GAP (NYSE:GAP) Issues FY 2026 Earnings Guidance

Posted by Brian Himes on May 28th, 2026

GAP (NYSE:GAP – Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 2.300-2.400 for the period, compared to the consensus EPS estimate of 2.330. The company issued revenue guidance of $15.5 billion-$15.7 billion, compared to the consensus revenue estimate of $15.7 billion. GAP also updated its Q2 2026 guidance to EPS.

GAP Stock Performance

GAP stock traded up $0.90 during midday trading on Thursday, reaching $24.95. 15,314,255 shares of the company’s stock were exchanged, compared to its average volume of 7,784,785. GAP has a 52 week low of $18.68 and a 52 week high of $29.36. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.08 and a current ratio of 1.75. The firm has a market cap of $9.11 billion, a price-to-earnings ratio of 11.60, a P/E/G ratio of 1.36 and a beta of 2.11. The stock’s 50-day simple moving average is $24.24 and its 200 day simple moving average is $25.68.

GAP (NYSE:GAP – Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a return on equity of 22.98% and a net margin of 5.31%.The business had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, analysts expect that GAP will post 2.29 earnings per share for the current fiscal year.

GAP Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th will be issued a dividend of $0.175 per share. The ex-dividend date is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a yield of 2.8%. GAP’s dividend payout ratio (DPR) is presently 32.56%.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on GAP shares. Wall Street Zen cut GAP from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Zacks Research cut GAP from a “strong-buy” rating to a “hold” rating in a report on Monday, February 2nd. Citigroup boosted their price objective on GAP from $25.00 to $27.00 and gave the stock a “neutral” rating in a report on Friday, March 6th. Telsey Advisory Group boosted their price objective on GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a report on Monday, March 2nd. Finally, The Goldman Sachs Group boosted their price objective on GAP from $29.00 to $32.00 and gave the stock a “buy” rating in a report on Friday, January 30th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, GAP presently has an average rating of “Moderate Buy” and a consensus target price of $30.07.

View Our Latest Stock Report on GAP

Insider Activity at GAP

In other news, insider Julie Gruber sold 5,302 shares of the business’s stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $27.00, for a total transaction of $143,154.00. Following the completion of the sale, the insider owned 58,414 shares in the company, valued at $1,577,178. The trade was a 8.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amanda J. Thompson sold 25,000 shares of the business’s stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $25.14, for a total value of $628,500.00. Following the sale, the insider owned 86,228 shares of the company’s stock, valued at approximately $2,167,771.92. This represents a 22.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 923,098 shares of company stock valued at $22,648,158. Insiders own 31.00% of the company’s stock.

More GAP News

Here are the key news stories impacting GAP this week:

Positive Sentiment: Gap said first-quarter net sales rose 1% and comparable sales increased 2%, marking its ninth straight quarter of positive comps, while gross margin of 40.5% exceeded its outlook. The company also raised its full-year EPS guidance, signaling management still expects improved profitability. Article Title
Neutral Sentiment: Gap reported Q1 EPS of $0.38, slightly below the $0.39 consensus, and revenue of $3.50 billion versus expectations for $3.52 billion. The miss was modest, but it added to investor caution heading into the call and results release. Article Title
Neutral Sentiment: The company’s updated FY 2026 guidance of $2.30-$2.40 EPS and $15.5 billion-$15.7 billion in revenue was broadly in line to slightly above analyst expectations, suggesting only limited upside surprise from the new outlook. Article Title
Negative Sentiment: Management cut sales guidance after saying Old Navy’s spring and summer assortment did not resonate with shoppers, which led to weaker-than-expected performance and a lower full-year revenue outlook. That slowdown is the main reason the stock is under pressure despite the earnings beat. Article Title

Institutional Investors Weigh In On GAP

Several institutional investors have recently made changes to their positions in GAP. Ameriprise Financial Inc. boosted its stake in shares of GAP by 42.7% in the second 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 period. Jump Financial LLC boosted its stake in shares of GAP by 2,197.8% in the third quarter. Jump Financial LLC now owns 645,150 shares of the company’s stock valued at $13,800,000 after buying an additional 617,073 shares during the period. Campbell & CO Investment Adviser LLC bought a new stake in shares of GAP in the fourth quarter valued at approximately $2,682,000. Fiduciary Trust Co bought a new stake in shares of GAP in the third quarter valued at approximately $1,716,000. Finally, Lazard Asset Management LLC boosted its stake in shares of GAP by 146.4% in the second quarter. Lazard Asset Management LLC now owns 123,726 shares of the company’s stock valued at $2,697,000 after buying an additional 73,516 shares during the period. 58.81% of the stock is currently owned by institutional investors.

GAP Company Profile

(Get Free Report)

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.