after the bell on Thursday, December 18, 2025, consensus is expecting $12.22 billion in revenue, $696 million in operating income, and $0.38 in EPS, for expected year-over-year (y-o-y) growth of -1%, -50%, and -51%.This article was written byBrian Gilmartin, CFA11.09K FollowersFollowBrian Gilmartin, is a portfolio manager at Trinity Asset Management, a firm he founded in May, 1995, catering to individual investors and institutions that werent getting the attention and service deserved, from larger firms. Brian started in the business as a fixed-income / credit analyst, with a Chicago broker-dealer, and then worked at Stein Roe & Farnham in Chicago, from 1992 - 1995, before striking out on his own and managing equity and balanced accounts for clients. Brian has a BSBA (Finance) from Xavier University, Cincinnati, Ohio, (1982) and an MBA (Finance) from Loyola University, Chicago, January, 1985. The CFA was awarded in 1994. Brian has been fortunate enough to write for the TheStreet.com from 2000 to 2012, and then the WallStreet AllStars from August 2011, to Spring, 2012. Brian also wrote for Minyanville.com, and has been quoted in numerous publications including the Wall Street Journal.Quick InsightsHow does NKE's current valuation compare to historical levels?NKE now trades at 1.7x trailing revenue, below 2x for the first time since 2014, and at a 35% discount to Morningstar's $104 intrinsic value estimate.What are the key drivers and risks for NKE's near-term performance?North American EBIT is improving, but tariff impacts and competitive share losses limit near-term upside; a dramatic turnaround is not imminent, though stabilization is underway.How does NKE's earnings quality and cash flow support its investment case?Cash flow and free cash flow now fully cover net income, with a 3% free-cash-flow yield, indicating improved earnings quality despite lower absolute cash flow levels.Recommended For You