GAP (NYSE:GAP) Announces Quarterly Earnings Results

Key Points

• GAP reported quarterly EPS of $0.52, exceeding the $0.48 consensus estimate, while revenue of $3.65 billion fell short of the $3.69 billion forecast. The company updated its FY 2026 EPS guidance to $2.35–$2.45.
• Shares declined 1.5% to $20.84 following the results. GAP also declared a quarterly dividend of $0.175 per share, equivalent to $0.70 annually and a 3.4% yield.
• Analyst sentiment remains cautious, with several firms cutting price targets or downgrading the stock; however, MarketBeat’s consensus rating is “Moderate Buy” with a $26.29 price target.

GAP (NYSE:GAP - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.48 by $0.04, FiscalAI reports. The business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.69 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. GAP updated its FY 2026 guidance to 2.350-2.450 EPS.

GAP Trading Down 1.5%

NYSE:GAP traded down $0.32 on Thursday, hitting $20.84. The stock had a trading volume of 19,282,755 shares, compared to its average volume of 7,738,723. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. The stock has a market cap of $7.50 billion, a price-to-earnings ratio of 8.20, a PEG ratio of 1.19 and a beta of 2.05. The company has a fifty day moving average price of $20.02 and a two-hundred day moving average price of $22.93. GAP has a 1-year low of $18.11 and a 1-year high of $29.36.

GAP Announces Dividend

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in GAP. Ameriprise Financial Inc. grew its position in GAP by 4.1% in the third quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company's stock worth $98,154,000 after acquiring an additional 180,991 shares during the period. Jump Financial LLC raised its position in GAP by 2,197.8% in the third quarter. Jump Financial LLC now owns 645,150 shares of the company's stock valued at $13,800,000 after purchasing an additional 617,073 shares during the period. California State Teachers Retirement System raised its position in GAP by 0.8% in the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company's stock valued at $4,940,000 after purchasing an additional 1,703 shares during the period. Lazard Asset Management LLC lifted its stake in shares of GAP by 146.4% in the 2nd quarter. Lazard Asset Management LLC now owns 123,726 shares of the company's stock valued at $2,697,000 after purchasing an additional 73,516 shares during the last quarter. Finally, Campbell & CO Investment Adviser LLC acquired a new position in shares of GAP in the 4th quarter valued at $2,682,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages recently commented on GAP. Evercore set a $20.00 price target on GAP and gave the stock an "in-line" rating in a research report on Friday, May 29th. Wells Fargo & Company reiterated an "equal weight" rating and issued a $22.00 target price (down from $26.00) on shares of GAP in a research report on Friday, August 7th. Jefferies Financial Group downgraded shares of GAP from a "buy" rating to a "hold" rating and decreased their price target for the stock from $29.00 to $23.00 in a research note on Wednesday, August 12th. Barclays restated an "equal weight" rating and set a $20.00 price target (down from $26.00) on shares of GAP in a research report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $27.00 price objective (down from $35.00) on shares of GAP in a report on Friday, May 29th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $26.29.

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.

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