GAP (NYSE:GAP) Announces Quarterly Earnings Results

GAP (NYSE:GAP) announced its earnings results on Thursday. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.04, FiscalAI reports. GAP had a net margin of 6.25% and a return on equity of 21.13%. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.69 billion. GAP updated its FY 2026 guidance to 2.350-2.450 EPS.

GAP Stock Down 1.5%

Shares of GAP stock traded down $0.32 on Thursday, reaching $20.84. 19,282,755 shares of the company were exchanged, compared to its average volume of 7,738,723. The stock’s 50 day moving average price is $20.02 and its 200-day moving average price is $22.93. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.81 and a quick ratio of 1.08. GAP has a 1-year low of $18.11 and a 1-year high of $29.36. The company has a market cap of $7.50 billion, a P/E ratio of 8.20, a price-to-earnings-growth ratio of 1.19 and a beta of 2.05.

GAP Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be paid a $0.175 dividend. This represents a $0.70 annualized dividend and a dividend yield of 3.4%. The ex-dividend date is Wednesday, October 7th. GAP’s dividend payout ratio (DPR) is presently 27.56%.

Institutional Investors Weigh In On GAP

Several institutional investors have recently modified their holdings of GAP. Public Employees Retirement System of Ohio grew its holdings in shares of GAP by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock worth $1,537,000 after purchasing an additional 447 shares during the last quarter. California State Teachers Retirement System lifted its holdings in shares of GAP by 0.8% in the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after purchasing an additional 1,703 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of GAP by 177.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock valued at $153,000 after purchasing an additional 4,483 shares during the last quarter. Russell Investments Group Ltd. boosted its position in shares of GAP by 16.8% in the 3rd quarter. Russell Investments Group Ltd. now owns 37,093 shares of the company’s stock valued at $793,000 after purchasing an additional 5,326 shares during the period. Finally, Atlas Capital Advisors Inc. acquired a new stake in shares of GAP in the 4th quarter valued at about $203,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

GAP has been the subject of several research analyst reports. TD Cowen dropped their price objective on GAP from $26.00 to $23.00 and set a “buy” rating for the company in a research note on Tuesday, August 18th. Evercore set a $20.00 target price on GAP and gave the stock an “in-line” rating in a research note on Friday, May 29th. The Goldman Sachs Group lowered their target price on GAP from $28.00 to $25.00 and set a “buy” rating for the company in a report on Thursday, August 20th. Morgan Stanley restated an “equal weight” rating and set a $21.00 target price on shares of GAP in a report on Monday, July 6th. Finally, Jefferies Financial Group downgraded GAP from a “buy” rating to a “hold” rating and dropped their target price for the company from $29.00 to $23.00 in a research report on Wednesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $26.29.

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.