Brokers Offer Predictions for GAP’s Q2 Earnings (NYSE:GAP)

The Gap, Inc. (NYSE:GAP) – Analysts at Zacks Research lifted their Q2 2027 earnings per share estimates for GAP in a research note issued on Thursday, June 11th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.51 for the quarter, up from their prior estimate of $0.50. The consensus estimate for GAP’s current full-year earnings is $2.34 per share. Zacks Research also issued estimates for GAP’s Q3 2027 earnings at $0.78 EPS, Q4 2027 earnings at $0.63 EPS, FY2027 earnings at $2.31 EPS, Q4 2028 earnings at $0.62 EPS, FY2028 earnings at $2.55 EPS, Q1 2029 earnings at $0.56 EPS and FY2029 earnings at $2.82 EPS.

A number of other research firms have also recently issued reports on GAP. BTIG Research reissued a “buy” rating and set a $28.00 price objective on shares of GAP in a research report on Friday, May 29th. JPMorgan Chase & Co. reissued a “neutral” rating and set a $27.00 price objective (down from $35.00) on shares of GAP in a research report on Friday, May 29th. Wall Street Zen cut GAP from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Bank of America reduced their price objective on GAP from $29.00 to $26.00 and set a “neutral” rating for the company in a research report on Friday, May 29th. Finally, Wells Fargo & Company reduced their price target on GAP from $30.00 to $26.00 and set an “overweight” rating for the company in a research report on Friday, May 29th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $28.71.

GAP Price Performance

GAP opened at $21.80 on Friday. The stock has a market cap of $7.85 billion, a price-to-earnings ratio of 8.58, a PEG ratio of 1.25 and a beta of 2.03. GAP has a 1 year low of $18.68 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 fifty day moving average price of $23.63 and a 200 day moving average price of $25.50.

GAP (NYSE:GAP) last released its quarterly earnings data on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). The firm had revenue of $3.50 billion for the quarter, compared to analyst estimates of $3.52 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. GAP’s revenue for the quarter was up 1.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.51 EPS. GAP has set its FY 2026 guidance at 2.300-2.400 EPS.

Hedge Funds Weigh In On GAP

Large investors have recently made changes to their positions in the business. Cullen Frost Bankers Inc. acquired a new position in shares of GAP during the 4th quarter worth about $26,000. Plato Investment Management Ltd acquired a new position in shares of GAP during the 4th quarter worth about $28,000. V Square Quantitative Management LLC acquired a new position in shares of GAP during the 4th quarter worth about $31,000. EverSource Wealth Advisors LLC lifted its position in shares of GAP by 177.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock worth $153,000 after purchasing an additional 4,483 shares during the last quarter. Finally, Atlas Capital Advisors Inc. acquired a new position in shares of GAP during the 4th quarter worth about $203,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

Insiders Place Their Bets

In related news, CFO Katrina O’connell sold 153,413 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $23.85, for a total value of $3,658,900.05. Following the transaction, the chief financial officer directly owned 11,503 shares of the company’s stock, valued at approximately $274,346.55. This trade represents a 93.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Mark Breitbard sold 119,155 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $23.80, for a total value of $2,835,889.00. Following the completion of the transaction, the chief executive officer directly owned 135,884 shares in the company, valued at $3,234,039.20. The trade was a 46.72% 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 worth $22,648,158 in the last three months. 31.00% of the stock is owned by insiders.

GAP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th will be paid a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Wednesday, July 8th. GAP’s dividend payout ratio (DPR) is presently 27.56%.

Key GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS estimate for The Gap, Inc. to $2.31 from $2.25, suggesting a modestly improved earnings outlook for that year.
• Positive Sentiment: Zacks Research also increased its Q2 2027 EPS estimate to $0.51 from $0.50 and its Q3 2027 estimate to $0.78 from $0.73, reflecting stronger near- to mid-term profit expectations.
• Positive Sentiment: Retail and brand-related coverage around Gap merchandise, including a Water.org collaboration and interest in Hailey Bieber’s Gap jeans, could support consumer awareness and sales momentum.
• Neutral Sentiment: Gap also received a momentum-stock mention from Zacks, which is more of a screening note than a direct fundamental catalyst.
• Negative Sentiment: Zacks Research lowered several longer-term EPS forecasts, including FY2028 to $2.55 from $2.58, FY2029 to $2.82 from $2.85, Q4 2028 to $0.62 from $0.65, Q4 2027 to $0.63 from $0.64, and Q1 2029 to $0.56 from $0.59, which may weigh on sentiment.
• Negative Sentiment: Investor concern also rose after two law firms announced investigations into possible securities-law violations at Gap, creating overhang from potential litigation risk.
• Negative Sentiment: The company remains below recent highs and recently missed its latest quarterly EPS and revenue estimates, so analysts’ mixed revisions may reinforce concerns about execution.

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.