GAP (NYSE:GAP) Updates FY 2026 Earnings Guidance

GAP (NYSE:GAP) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 2.350-2.450 for the period, compared to the consensus EPS estimate of 2.330. The company issued revenue guidance of $15.6 billion-$15.6 billion, compared to the consensus revenue estimate of $15.7 billion. GAP also updated its Q3 2026 guidance to EPS.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Barclays raised their target price on GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a research report on Friday. BTIG Research raised their price target on shares of GAP from $26.00 to $27.00 and gave the stock a “buy” rating in a research note on Friday. TD Cowen upped their price objective on GAP from $23.00 to $27.00 and gave the company a “buy” rating in a research note on Friday. Bank of America raised their target price on GAP from $26.00 to $27.00 and gave the stock a “neutral” rating in a research report on Friday. Finally, The Goldman Sachs Group cut their price target on GAP from $28.00 to $25.00 and set a “buy” rating for the company in a research note on Thursday, August 20th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $27.21.

GAP Stock Up 12.9%

Shares of NYSE:GAP opened at $23.48 on Friday. The firm has a fifty day moving average of $20.06 and a 200 day moving average of $22.87. GAP has a 52-week low of $18.11 and a 52-week 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 firm has a market capitalization of $8.45 billion, a PE ratio of 7.01, a price-to-earnings-growth ratio of 1.23 and a beta of 2.05.

GAP (NYSE:GAP) last posted its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. The firm had revenue of $3.65 billion during the quarter, compared to analysts’ expectations of $3.69 billion. GAP had a return on equity of 20.05% and a net margin of 8.14%.The company’s revenue for the quarter was down 2.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, research analysts anticipate that GAP will post 2.33 EPS for the current fiscal year.

GAP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, October 7th will be paid a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 annualized dividend and a yield of 3.0%. GAP’s payout ratio is currently 27.56%.

Trending Headlines about GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Quarterly earnings beat expectations: Adjusted EPS was $0.52, exceeding the $0.48 consensus estimate. Gross margin expanded 20 basis points to 41.4%, helping Gap outperform operating-profit expectations despite weaker sales. Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
• Positive Sentiment: Profit outlook raised: The company now expects fiscal 2026 EPS of $2.35 to $2.45, above the roughly $2.33 analyst consensus. Management cited continued momentum at the Gap brand, margin discipline and strength at Banana Republic. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: Old Navy leadership reset: Michael Francis, a retail veteran with experience at Walmart and Target, will become Old Navy’s president and CEO on November 2, replacing Haio Barbeito. Investors appear hopeful that Francis can improve the company’s largest brand. Gap shares jump after Old Navy brings in new CEO to revive brand
• Positive Sentiment: Analyst support increased: TD Cowen and BTIG raised their price targets to $27 and assigned “buy” ratings. Bank of America also raised its target to $27, while Morgan Stanley lifted its target to $23 but retained an “equal weight” rating.
• Neutral Sentiment: Sales remained soft: Second-quarter revenue fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Full-year revenue guidance of about $15.6 billion is slightly below analyst expectations. Gap Inc. Reports Second Quarter Fiscal 2026 Results
• Negative Sentiment: Brand performance was uneven: Old Navy reported sluggish comparable sales, and Athleta continued to face pressure. The need for a leadership change underscores execution risks even as Gap and Banana Republic show stronger momentum.

Hedge Funds Weigh In On GAP

A number of large investors have recently bought and sold shares of the stock. Amundi bought a new stake in GAP in the first quarter valued at approximately $259,000. EverSource Wealth Advisors LLC grew its holdings in shares of GAP by 177.0% in the second 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. Jump Financial LLC purchased a new position in shares of GAP in the second quarter worth $612,000. California State Teachers Retirement System increased its stake in shares of GAP by 0.8% in the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock worth $4,940,000 after buying an additional 1,703 shares during the period. Finally, Ameriprise Financial Inc. raised its holdings in GAP by 42.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock valued at $96,134,000 after buying an additional 1,318,322 shares during the last quarter. 58.81% of the stock is owned by hedge funds and other institutional investors.

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.