What is Zacks Research's Estimate for GAP FY2027 Earnings?

Key Points

• Zacks Research raised GAP’s FY2027 EPS estimate to $2.41 from $2.31, matching the current consensus forecast.
• Zacks also projects EPS of $2.62 for FY2028 and $2.81 for FY2029, though it made modest downward revisions to several quarterly and FY2029 estimates.
• GAP recently reported quarterly EPS of $0.52, beating expectations, while revenue fell 2% year over year to $3.65 billion; the company maintained FY2026 EPS guidance of $2.35–$2.45.

The Gap, Inc. (NYSE:GAP - Free Report) - Investment analysts at Zacks Research lifted their FY2027 EPS estimates for shares of GAP in a note issued to investors on Thursday, September 10th. Zacks Research analyst Team now anticipates that the company will earn $2.41 per share for the year, up from their prior estimate of $2.31. The consensus estimate for GAP's current full-year earnings is $2.41 per share. Zacks Research also issued estimates for GAP's Q4 2027 earnings at $0.73 EPS, Q2 2028 earnings at $0.61 EPS, Q3 2028 earnings at $0.87 EPS, Q4 2028 earnings at $0.66 EPS, FY2028 earnings at $2.62 EPS, Q1 2029 earnings at $0.53 EPS, Q2 2029 earnings at $0.68 EPS and FY2029 earnings at $2.81 EPS.

GAP has been the subject of several other reports. Wells Fargo & Company boosted their price target on GAP from $22.00 to $23.00 and gave the company a "cautious" rating in a research note on Friday, August 28th. BMO Capital Markets assumed coverage on GAP in a report on Tuesday. They set a "market perform" rating and a $23.00 target price for the company. The Goldman Sachs Group boosted their target price on shares of GAP from $25.00 to $27.00 and gave the company a "buy" rating in a research report on Monday, August 31st. Jefferies Financial Group downgraded shares of GAP from a "buy" rating to a "hold" rating and decreased their price target for the company from $29.00 to $23.00 in a research note on Wednesday, August 12th. Finally, Evercore set a $20.00 price target on shares of GAP and gave the stock an "in-line" rating in a research report on Friday, May 29th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, GAP presently has an average rating of "Hold" and an average target price of $27.07.

GAP Price Performance

Shares of NYSE GAP opened at $20.93 on Friday. The firm has a market cap of $7.35 billion, a P/E ratio of 6.25, a price-to-earnings-growth ratio of 0.91 and a beta of 2.08. The company has a current ratio of 1.82, a quick ratio of 1.11 and a debt-to-equity ratio of 0.38. GAP has a 1-year low of $18.11 and a 1-year high of $29.36. The business's 50 day moving average is $20.47 and its 200-day moving average is $22.47.

GAP (NYSE:GAP - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.04. GAP had a net margin of 8.14% and a return on equity of 19.72%. The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.69 billion. During the same period last year, the business posted $0.57 earnings per share. The business's revenue for the quarter was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS.

GAP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, October 7th will be issued a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 annualized dividend and a yield of 3.3%. GAP's payout ratio is currently 20.90%.

Institutional Trading of GAP

A number of institutional investors have recently modified their holdings of the stock. Cullen Frost Bankers Inc. acquired a new position in GAP in the fourth quarter valued at about $26,000. Global Retirement Partners LLC acquired a new stake in GAP during the second quarter worth about $29,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in GAP during the second quarter worth about $50,000. Quantbot Technologies LP bought a new position in GAP in the 2nd quarter valued at about $73,000. Finally, Westpac Banking Corp bought a new position in GAP in the 2nd quarter valued at about $103,000. 58.81% of the stock is currently owned by institutional investors.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: BMO Capital Markets upgraded GAP to “hold,” a less bearish stance that may reduce selling pressure and indicates the firm no longer expects meaningful underperformance. Zacks analyst action
• Positive Sentiment: Zacks Research raised its FY2027 EPS forecast to $2.41 from $2.31 and its FY2028 forecast to $2.62 from $2.55. It also increased Q4 2027 EPS to $0.73 from $0.63, Q3 2028 EPS to $0.87 from $0.83, and Q4 2028 EPS to $0.66 from $0.62. These revisions suggest improved longer-term earnings expectations.
• Positive Sentiment: GAP has hired a Paramount executive to help expand its brands beyond traditional apparel, signaling a strategy to create new growth channels and broaden its consumer reach. Gap taps a new executive to find its next act beyond fashion
• Neutral Sentiment: The current full-year EPS consensus remains $2.41, in line with the company’s FY2026 guidance range midpoint and unchanged by the latest estimate activity. This provides a stable baseline but no new near-term catalyst.
• Negative Sentiment: Zacks reduced estimates for Q1 2029 EPS to $0.53 from $0.56, Q2 2029 EPS to $0.68 from $0.71, Q2 2028 EPS to $0.61 from $0.62, and FY2029 EPS to $2.81 from $2.82. The cuts indicate some longer-term uncertainty despite the upgrades elsewhere.
• Negative Sentiment: Broader specialty-retail sentiment remains cautious: Victoria’s Secret raised guidance after beating earnings estimates, but its shares weakened as comparable-sales growth slowed and valuation concerns persisted. That backdrop may weigh on apparel-retail stocks, including GAP. Victoria’s Secret’s Comeback Is Real—The Stock’s Problem Is Different

About GAP

Gap Inc is an American specialty apparel retailer founded in 1969 by Donald and Doris Fisher in San Francisco, California. The company operates a portfolio of consumer brands focused on clothing, accessories and personal-care products for women, men and children.

Its principal brands include Old Navy, Gap, Banana Republic and Athleta. Products are sold through company-operated stores, franchise locations and digital channels, with offerings spanning casual apparel, denim, activewear, accessories and lifestyle products.

Gap Inc serves customers in North America and selected international markets through its retail and e-commerce operations.

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