Nike reported quarterly earnings and revenue that beat Wall Street expectations, driven by strong North American sales, though shares fell about 10% in after-hours trading due to weakness in China.

For its second fiscal quarter of 2026, Nike posted earnings of 53 cents per share versus 38 cents expected, and revenue of $12.43 billion versus $12.22 billion expected.

North American sales rose 9% to $5.63 billion, while Greater China revenue fell 17% to $1.42 billion, with ongoing challenges from higher tariffs and a struggling Converse brand.

CEO Elliott Hill emphasized that Nike is mid-turnaround, focusing on inventory management, digital improvements, and new initiatives like the upcoming Nike Mind footwear platform, CNBC has reported.

Despite some areas of growth, Nike expects modest revenue gains in North America and a decline in gross margins next quarter, while shares have dropped over 13% year-to-date.