NKE · 10-K · 2026A · Full report
Income Tax Rate Changes
NIKE, Inc. · 2026-07-15 · Importance 38 · Surprise 58
The effective tax rate increased to 20.3% in fiscal 2026 from 17.1% in fiscal 2025, a 320 basis‑point increase. Management attributes the higher effective rate primarily to the absence of a prior‑year one‑time, non‑cash deferred tax benefit provided by U.S. tax regulations related to foreign currency gains and losses. The higher effective rate contributed to fiscal 2026 income tax expense of approximately $1,000 million and reduced net income margin to 6.7% for the year ended May 31, 2026. The tax rate change is presented as a key driver of the year‑over‑year net income decline despite relatively stable EBIT.