GAP (NYSE:GAP) Issues Earnings Results, Beats Expectations By $0.04 EPS

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

GAP Stock Performance

Shares of GAP stock traded down $0.32 on Thursday, reaching $20.84. 20,130,250 shares of the company were exchanged, compared to its average volume of 7,738,723. The firm has a market cap of $7.50 billion, a price-to-earnings ratio of 8.20, a P/E/G ratio of 1.19 and a beta of 2.05. GAP has a 1-year low of $18.11 and a 1-year high of $29.36. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. The company’s 50-day moving average is $20.02 and its two-hundred day moving average is $22.93.

GAP Announces Dividend

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

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the stock. Morgan Stanley restated an “equal weight” rating and issued a $21.00 price target on shares of GAP in a research note on Monday, July 6th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $27.00 price objective (down from $35.00) on shares of GAP in a research note on Friday, May 29th. Bank of America decreased their price objective on shares of GAP from $29.00 to $26.00 and set a “neutral” rating for the company in a report on Friday, May 29th. Jefferies Financial Group lowered shares of GAP from a “buy” rating to a “hold” rating and cut their target price for the company from $29.00 to $23.00 in a research note on Wednesday, August 12th. Finally, Evercore set a $20.00 price target on shares of GAP and gave the stock an “in-line” rating in a research report on Friday, May 29th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat.com, GAP currently has a consensus rating of “Moderate Buy” and an average target price of $26.29.

Institutional Trading of GAP

A number of large investors have recently modified their holdings of GAP. EverSource Wealth Advisors LLC lifted its position in 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. Atlas Capital Advisors Inc. acquired a new stake in shares of GAP in the fourth quarter valued at approximately $203,000. Brooklyn Investment Group bought a new stake in shares of GAP during the fourth quarter valued at approximately $312,000. Amundi acquired a new position in shares of GAP during the first quarter worth approximately $259,000. Finally, Jump Financial LLC acquired a new position in shares of GAP during the second quarter worth approximately $612,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

Trending Headlines about GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap reported quarterly adjusted EPS of $0.52, exceeding the $0.48 analyst consensus. Gross-margin strength and cost discipline helped the company surpass operating-profit expectations despite softer revenue. Gap Second Quarter Earnings Press Release
• Positive Sentiment: The company raised its fiscal 2026 EPS outlook to $2.35-$2.45, above the $2.33 consensus estimate, citing continued momentum at the Gap brand. It also returned $726 million to shareholders through repurchases and dividends year to date. Gap Raises Annual Profit Forecast
• Neutral Sentiment: Gap appointed Michael Francis, a retail executive with experience at Walmart and Target, as Old Navy’s president and CEO effective November 2. He will replace Haio Barbeito, who will become an adviser; the change could support a turnaround but adds near-term execution risk. Gap Announces New Old Navy CEO
• Negative Sentiment: Quarterly net sales fell 2% year over year to $3.65 billion, missing the $3.69 billion consensus, while comparable sales declined 1%. Management’s full-year revenue outlook of approximately $15.6 billion is below the $15.7 billion analyst estimate. Gap Second Quarter Fiscal 2026 Results
• Negative Sentiment: Old Navy reported sluggish performance and declining comparable sales, prompting the leadership shake-up. Third-quarter revenue guidance of about $4.0 billion is broadly in line with expectations, but the lack of an EPS forecast limits visibility into near-term profitability. Gap Cuts Sales Outlook on Old Navy Weakness

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.