Analysts Set Expectations for GAP's Q3 Earnings (NYSE:GAP)

Key Points

• Analysts at Zacks Research have downgraded their Q3 2026 earnings estimate for The Gap, Inc. to $0.57 per share, down from a previous prediction of $0.67, and currently maintain a "Strong Sell" rating for the stock.
• The company's price targets have been significantly reduced by various analysts; for instance, Telsey Advisory Group decreased their target from $26.00 to $24.00, while Citigroup lowered theirs from $30.00 to $22.00.
• GAP has announced a quarterly dividend of $0.165 per share to be paid on October 29th, with a current yield of 2.7% based on a payout ratio of 28.21%.

The Gap, Inc. (NYSE:GAP - Free Report) - Equities researchers at Zacks Research dropped their Q3 2026 earnings estimates for GAP in a note issued to investors on Thursday, September 11th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $0.57 for the quarter, down from their prior estimate of $0.67. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for GAP's current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP's Q4 2026 earnings at $0.42 EPS, FY2026 earnings at $2.07 EPS, Q2 2027 earnings at $0.60 EPS, Q3 2027 earnings at $0.61 EPS, Q4 2027 earnings at $0.44 EPS, FY2027 earnings at $2.14 EPS, Q2 2028 earnings at $0.68 EPS and FY2028 earnings at $2.45 EPS.

A number of other brokerages have also issued reports on GAP. Barclays lowered shares of GAP from an "overweight" rating to an "equal weight" rating and lowered their target price for the stock from $24.00 to $19.00 in a research report on Friday, August 22nd. Jefferies Financial Group set a $22.00 target price on GAP in a report on Thursday, September 4th. Morgan Stanley lifted their price target on GAP from $27.00 to $28.00 and gave the stock an "overweight" rating in a research note on Tuesday. UBS Group cut their price target on GAP from $27.00 to $23.00 and set a "neutral" rating for the company in a research note on Friday, August 22nd. Finally, Wells Fargo & Company cut their price target on GAP from $24.00 to $22.00 and set an "equal weight" rating for the company in a research note on Friday, August 29th. Six analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $25.47.

GAP Stock Performance

Shares of GAP traded down $1.29 during mid-day trading on Friday, reaching $22.63. 8,975,895 shares of the company's stock were exchanged, compared to its average volume of 9,265,416. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.68 and a quick ratio of 0.96. The stock has a market capitalization of $8.40 billion, a PE ratio of 9.67, a price-to-earnings-growth ratio of 2.61 and a beta of 2.09. The business's fifty day simple moving average is $21.39 and its 200-day simple moving average is $21.76. GAP has a 52-week low of $16.99 and a 52-week high of $29.29.

GAP (NYSE:GAP - Get Free Report) last released its quarterly earnings data on Thursday, August 28th. The company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.55 by $0.02. GAP had a net margin of 5.86% and a return on equity of 27.04%. The company had revenue of $3.73 billion for the quarter, compared to analysts' expectations of $3.73 billion. During the same quarter last year, the company earned $0.54 earnings per share. The firm's revenue for the quarter was up .1% on a year-over-year basis. GAP has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS.

Hedge Funds Weigh In On GAP

Several hedge funds and other institutional investors have recently bought and sold shares of GAP. Hexagon Capital Partners LLC acquired a new position in GAP during the 1st quarter worth approximately $30,000. First Horizon Advisors Inc. acquired a new position in shares of GAP in the 1st quarter valued at approximately $75,000. Brooklyn Investment Group acquired a new position in shares of GAP in the 1st quarter valued at approximately $80,000. Deseret Mutual Benefit Administrators acquired a new position in shares of GAP in the 1st quarter valued at approximately $81,000. Finally, Covestor Ltd acquired a new position in shares of GAP in the 1st quarter valued at approximately $82,000. 58.81% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, Director William Sydney Fisher sold 243,064 shares of the business's stock in a transaction that occurred on Thursday, September 4th. The stock was sold at an average price of $23.82, for a total transaction of $5,789,784.48. Following the transaction, the director directly owned 3,453,453 shares of the company's stock, valued at approximately $82,261,250.46. The trade was a 6.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 31.00% of the company's stock.

GAP Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 29th. Investors of record on Wednesday, October 8th will be given a dividend of $0.165 per share. The ex-dividend date of this dividend is Wednesday, October 8th. This represents a $0.66 annualized dividend and a yield of 2.9%. GAP's payout ratio is 28.21%.

About GAP

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.