Nike at a glance, September 15, 2026
| Share price | $36.22, down about half from the 52-week high |
| Diluted shares, millions | 1,481 |
| Market value of equity, $ million | about 53,600 |
| Dividend per share, fiscal 2026 | $1.63 |
| Dividend yield | 4.5 percent |
What the analysts assume
| Analysts covering Nike | 40, consensus Hold |
| Price targets: low, median, average, high | $23, $46, $50, $94 |
| Fiscal 2026 EPS, as the analysts adjust it | $1.58, against $2.10 reported |
| Fiscal 2027 revenue, $ million | 45,600, down 1.7 percent |
| Fiscal 2027 EPS | $1.71, up 8.5 percent |
The rates, given for today
Cost of equity 9 percent. Cost of capital 8.5 percent. Where they come from is Session 5.
Fiscal 2026, from the statements below
| Revenue | 46,398, flat on the year |
| Gross margin | 42.9 percent |
| Effective tax rate | 20.3 percent: income tax expense 792 on income before taxes of 3,900 |
| Return on equity | 21 percent: net income 3,108 on shareholders' equity of 14,865 at May 31, 2026 |
| Debt | 7,942 at May 31, 2026, against 7,961 a year earlier, so net borrowing about zero |
| Cash and short-term investments | about 9,000, so net debt is about (1,060): cash exceeds debt |
Free cash flow, fiscal 2026
| $ million |
|---|
| Cash from operations | 2,868 |
| Add back after-tax interest paid | 257 |
| Less capital spending | (684) |
| Free cash flow to the firm | 2,441 |
| Less after-tax interest paid | (257) |
| Free cash flow to equity | 2,184 |
| Dividends paid | 2,407 |
| Shares repurchased and retired | 123 |
| Cash paid for repurchases | 146 |
Interest paid 323, taxed at the 20.3 percent effective rate, is 257 after tax. Net borrowing was about zero, so free cash flow to equity is cash from operations less capital spending.
Dividend per share declared, fiscal years ended May 31
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|
| 0.62 | 0.70 | 0.78 | 0.86 | 0.955 | 1.07 | 1.19 | 1.325 | 1.45 | 1.57 | 1.63 |
The statements, from the 10-K filed July 15, 2026
$ million, fiscal years ended May 31. The main lines only; the full filing is on EDGAR. Fiscal 2026 net income includes a one-time tariff recovery of 986 before tax, about 790 after tax at the 20.3 percent effective rate, and about 300 of it was received in cash during the year. Find the line.
Income statement, fiscal years ended May 31, 2024 to 2026
| 2024 | 2025 | 2026 |
|---|
| Revenues | 51,362 | 46,309 | 46,398 |
| Cost of sales | 28,475 | 26,519 | 26,487 |
| Gross profit | 22,887 | 19,790 | 19,911 |
| Selling and administrative expense | 16,576 | 16,088 | 16,114 |
| of which demand creation | 4,285 | 4,689 | 4,754 |
| Interest income, net | 161 | 107 | 50 |
| Other income, net | 228 | 76 | 53 |
| Income before income taxes | 6,700 | 3,885 | 3,900 |
| Income tax expense | 1,000 | 666 | 792 |
| Effective tax rate | 14.9% | 17.1% | 20.3% |
| Net income | 5,700 | 3,219 | 3,108 |
| Diluted earnings per share | $3.73 | $2.16 | $2.10 |
| Diluted shares, millions | 1,530 | 1,488 | 1,481 |
Balance sheet, at May 31, 2024 to 2026
| 2024 | 2025 | 2026 |
|---|
| Cash and equivalents | 9,860 | 7,464 | 7,563 |
| Short-term investments | | | about 1,440 |
| Accounts receivable, net | 4,427 | 4,717 | 5,931 |
| Inventories | 7,519 | 7,489 | 7,501 |
| Total current assets | 25,382 | 23,362 | 24,603 |
| Property, plant and equipment, net | 5,000 | 4,828 | 4,796 |
| Operating lease right-of-use assets | 2,718 | 2,712 | 2,838 |
| Goodwill and intangibles | 499 | 499 | 499 |
| Total assets | 38,110 | 36,579 | 38,410 |
| Current portion of long-term debt | 1,000 | 0 | 2,000 |
| Accounts payable | 2,851 | 3,479 | 3,600 |
| Accrued liabilities | 5,725 | 5,916 | 6,092 |
| Total current liabilities | 10,593 | 10,566 | 12,547 |
| Long-term debt | 7,903 | 7,961 | 5,942 |
| Operating lease liabilities, noncurrent | 2,566 | 2,550 | 2,613 |
| Total liabilities | 23,680 | 23,366 | 23,545 |
| Shareholders' equity | 14,430 | 13,213 | 14,865 |
Cash flow statement, fiscal years ended May 31, 2024 to 2026
| 2024 | 2025 | 2026 |
|---|
| Net income | 5,700 | 3,219 | 3,108 |
| Depreciation and amortization | 796 | 775 | 747 |
| Stock-based compensation | 804 | 709 | 715 |
| Change in accounts receivable | (329) | (257) | (1,207) |
| Change in inventories | 908 | 120 | (31) |
| Cash provided by operations | 7,429 | 3,698 | 2,868 |
| Additions to property, plant and equipment | (812) | (430) | (684) |
| Cash from investing | 894 | (275) | (488) |
| Repurchase of common stock | (4,250) | (2,985) | (146) |
| Dividends paid | (2,169) | (2,300) | (2,407) |
| Repayment of debt | 0 | (1,000) | 0 |
| Cash from financing | (5,888) | (5,820) | (2,292) |
| Interest paid | 381 | 389 | 323 |
| Income taxes paid | 1,299 | 1,226 | 1,270 |
The task. Thirty-five minutes.
- A value per share from the dividend growth model, with the perpetual growth rate and where it came from.
- The growth rate $36.22 assumes at a 9 percent cost of equity, against the analysts' growth above. Why do the two differ?
- The growth rate moved one point, everything else fixed: the change in value per share.
- If you finish: free cash flow to the firm at the 8.5 percent cost of capital, less net debt, per share. Does it agree with your value?
At 32 minutes, enter your row under Calls. AI is open. Every number is yours to defend.
While you work
- Is the dividend a forecast or a promise?
- What does the tariff recovery do to the earnings you are growing from?
- What is in $7.5 billion of inventory?
- Why would a value from free cash flow differ from a value from dividends?
Fiscal 2026 figures from the 10-K; price and consensus from public data on September 15, 2026.