GAP (NYSE:GAP) Issues FY 2026 Earnings Guidance

GAP (NYSE:GAP) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 2.350-2.450 for the period, compared to the consensus estimate of 2.330. The company issued revenue guidance of $15.6 billion-$15.6 billion, compared to the consensus revenue estimate of $15.7 billion. GAP also updated its Q3 2026 guidance to EPS.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $27.00 price target (down from $35.00) on shares of GAP in a report on Friday, May 29th. BTIG Research set a $26.00 price objective on GAP in a report on Thursday, July 30th. Wells Fargo & Company restated an “equal weight” rating and set a $22.00 price target (down from $26.00) on shares of GAP in a research report on Friday, August 7th. Morgan Stanley restated an “equal weight” rating and issued a $21.00 price objective on shares of GAP in a report on Monday, July 6th. Finally, Evercore set a $20.00 target price on GAP and gave the stock an “in-line” rating in a report on Friday, May 29th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $26.29.

GAP Stock Down 1.5%

GAP traded down $0.32 on Thursday, hitting $20.84. 20,130,250 shares of the company were exchanged, compared to its average volume of 7,738,723. The firm has a 50-day moving average price of $20.02 and a two-hundred day moving average price of $22.93. The company has a current ratio of 1.81, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41. GAP has a twelve month low of $18.11 and a twelve month high of $29.36. The company has a market cap of $7.50 billion, a price-to-earnings ratio of 8.20, a price-to-earnings-growth ratio of 1.19 and a beta of 2.05.

GAP (NYSE:GAP) last announced its quarterly earnings results on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. The company had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.69 billion. GAP had a return on equity of 21.13% and a net margin of 6.25%.GAP has set its FY 2026 guidance at 2.350-2.450 EPS. On average, equities analysts predict that GAP will post 2.33 earnings per share for the current year.

GAP Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be paid a dividend of $0.175 per share. The ex-dividend date is Wednesday, October 7th. This represents a $0.70 annualized dividend and a dividend yield of 3.4%. GAP’s dividend payout ratio is 27.56%.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap reported quarterly adjusted EPS of $0.52, exceeding the $0.48 analyst consensus. Gross-margin strength and cost discipline helped the company surpass operating-profit expectations despite softer revenue. Gap Second Quarter Earnings Press Release
• Positive Sentiment: The company raised its fiscal 2026 EPS outlook to $2.35-$2.45, above the $2.33 consensus estimate, citing continued momentum at the Gap brand. It also returned $726 million to shareholders through repurchases and dividends year to date. Gap Raises Annual Profit Forecast
• Neutral Sentiment: Gap appointed Michael Francis, a retail executive with experience at Walmart and Target, as Old Navy’s president and CEO effective November 2. He will replace Haio Barbeito, who will become an adviser; the change could support a turnaround but adds near-term execution risk. Gap Announces New Old Navy CEO
• Negative Sentiment: Quarterly net sales fell 2% year over year to $3.65 billion, missing the $3.69 billion consensus, while comparable sales declined 1%. Management’s full-year revenue outlook of approximately $15.6 billion is below the $15.7 billion analyst estimate. Gap Second Quarter Fiscal 2026 Results
• Negative Sentiment: Old Navy reported sluggish performance and declining comparable sales, prompting the leadership shake-up. Third-quarter revenue guidance of about $4.0 billion is broadly in line with expectations, but the lack of an EPS forecast limits visibility into near-term profitability. Gap Cuts Sales Outlook on Old Navy Weakness

Institutional Trading of GAP

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Danske Bank A S acquired a new position in GAP in the 3rd quarter valued at $765,000. Public Employees Retirement System of Ohio lifted its position in shares of GAP by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock valued at $1,537,000 after acquiring an additional 447 shares during the period. Fiduciary Trust Co purchased a new stake in GAP during the third quarter worth $1,716,000. Entropy Technologies LP purchased a new stake in shares of GAP in the 3rd quarter worth about $1,532,000. Finally, Quantitative Investment Management LLC purchased a new stake in shares of GAP in the third quarter valued at about $766,000. 58.81% of the stock is owned by hedge funds and other 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.