GAP (NYSE:GAP) Updates FY 2026 Earnings Guidance

GAP (NYSE:GAP) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 2.300-2.400 for the period, compared to the consensus earnings per share 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.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on GAP. BTIG Research reiterated a “buy” rating and set a $28.00 target price on shares of GAP in a research note on Friday. Wall Street Zen lowered shares of GAP from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Telsey Advisory Group raised their price objective on shares of GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a report on Monday, March 2nd. JPMorgan Chase & Co. boosted their price objective on shares of GAP from $33.00 to $35.00 and gave the company an “overweight” rating in a research report on Friday, March 20th. Finally, Citigroup boosted their price objective on shares of GAP from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday, March 6th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $29.21.

GAP Trading Up 3.7%

GAP stock opened at $24.95 on Friday. The firm has a 50 day moving average of $24.26 and a 200 day moving average of $25.69. The firm has a market capitalization of $9.11 billion, a price-to-earnings ratio of 11.60, a P/E/G ratio of 1.39 and a beta of 2.11. GAP has a 12-month low of $18.68 and a 12-month high of $29.36. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39.

GAP (NYSE:GAP) last released its earnings results on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $3.50 billion during the quarter, compared to analysts’ expectations of $3.52 billion. GAP had a return on equity of 22.98% and a net margin of 5.31%.The company’s revenue was up 1.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, research analysts predict that GAP will post 2.29 earnings per share for the current year.

GAP Announces Dividend

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

Insider Buying and Selling at GAP

In other GAP news, insider Julie Gruber sold 5,302 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $27.00, for a total transaction of $143,154.00. Following the completion of the sale, the insider directly owned 58,414 shares of the company’s stock, valued at $1,577,178. This trade represents a 8.32% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Kayen Chan sold 13,377 shares of the stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $26.18, for a total transaction of $350,209.86. Following the sale, the insider directly owned 21,967 shares of the company’s stock, valued at approximately $575,096.06. This trade represents a 37.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 923,098 shares of company stock worth $22,648,158. Insiders own 31.00% of the company’s stock.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Negative Sentiment: Gap cut its full-year sales forecast, saying slower growth at Old Navy and weaker discretionary spending are hurting demand. The company now expects revenue growth of 1% to 2%, down from 2% to 3%, which raised concerns about consumer softness and near-term sales momentum. Article Title
• Negative Sentiment: The company missed first-quarter revenue expectations and posted EPS of $0.38 versus the $0.39 estimate, reinforcing worries that results are not keeping pace with analyst forecasts. Article Title
• Negative Sentiment: Management said Old Navy’s spring and summer assortment did not resonate with shoppers, a key reason the company lowered its outlook and why the stock dropped sharply in after-hours and premarket trading. Article Title
• Neutral Sentiment: Gap still reported some positives, including 1% revenue growth, 2% comparable-sales growth, and a raised full-year EPS outlook, but those upside points were outweighed by the cautious sales guidance. Article Title

Institutional Investors Weigh In On GAP

A number of institutional investors have recently added to or reduced their stakes in GAP. EverSource Wealth Advisors LLC grew its holdings in GAP by 177.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock valued at $153,000 after buying an additional 4,483 shares in the last quarter. Atlas Capital Advisors Inc. purchased a new position in shares of GAP in the fourth quarter valued at $203,000. Amundi purchased a new stake in GAP during the first quarter valued at approximately $259,000. Brooklyn Investment Group purchased a new stake in GAP during the fourth quarter valued at approximately $312,000. Finally, Jump Financial LLC purchased a new stake in GAP during the second quarter valued at approximately $612,000. 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.