Zacks Research Has Optimistic Outlook of GAP FY2027 Earnings

The Gap, Inc. (NYSE:GAP) – Investment analysts at Zacks Research lifted their FY2027 earnings per share (EPS) estimates for shares of GAP in a research report issued to clients and investors on Thursday, September 10th. Zacks Research analyst Team now expects that the company will post earnings per share of $2.41 for the year, up from their previous estimate of $2.31. The consensus estimate for GAP’s current full-year earnings is $2.41 per share. Zacks Research also issued estimates for GAP’s Q4 2027 earnings at $0.73 EPS, Q2 2028 earnings at $0.61 EPS, Q3 2028 earnings at $0.87 EPS, Q4 2028 earnings at $0.66 EPS, FY2028 earnings at $2.62 EPS, Q1 2029 earnings at $0.53 EPS, Q2 2029 earnings at $0.68 EPS and FY2029 earnings at $2.81 EPS.

Several other research analysts also recently commented on GAP. TD Cowen boosted their target price on GAP from $23.00 to $27.00 and gave the stock a “buy” rating in a research note on Friday, August 28th. BTIG Research lifted their price target on shares of GAP from $26.00 to $27.00 and gave the company a “buy” rating in a report on Friday, August 28th. Bank of America upped their price objective on shares of GAP from $26.00 to $27.00 and gave the stock a “neutral” rating in a research report on Friday, August 28th. UBS Group increased their price objective on shares of GAP from $40.00 to $42.00 and gave the company a “buy” rating in a research note on Friday, August 28th. Finally, The Goldman Sachs Group raised their target price on shares of GAP from $25.00 to $27.00 and gave the company a “buy” rating in a research report on Monday, August 31st. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $27.07.

GAP Stock Performance

NYSE:GAP opened at $20.93 on Friday. GAP has a twelve month low of $18.11 and a twelve month high of $29.36. The company has a quick ratio of 1.11, a current ratio of 1.82 and a debt-to-equity ratio of 0.38. The stock’s 50-day simple moving average is $20.47 and its 200 day simple moving average is $22.47. The firm has a market capitalization of $7.35 billion, a PE ratio of 6.25, a price-to-earnings-growth ratio of 0.91 and a beta of 2.08.

GAP (NYSE:GAP) last posted its quarterly earnings results on Thursday, August 27th. The company reported $0.52 EPS for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. GAP had a return on equity of 19.72% and a net margin of 8.14%.The company had revenue of $3.65 billion during the quarter, compared to analysts’ expectations of $3.69 billion. During the same quarter in the previous year, the firm earned $0.57 EPS. GAP’s revenue was down 2.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.350-2.450 EPS.

GAP Dividend Announcement

The company also recently declared 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. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP’s dividend payout ratio (DPR) is presently 20.90%.

Institutional Trading of GAP

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Sequoia Financial Advisors LLC raised its holdings in GAP by 26.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 172,326 shares of the company’s stock valued at $3,219,000 after buying an additional 35,747 shares during the last quarter. Tidal Investments LLC boosted its position in GAP by 60.6% during the 2nd quarter. Tidal Investments LLC now owns 64,329 shares of the company’s stock worth $1,202,000 after buying an additional 24,265 shares during the period. Engineers Gate Manager LP bought a new stake in GAP during the 2nd quarter worth approximately $4,216,000. Empirical Finance LLC grew its holdings in GAP by 6.7% during the 2nd quarter. Empirical Finance LLC now owns 44,937 shares of the company’s stock worth $839,000 after acquiring an additional 2,839 shares during the last quarter. Finally, Nykredit A S acquired a new position in GAP in the 2nd quarter valued at approximately $129,000. 58.81% of the stock is currently owned by institutional investors.

GAP News Summary

Here are the key news stories impacting GAP this week:

• Positive Sentiment: BMO Capital Markets upgraded GAP to “hold,” a less bearish stance that may reduce selling pressure and indicates the firm no longer expects meaningful underperformance. Zacks analyst action
• Positive Sentiment: Zacks Research raised its FY2027 EPS forecast to $2.41 from $2.31 and its FY2028 forecast to $2.62 from $2.55. It also increased Q4 2027 EPS to $0.73 from $0.63, Q3 2028 EPS to $0.87 from $0.83, and Q4 2028 EPS to $0.66 from $0.62. These revisions suggest improved longer-term earnings expectations.
• Positive Sentiment: GAP has hired a Paramount executive to help expand its brands beyond traditional apparel, signaling a strategy to create new growth channels and broaden its consumer reach. Gap taps a new executive to find its next act beyond fashion
• Neutral Sentiment: The current full-year EPS consensus remains $2.41, in line with the company’s FY2026 guidance range midpoint and unchanged by the latest estimate activity. This provides a stable baseline but no new near-term catalyst.
• Negative Sentiment: Zacks reduced estimates for Q1 2029 EPS to $0.53 from $0.56, Q2 2029 EPS to $0.68 from $0.71, Q2 2028 EPS to $0.61 from $0.62, and FY2029 EPS to $2.81 from $2.82. The cuts indicate some longer-term uncertainty despite the upgrades elsewhere.
• Negative Sentiment: Broader specialty-retail sentiment remains cautious: Victoria’s Secret raised guidance after beating earnings estimates, but its shares weakened as comparable-sales growth slowed and valuation concerns persisted. That backdrop may weigh on apparel-retail stocks, including GAP. Victoria’s Secret’s Comeback Is Real—The Stock’s Problem Is Different

GAP Company Profile

Gap Inc is an American specialty apparel retailer founded in 1969 by Donald and Doris Fisher in San Francisco, California. The company operates a portfolio of consumer brands focused on clothing, accessories and personal-care products for women, men and children.

Its principal brands include Old Navy, Gap, Banana Republic and Athleta. Products are sold through company-operated stores, franchise locations and digital channels, with offerings spanning casual apparel, denim, activewear, accessories and lifestyle products.

Gap Inc serves customers in North America and selected international markets through its retail and e-commerce operations.