GAP (NYSE:GAP) Updates FY 2026 Earnings Guidance

GAP (NYSE:GAP) updated its FY 2026 earnings guidance on Thursday. 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.

Analysts Set New Price Targets

A number of research firms have recently issued reports on GAP. Evercore set a $20.00 price objective on shares of GAP and gave the company an “in-line” rating in a research note on Friday. Jefferies Financial Group dropped their price objective on shares of GAP from $32.00 to $29.00 and set a “buy” rating on the stock in a research note on Friday. The Goldman Sachs Group dropped their price objective on shares of GAP from $32.00 to $28.00 and set a “buy” rating on the stock in a research note on Friday. Wells Fargo & Company dropped their price objective on shares of GAP from $30.00 to $26.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Barclays dropped their price objective on shares of GAP from $33.00 to $26.00 and set an “overweight” rating on the stock in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, GAP has a consensus rating of “Moderate Buy” and a consensus price target of $28.71.

GAP Price Performance

Shares of GAP opened at $21.14 on Friday. The company has a market cap of $7.72 billion, a price-to-earnings ratio of 8.32, a price-to-earnings-growth ratio of 1.45 and a beta of 2.11. GAP has a twelve month low of $18.68 and a twelve month high of $29.36. 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 50 day moving average of $24.20 and a two-hundred day moving average of $25.66.

GAP (NYSE:GAP) last announced its earnings results on Thursday, May 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $3.50 billion during the quarter, compared to analyst estimates of $3.52 billion. GAP had a net margin of 6.25% and a return on equity of 21.17%. GAP’s revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the business earned $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, analysts predict that GAP will post 2.29 earnings per share for the current fiscal year.

GAP Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Shareholders of record on Wednesday, July 8th will be paid a $0.175 dividend. This represents a $0.70 annualized dividend and a yield of 3.3%. The ex-dividend date is Wednesday, July 8th. GAP’s dividend payout ratio (DPR) is 27.56%.

Insider Buying and Selling

In other GAP news, insider Sarah Gilligan sold 69,912 shares of the firm’s stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $25.00, for a total value of $1,747,800.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Amanda J. Thompson sold 25,000 shares of the firm’s stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $25.14, for a total transaction of $628,500.00. Following the completion of the sale, the insider owned 86,228 shares of the company’s stock, valued at approximately $2,167,771.92. This trade represents a 22.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 923,098 shares of company stock valued at $22,648,158 over the last quarter. Insiders own 31.00% of the company’s stock.

More GAP News

Here are the key news stories impacting GAP this week:

• Negative Sentiment: The Gap reported Q1 EPS of $0.38, missing estimates, and revenue of $3.50 billion, also slightly below expectations. The market is reacting to the earnings miss and lower revenue trend. Article Title
• Negative Sentiment: Management lowered fiscal 2026 revenue guidance to 1% to 2% growth from 2% to 3%, citing slower Old Navy growth and weaker-than-expected spring/summer demand. Article Title
• Negative Sentiment: Several headlines highlighted that shares fell sharply after the company’s cautious Q2 outlook and sales guidance reset, with analysts and media focusing on the weak consumer backdrop and pressure on nonessential spending. Article Title
• Neutral Sentiment: Gap still posted 2% comparable sales growth for a ninth straight quarter, and the flagship Gap brand remained relatively strong, which partially offsets the weaker outlook. Article Title
• Neutral Sentiment: Analysts broadly kept positive or neutral ratings but lowered price targets, signaling that Wall Street sees upside from current levels, while acknowledging slower near-term growth. Article Title
• Negative Sentiment: A shareholder investigation notice added another overhang, reflecting investor concern that the quarter’s results may have involved disclosure or securities-law issues. Article Title

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in GAP. EverSource Wealth Advisors LLC raised its holdings 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 worth $153,000 after buying an additional 4,483 shares during the last quarter. Atlas Capital Advisors Inc. purchased a new position in shares of GAP in the fourth quarter worth $203,000. Amundi purchased a new position in shares of GAP in the first quarter worth $259,000. Brooklyn Investment Group purchased a new position in shares of GAP in the fourth quarter worth $312,000. Finally, Jump Financial LLC purchased a new position in shares of GAP in the second quarter worth $612,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

GAP Company Profile

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.