GAP (NYSE:GAP) Issues FY 2026 Earnings Guidance

Key Points

• FY 2026 guidance: GAP expects EPS of $2.35–$2.45, above the $2.33 analyst consensus, while revenue guidance of $15.6 billion is slightly below the $15.7 billion estimate.
• Analyst sentiment remains mixed: GAP has an overall “Moderate Buy” rating and a consensus price target of $26.29, though several firms recently lowered their targets or downgraded the stock.
• Shareholder returns: GAP declared a quarterly dividend of $0.175 per share, equal to $0.70 annually and a 3.4% yield; institutional investors own 58.81% of the company.

GAP (NYSE:GAP - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 2.350-2.450 for the period, compared to the consensus EPS 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.

Analyst Upgrades and Downgrades

Several research firms have recently commented on GAP. BTIG Research set a $26.00 price objective on GAP in a report on Thursday, July 30th. Evercore set a $20.00 price target on GAP and gave the company an "in-line" rating in a report on Friday, May 29th. Wells Fargo & Company restated an "equal weight" rating and set a $22.00 price objective (down from $26.00) on shares of GAP in a research report on Friday, August 7th. Jefferies Financial Group lowered shares of GAP from a "buy" rating to a "hold" rating and reduced their target price for the stock from $29.00 to $23.00 in a report on Wednesday, August 12th. Finally, Bank of America dropped their price target on GAP from $29.00 to $26.00 and set a "neutral" rating for the company in a research note on Friday, May 29th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $26.29.

GAP Stock Performance

Shares of GAP traded down $0.32 during mid-day trading on Thursday, reaching $20.84. The company had a trading volume of 19,282,755 shares, compared to its average volume of 7,738,723. GAP has a 52-week low of $18.11 and a 52-week high of $29.36. 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 50 day moving average of $20.02 and a two-hundred day moving average of $22.93. The stock has a market capitalization of $7.50 billion, a P/E ratio of 8.20, a PEG ratio of 1.19 and a beta of 2.05.

GAP (NYSE:GAP - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.04. The firm had revenue of $3.65 billion during 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 has set its FY 2026 guidance at 2.350-2.450 EPS. On average, analysts expect that GAP will post 2.33 earnings per share for the current year.

GAP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be paid a $0.175 dividend. This represents a $0.70 annualized dividend and a dividend yield of 3.4%. The ex-dividend date is Wednesday, October 7th. GAP's dividend payout ratio (DPR) is presently 27.56%.

Institutional Investors Weigh In On GAP

Hedge funds have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio increased its position in GAP by 2.7% during the fourth quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company's stock worth $1,890,000 after buying an additional 1,945 shares in the last quarter. Russell Investments Group Ltd. raised its stake in GAP by 94.8% during the fourth quarter. Russell Investments Group Ltd. now owns 72,239 shares of the company's stock worth $1,849,000 after acquiring an additional 35,146 shares during the period. Captrust Financial Advisors increased its stake in GAP by 34.4% during the 4th quarter. Captrust Financial Advisors now owns 61,792 shares of the company's stock valued at $1,582,000 after buying an additional 15,816 shares during the period. Atlas Capital Advisors Inc. acquired a new position in GAP in the fourth quarter worth approximately $203,000. Finally, Brooklyn Investment Group acquired a new stake in GAP during the 4th quarter worth about $312,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source