GAP (NYSE:GAP) Issues FY 2026 Earnings Guidance

GAP (NYSE:GAP) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 2.300-2.400 for the period, compared to the consensus EPS estimate of 2.330. The company issued revenue guidance of $15.5 billion-$15.7 billion, compared to the consensus revenue estimate of $15.7 billion. GAP also updated its Q2 2026 guidance to EPS.

GAP Trading Up 3.7%

GAP traded up $0.90 during mid-day trading on Thursday, reaching $24.95. The stock had a trading volume of 15,314,255 shares, compared to its average volume of 7,784,785. The stock has a market capitalization of $9.11 billion, a P/E ratio of 11.60, a P/E/G ratio of 1.36 and a beta of 2.11. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.08 and a current ratio of 1.75. The firm’s fifty day simple moving average is $24.24 and its two-hundred day simple moving average is $25.68. GAP has a 52 week low of $18.68 and a 52 week high of $29.36.

GAP (NYSE:GAP) last announced its quarterly earnings data on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). The firm had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.52 billion. GAP had a net margin of 5.31% and a return on equity of 22.98%. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, equities analysts predict that GAP will post 2.29 EPS for the current year.

GAP Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 29th. Shareholders of record on Wednesday, July 8th will be given a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Wednesday, July 8th. GAP’s dividend payout ratio (DPR) is presently 32.56%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on GAP shares. Wall Street Zen lowered GAP from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. TD Cowen decreased their price objective on GAP from $32.00 to $26.00 and set a “buy” rating on the stock in a research report on Monday, May 18th. The Goldman Sachs Group increased their price objective on GAP from $29.00 to $32.00 and gave the company a “buy” rating in a research report on Friday, January 30th. BTIG Research decreased their price objective on GAP from $31.00 to $28.00 and set a “buy” rating on the stock in a research report on Wednesday, May 20th. Finally, Citigroup increased their price objective on GAP from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday, March 6th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $30.07.

Insiders Place Their Bets

In other news, CFO Katrina O’connell sold 153,413 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $23.85, for a total value of $3,658,900.05. Following the transaction, the chief financial officer directly owned 11,503 shares in the company, valued at $274,346.55. This trade represents a 93.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder John J. Fisher sold 300,000 shares of the firm’s stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $25.40, for a total value of $7,620,000.00. Following the completion of the transaction, the insider owned 446,781 shares in the company, valued at $11,348,237.40. This represents a 40.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 923,098 shares of company stock worth $22,648,158 over the last three months. Insiders own 31.00% of the company’s stock.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap said first-quarter net sales rose 1% and comparable sales increased 2%, marking its ninth straight quarter of positive comps, while gross margin of 40.5% exceeded its outlook. The company also raised its full-year EPS guidance, signaling management still expects improved profitability. Article Title
• Neutral Sentiment: Gap reported Q1 EPS of $0.38, slightly below the $0.39 consensus, and revenue of $3.50 billion versus expectations for $3.52 billion. The miss was modest, but it added to investor caution heading into the call and results release. Article Title
• Neutral Sentiment: The company’s updated FY 2026 guidance of $2.30-$2.40 EPS and $15.5 billion-$15.7 billion in revenue was broadly in line to slightly above analyst expectations, suggesting only limited upside surprise from the new outlook. Article Title
• Negative Sentiment: Management cut sales guidance after saying Old Navy’s spring and summer assortment did not resonate with shoppers, which led to weaker-than-expected performance and a lower full-year revenue outlook. That slowdown is the main reason the stock is under pressure despite the earnings beat. Article Title

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC boosted its position in shares of GAP by 177.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock worth $153,000 after purchasing an additional 4,483 shares during the last quarter. Atlas Capital Advisors Inc. acquired a new stake in GAP during the 4th quarter worth $203,000. Brooklyn Investment Group acquired a new stake in GAP during the 4th quarter worth $312,000. Amundi acquired a new stake in GAP during the 1st quarter worth $259,000. Finally, Jump Financial LLC acquired a new stake in GAP during the 2nd quarter worth $612,000. 58.81% of the stock is currently owned by institutional investors.

About GAP

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.