Is NIKE Stock Halal?
NIKE, Inc. · NKE · NYSE
NIKE, Inc. (NKE) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-02-28) interest-bearing debt is 16.8% of market cap and cash plus interest-bearing securities 12.1% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETFs SPUS and HLAL, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-02-28 · Screening basis: AAOIFI · Last reviewed 2026-06-15
Our Analysis
Nike is one of the cleaner large-cap consumer names from a Shariah business-activity standpoint. It designs and sells athletic footwear, apparel, and equipment, with fiscal 2025 revenue of $46.3 billion driven by NIKE Brand footwear ($29.5 billion) and apparel ($13.0 billion), plus the smaller Converse brand ($1.7 billion). There is no prohibited-industry revenue in the product portfolio, so screening comes down to financial ratios such as leverage and the share of interest income.
Here the professional evidence is well aligned. Nike is held by both of the major US Shariah ETFs: it appears in SPUS as of June 11, 2026 and in HLAL's SEC-filed schedule of investments as of February 28, 2026. When two funds applying different index methodologies (S&P 500 Shariah Industry Exclusions and FTSE USA Shariah) both include the same stock, that is strong corroboration that it passes professional screens at those dates.
For a Muslim retail investor, Nike currently presents as a screen-passing name where the decision can focus on ordinary investment considerations such as brand momentum and valuation rather than on compliance. As always, the ratio-based portion of compliance can shift with the balance sheet over time, so it remains worth confirming the current status in a live screener before buying.
Business Activity Screen
NIKE, Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories under the NIKE and Jordan brands, plus the Converse brand. Per its fiscal 2025 10-K (year ended May 31, 2025; filed July 2025), total revenues were $46,309 million: NIKE Brand $44,714M (footwear $29,510M, apparel $12,965M, equipment $2,191M, and global brand divisions) and Converse $1,692M, with a small corporate hedging offset.
Designing and selling athletic footwear and apparel is a permissible business with no prohibited product line. The only Shariah inputs are financial: Nike earns some interest income on its cash and investments (not separately verified here) and carries modest debt, both measured against AAOIFI ratio thresholds. Nike is currently held by BOTH SPUS (87,792 shares as of 2026-06-11) and HLAL (31,789 Class B shares as of 2026-02-28), indicating it passes the industry and financial-ratio screens of both major US Shariah methodologies as of those dates.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 16.8% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 12.1% | < 30% | Pass |
| Impermissible income / total revenueInterest income $404.0M on $46.31B total revenue (NIKE, Inc. FY2025 (fiscal year ended 2025-05-31, Form 10-K)) = 0.9% — under AAOIFI's 5% limit. | 0.9% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-02-28 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How NIKE screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 16.8% | 12.1% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 16.8% | 12.1% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 21.7% | 21.7% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-02-28) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether NIKE, Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
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