NKE · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

NIKE, Inc. · 2026-10-02 · Importance 39 · Surprise 50

The effective tax rate increased to 22.7% in the first quarter of fiscal 2027 from 21.1% in the prior-year period, a 160-basis-point increase. The increase was primarily due to foreign tax audit settlements recognized in the current year. Income tax expense therefore reduced the conversion of pre-tax earnings into net income relative to the prior year. NIKE reported net income of $712 million in the quarter, down 2% from $727 million.

Key facts

• Our effective tax rate increased from 21.1% to 22.7% primarily due to foreign tax audit settlements recognized in the current year. source