GAP (NYSE:GAP) Releases FY 2026 Earnings Guidance

GAP (NYSE:GAP) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share 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.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on GAP. The Goldman Sachs Group cut their price target on shares of GAP from $28.00 to $25.00 and set a “buy” rating on the stock in a report on Thursday, August 20th. Evercore set a $20.00 price objective on GAP and gave the company an “in-line” rating in a research note on Friday, May 29th. BTIG Research set a $26.00 target price on GAP in a research report on Thursday, July 30th. Bank of America cut their price objective on shares of GAP from $29.00 to $26.00 and set a “neutral” rating for the company in a research report on Friday, May 29th. Finally, Weiss Ratings cut GAP from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $26.29.

GAP Trading Down 1.5%

NYSE GAP opened at $20.84 on Friday. The firm has a market cap of $7.50 billion, a PE ratio of 8.20, a price-to-earnings-growth ratio of 1.25 and a beta of 2.05. GAP has a 1-year low of $18.11 and a 1-year high of $29.36. The company has a current ratio of 1.81, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41. The stock has a 50-day moving average of $20.01 and a 200-day moving average of $22.87.

GAP (NYSE:GAP) last posted its quarterly earnings results on Thursday, August 27th. The company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.69 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. The firm’s revenue was down 2.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, sell-side analysts forecast that GAP will post 2.33 EPS for the current year.

GAP Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders 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 annualized dividend and a dividend yield of 3.4%. GAP’s payout ratio is 27.56%.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap reported adjusted earnings of $0.52 per share, exceeding the $0.48 analyst consensus. Gross margin expanded 20 basis points to 41.4%, helping the company outperform operating-profit expectations despite softer sales. Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
• Positive Sentiment: Management raised fiscal 2026 EPS guidance to $2.35-$2.45, above the roughly $2.33 consensus, reflecting confidence in continued profit improvement and cost discipline. The company has also returned $726 million to shareholders through buybacks and dividends year to date. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: The Gap namesake brand and Banana Republic performed better than expected, providing evidence that the company’s brand turnaround is gaining traction and offsetting weakness elsewhere. Gap rallies after Banana Republic and its namesake brand outperform expectations
• Neutral Sentiment: Michael Francis, a former retail executive with experience at Walmart and Target, will become Old Navy’s president and CEO on November 2. Investors viewed the leadership change as a potential turnaround catalyst, although execution will take time. Gap announces leadership transition at Old Navy
• Negative Sentiment: Quarterly net sales fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Old Navy was the main weakness, prompting the leadership overhaul and limiting the outlook for revenue growth. Gap Inc. Reports Second Quarter Fiscal 2026 Results

Hedge Funds Weigh In On GAP

Institutional investors have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC lifted its position in GAP by 177.0% during the 2nd 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 period. Atlas Capital Advisors Inc. purchased a new stake in shares of GAP during the 4th quarter valued at about $203,000. Brooklyn Investment Group bought a new stake in GAP in the 4th quarter worth approximately $312,000. Amundi bought a new stake in shares of GAP in the first quarter worth $259,000. Finally, Jump Financial LLC purchased a new stake in shares of GAP during the 2nd quarter valued at about $612,000. Institutional investors 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.