Zacks Research Comments on GAP’s Q1 Earnings (NYSE:GAP)

The Gap, Inc. (NYSE:GAP) – Research analysts at Zacks Research raised their Q1 2026 EPS estimates for GAP in a report released on Wednesday, April 9th. Zacks Research analyst R. Lohia now expects that the company will post earnings per share of $0.43 for the quarter, up from their previous forecast of $0.42. The consensus estimate for GAP’s current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP’s Q3 2026 earnings at $0.77 EPS, Q4 2026 earnings at $0.58 EPS, FY2026 earnings at $2.36 EPS, Q1 2027 earnings at $0.47 EPS, Q3 2027 earnings at $0.81 EPS, Q4 2027 earnings at $0.61 EPS and FY2027 earnings at $2.53 EPS.

GAP (NYSE:GAP) last announced its quarterly earnings data on Thursday, March 6th. The company reported $0.54 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.18. The business had revenue of $4.15 billion for the quarter, compared to analyst estimates of $4.07 billion. GAP had a net margin of 5.40% and a return on equity of 29.03%.

A number of other research analysts also recently commented on the company. Citigroup dropped their price objective on GAP from $32.00 to $22.00 and set a “buy” rating on the stock in a report on Tuesday. Argus upgraded shares of GAP from a “hold” rating to a “buy” rating and set a $27.00 price target on the stock in a research note on Tuesday, January 21st. Telsey Advisory Group restated a “market perform” rating and set a $26.00 price objective on shares of GAP in a research report on Friday, March 7th. Barclays increased their target price on shares of GAP from $32.00 to $33.00 and gave the company an “overweight” rating in a research report on Friday, March 7th. Finally, Robert W. Baird reduced their price target on shares of GAP from $31.00 to $29.00 and set a “neutral” rating for the company in a research report on Friday, March 7th. Five analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat, GAP presently has a consensus rating of “Moderate Buy” and an average price target of $28.69.

GAP Stock Down 6.4 %

GAP stock opened at $18.99 on Friday. The stock has a market cap of $7.12 billion, a PE ratio of 8.79, a P/E/G ratio of 0.94 and a beta of 2.15. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.54 and a quick ratio of 0.84. The stock’s fifty day moving average is $21.27 and its two-hundred day moving average is $22.42. GAP has a 1-year low of $16.99 and a 1-year high of $26.41.

GAP Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 30th. Investors of record on Wednesday, April 9th will be issued a dividend of $0.165 per share. This is a boost from GAP’s previous quarterly dividend of $0.15. This represents a $0.66 annualized dividend and a yield of 3.48%. The ex-dividend date of this dividend is Wednesday, April 9th. GAP’s dividend payout ratio is currently 29.86%.

Insider Activity at GAP

In related news, Director Elisabeth B. Donohue sold 3,539 shares of the company’s stock in a transaction that occurred on Wednesday, March 12th. The stock was sold at an average price of $21.04, for a total value of $74,460.56. Following the sale, the director now owns 4,000 shares in the company, valued at $84,160. This represents a 46.94 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Julie Gruber sold 1,537 shares of the firm’s stock in a transaction that occurred on Tuesday, March 18th. The shares were sold at an average price of $19.59, for a total value of $30,109.83. Following the completion of the transaction, the insider now directly owns 37,395 shares of the company’s stock, valued at $732,568.05. The trade was a 3.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 177,495 shares of company stock worth $3,598,459 over the last 90 days. Company insiders own 31.00% of the company’s stock.

Institutional Trading of GAP

Several large investors have recently bought and sold shares of the company. GAMMA Investing LLC acquired a new position in shares of GAP during the 1st quarter worth $1,971,000. California State Teachers Retirement System purchased a new position in GAP during the 4th quarter valued at about $4,953,000. Finally, Rhumbline Advisers acquired a new position in GAP during the first quarter worth about $12,210,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

GAP Company Profile

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.