GAP (NYSE:GAP) Issues FY 2026 Earnings Guidance

Key Points

• GAP updated its FY 2026 guidance to EPS of $2.30-$2.40 and revenue of $15.5 billion-$15.7 billion, roughly in line with Wall Street expectations.
• The company’s latest quarter was slightly below estimates, with EPS of $0.38 versus $0.39 expected and revenue of $3.50 billion versus $3.52 billion forecast.
• Despite the mixed results, the stock rose 3.7% on the day, and analysts currently maintain a Moderate Buy consensus with an average price target of $30.07.

GAP (NYSE:GAP - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. 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.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. BTIG Research reduced their price target on shares of GAP from $31.00 to $28.00 and set a "buy" rating for the company in a report on Wednesday, May 20th. TD Cowen reduced their price target on shares of GAP from $32.00 to $26.00 and set a "buy" rating for the company in a report on Monday, May 18th. The Goldman Sachs Group increased their target price on GAP from $29.00 to $32.00 and gave the stock a "buy" rating in a report on Friday, January 30th. Citigroup increased their target price on GAP from $25.00 to $27.00 and gave the stock a "neutral" rating in a report on Friday, March 6th. Finally, Weiss Ratings upgraded GAP from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, March 25th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $30.07.

GAP Stock Up 3.7%

Shares of NYSE:GAP traded up $0.90 during mid-day trading on Thursday, reaching $24.95. 15,314,255 shares of the stock were exchanged, compared to its average volume of 7,784,785. The company has a quick ratio of 1.08, a current ratio of 1.75 and a debt-to-equity ratio of 0.39. The company has a market cap 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. GAP has a one year low of $18.68 and a one year high of $29.36. The stock's 50 day simple moving average is $24.24 and its 200-day simple moving average is $25.68.

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

GAP Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th will be given a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 2.8%. GAP's payout ratio is currently 32.56%.

Insiders Place Their Bets

In related news, insider Amanda J. Thompson sold 25,000 shares of GAP stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $25.14, for a total value of $628,500.00. Following the sale, the insider owned 86,228 shares of the company's stock, valued at approximately $2,167,771.92. The trade was a 22.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Eric Kayen Chan sold 13,377 shares of GAP stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $26.18, for a total value of $350,209.86. Following the completion of the sale, the insider directly owned 21,967 shares in the company, valued at approximately $575,096.06. This represents a 37.85% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 923,098 shares of company stock valued at $22,648,158 in the last quarter. 31.00% of the stock is currently owned by corporate insiders.

More GAP News

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 Trading of GAP

A number of hedge funds and other institutional investors have recently modified their holdings of GAP. EverSource Wealth Advisors LLC increased its position in shares of GAP by 177.0% in the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company's stock valued at $153,000 after acquiring an additional 4,483 shares during the last quarter. Atlas Capital Advisors Inc. acquired a new stake in shares of GAP in the fourth quarter valued at about $203,000. Amundi acquired a new stake in shares of GAP in the first quarter valued at about $259,000. Brooklyn Investment Group bought a new position in GAP during the fourth quarter worth about $312,000. Finally, Jump Financial LLC bought a new position in GAP during the second quarter worth about $612,000. Institutional investors and hedge funds own 58.81% of the company's stock.

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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