GAP (NYSE:GAP) Issues FY 2026 Earnings Guidance

GAP (NYSE:GAP) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 2.200-2.350 for the period, compared to the consensus estimate of 2.150. The company issued revenue guidance of $15.7 billion-$15.9 billion, compared to the consensus revenue estimate of $15.4 billion. GAP also updated its Q1 2026 guidance to EPS.

Wall Street Analysts Forecast Growth

GAP has been the subject of several recent research reports. Citigroup increased their price target on GAP from $25.00 to $27.00 and gave the company a “neutral” rating in a report on Friday. Robert W. Baird set a $33.00 target price on GAP and gave the stock an “outperform” rating in a research report on Wednesday, December 17th. Wall Street Zen lowered GAP from a “buy” rating to a “hold” rating in a research note on Saturday. Evercore raised their target price on GAP from $25.00 to $28.00 and gave the company an “outperform” rating in a report on Friday, November 21st. Finally, Zacks Research lowered GAP from a “strong-buy” rating to a “hold” rating in a research report on Monday, February 2nd. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, GAP presently has a consensus rating of “Moderate Buy” and a consensus price target of $30.46.

GAP Stock Performance

NYSE:GAP opened at $23.28 on Friday. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.72 and a quick ratio of 0.97. The firm has a 50-day moving average of $27.27 and a two-hundred day moving average of $24.92. The stock has a market cap of $8.66 billion, a P/E ratio of 10.83, a PEG ratio of 2.80 and a beta of 2.29. GAP has a 1-year low of $16.99 and a 1-year high of $29.36.

GAP (NYSE:GAP) last announced its earnings results on Thursday, March 5th. The company reported $0.45 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.45. GAP had a return on equity of 23.54% and a net margin of 5.31%.The business had revenue of $4.24 billion for the quarter, compared to analyst estimates of $4.24 billion. During the same period in the previous year, the company earned $0.54 earnings per share. The company’s revenue for the quarter was up 2.1% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. On average, research analysts expect that GAP will post 2.02 earnings per share for the current fiscal year.

GAP Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 29th. Shareholders of record on Wednesday, April 8th will be issued a dividend of $0.175 per share. The ex-dividend date is Wednesday, April 8th. This represents a $0.70 annualized dividend and a yield of 3.0%. This is a boost from GAP’s previous quarterly dividend of $0.17. GAP’s dividend payout ratio (DPR) is presently 29.46%.

Insider Buying and Selling at GAP

In other GAP news, major shareholder John J. Fisher sold 3,971 shares of the company’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $27.04, for a total value of $107,375.84. Following the transaction, the insider directly owned 746,781 shares of the company’s stock, valued at $20,192,958.24. This represents a 0.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director William Sydney Fisher sold 88,860 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $26.82, for a total transaction of $2,383,225.20. Following the sale, the director directly owned 2,764,593 shares of the company’s stock, valued at $74,146,384.26. The trade was a 3.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 133,971 shares of company stock valued at $3,629,264 in the last three months. Corporate insiders own 30.56% of the company’s stock.

Key GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Company raised its FY‑2026 targets: EPS guidance of $2.20–$2.35 (above consensus) and revenue guide of $15.7–$15.9B, which suggests stronger full‑year growth potential. The board also authorized a $1 billion share repurchase program. PR Newswire: Q4 results & FY26 outlook
• Positive Sentiment: Core brands showed underlying momentum: Q4 revenue rose ~2% Y/Y with comp growth at Old Navy, Gap and Banana Republic, indicating brand-level operational progress despite margin pressure. Zacks: Q4 earnings summary
• Positive Sentiment: Several brokers still see upside: JPMorgan kept an Overweight call while trimming its target to $33 (still well above the current price); Telsey raised its target earlier. These analyst endorsements support a constructive medium‑term view. TickerReport / Benzinga: JPMorgan target note
• Neutral Sentiment: Citigroup nudged its target up to $27 but kept a Neutral rating — a modestly constructive but cautious stance that may limit immediate bullish momentum. Benzinga: Citigroup target update
• Neutral Sentiment: Value/analyst writeups highlight GAP as a value opportunity given current multiples (P/E ~10) and turnaround narrative; useful context but not an immediate catalyst. Zacks: GAP as value stock
• Negative Sentiment: Investors reacted to a small EPS miss (reported $0.45 vs. ~$0.46 street estimate) and headline‑level revenue slightly below some forecasts — the misses triggered a selloff in high intraday volume. Proactive Investors: Shares fall after earnings miss
• Negative Sentiment: Athleta remains a drag: same‑store sales fell ~10% in Q4, pressuring margins and prompting management to say rebuilding will take time — a near‑term earnings headwind. WSJ: Athleta slump
• Negative Sentiment: Operational disruptions: historic winter storms forced ~800 temporary store closures in Q4, which hurt short‑term sales and was cited by management as a factor in the quarterly miss. CNBC: Winter storms impact
• Negative Sentiment: Macro/tail risks flagged: management and some outlets cited tariff pressures and margin headwinds that could keep near‑term profit below some analyst estimates. U.S. News: Tariff and profit concerns

Institutional Investors Weigh In On GAP

Several hedge funds and other institutional investors have recently modified their holdings of GAP. Public Employees Retirement System of Ohio raised its stake in shares of GAP by 2.7% in the 4th quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company’s stock valued at $1,890,000 after purchasing an additional 1,945 shares in the last quarter. Russell Investments Group Ltd. grew its stake in GAP by 94.8% in the fourth quarter. Russell Investments Group Ltd. now owns 72,239 shares of the company’s stock worth $1,849,000 after purchasing an additional 35,146 shares in the last quarter. Captrust Financial Advisors increased its holdings in GAP by 34.4% in the fourth 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 last quarter. Atlas Capital Advisors Inc. acquired a new stake in GAP during the fourth quarter valued at approximately $203,000. Finally, Brooklyn Investment Group bought a new position in GAP during the 4th quarter worth approximately $312,000. 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.