BEAVERTON, OREGON — Nike reported third-quarter fiscal 2026 earnings on Tuesday, posting flat revenue of $11.3 billion compared to the prior year and a 35% decline in profits, with margins shrinking under pressure from higher tariffs and discounting. The company's shares fell more than 8% after market close following the announcement.

The company posted earnings of 35 cents per share on $11.28 billion in revenue for the quarter. North America revenue rose 3% to $5.03 billion, while Greater China sales fell 7% to $1.62 billion. Digital sales declined 9%, which the company attributed in part to higher promotional markdowns, and sportswear revenue declined by low double digits during the period.

The running category, which was the first to move into Nike's "sport offense" segment, led growth during the quarter. The sportswear and Jordan streetwear teams moved from defensive strategies to offensive strategies, the company said, though Greater China, the Converse brand, and the sportswear segment are in early stages of their turnaround comebacks.

"The pace of progress is different across the portfolio, and the areas we prioritized first continue to drive momentum," Chief Executive Officer Elliott Hill said in the earnings press release. The company publicly launched its "Win Now" turnaround plan in March 2025 and expects to complete those actions by the end of 2026.

Chief Financial Officer Matthew Friend said the company expects revenues to decline by low single digits compared to the prior year, with gains in North America offset by declines in Greater China. The company warned that sales will decline by 2% to 4% in the current quarter and continue declining for the rest of the calendar year, driven in part by an expected 20% drop in Chinese sales.

Friend said the company expects to end the fourth quarter with elevated inventory due to softness in sportswear, traffic patterns and promotions in Europe, and recent disruptions in the Middle East. Assuming no changes in conditions, higher tariffs for the company are expected to ease after the first quarter of fiscal year 2027, he said.

"I want to move to inspiring and driving growth and having fun," Hill said at an all-hands meeting held on Wednesday. By that afternoon, the company's stock had fallen 14%, according to a recording of the meeting. The shares have fallen by more than 65% over the past five years.

"We're going to be managing costs carefully as we have been doing," Friend said at the meeting.