--- title: "Is NIKE Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/nike-stock publisher: HalalWallet license: CC BY 4.0 verdict: halal verdict_label: Halal entity_type: stock ticker: NKE exchange: NYSE last_reviewed: 2026-06-15 data_as_of: 2026-02-28 standards_disagree: false authorities_with_position: 3 authority_agreement: unanimous --- # Is NIKE Stock Halal? **Authority consensus:** All 3 halal screening authorities with a published position rate NIKE, Inc. halal. **Verdict: Halal** (Generally permissible) 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. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence 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 Result: Pass 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 (AAOIFI) Data as of: 2026-02-28 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 16.8% | < 30% | Pass | | Cash + interest-bearing securities / market cap | 12.1% | < 30% | Pass | | Impermissible income / total revenue | 0.9% | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it 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 threshold | 16.8% | 12.1% | < 33% of market cap | Pass | | MSCI Islamic / FTSE Yasaar basis | 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 < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## Scholars' and screeners' positions - **SP Funds S&P 500 Sharia ETF (SPUS)**: Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund. ([source](https://www.sp-funds.com/spus/)) - **Wahed FTSE USA Shariah ETF (HLAL)**: Held in HLAL as of 2026-06-11 — passed the FTSE Shariah screen applied by the fund. ([source](https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm)) ## 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. ## Sources - NKE latest quarterly filing (balance sheet 2026-02-28) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=NIKE%2C%20Inc.&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - Nike FY2025 10-K revenue disaggregation (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/320187/000032018725000047/R43.htm) - Nike FY2025 10-K (company filing PDF) (https://materials.proxyvote.com/Approved/654106/20250709/FO10K_614373/images/NIKE-10K2025.pdf) - SPUS holdings (SP Funds) (https://www.sp-funds.com/spus/) - HLAL Schedule of Investments 2026-02-28 (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm) ## Frequently asked questions ### Is NIKE, Inc. (NKE) stock halal? Yes, under our AAOIFI-based methodology NIKE, Inc. passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-02-28). Check the dated ratio table before investing; ratios move with the share price. ### Does NIKE, Inc. pass the AAOIFI financial ratio screen? As of 2026-02-28: interest-bearing debt is 16.8% of market cap (limit < 30%); cash plus interest-bearing securities is 12.1% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is NIKE, Inc. held in halal ETFs like SPUS or HLAL? Yes — as of our last check, NIKE, Inc. is held by SPUS and HLAL. ETF inclusion confirms it passed those funds' Shariah screens at the holdings date cited in the sources below. ### Do I need to purify dividends from NIKE, Inc.? Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income. ## Related verdicts - [Is Apple Stock Halal?](https://www.halalwallet.ca/is-it-halal/apple-stock.md) — Halal - [Is Meta Platforms Stock Halal?](https://www.halalwallet.ca/is-it-halal/meta-platforms-stock.md) — Halal - [Is Microsoft Stock Halal?](https://www.halalwallet.ca/is-it-halal/microsoft-stock.md) — Halal - [Is NVIDIA Stock Halal?](https://www.halalwallet.ca/is-it-halal/nvidia-stock.md) — Halal - [Is PepsiCo Stock Halal?](https://www.halalwallet.ca/is-it-halal/pepsico-stock.md) — Halal - [Is Salesforce Stock Halal?](https://www.halalwallet.ca/is-it-halal/salesforce-stock.md) — Halal --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md