GAP (NYSE:GAP) Updates FY 2026 Earnings Guidance

by · The Markets Daily

GAP (NYSE:GAP – Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 2.200-2.350 for the period, compared to the consensus earnings per share estimate of 2.150. The company issued revenue guidance of $15.7 billion-$15.9 billion, compared to the consensus revenue estimate of $15.4 billion. GAP also updated its Q1 2026 guidance to EPS.

Analyst Ratings Changes

A number of equities analysts recently weighed in on GAP shares. Robert W. Baird set a $33.00 price target on GAP and gave the stock an “outperform” rating in a research note on Wednesday, December 17th. Jefferies Financial Group upgraded shares of GAP from a “hold” rating to a “buy” rating and boosted their price target for the company from $22.00 to $30.00 in a report on Friday, November 14th. The Goldman Sachs Group raised their price objective on shares of GAP from $29.00 to $32.00 and gave the stock a “buy” rating in a research note on Friday, January 30th. Telsey Advisory Group lifted their price objective on shares of GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research report on Monday. Finally, BTIG Research increased their target price on GAP from $30.00 to $31.00 and gave the company a “buy” rating in a report on Friday, November 21st. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $30.54.

Read Our Latest Analysis on GAP

GAP Stock Down 2.1%

GAP stock traded down $0.59 during trading hours on Thursday, hitting $27.15. The company’s stock had a trading volume of 15,935,977 shares, compared to its average volume of 7,393,852. The stock has a 50 day moving average price of $27.31 and a two-hundred day moving average price of $24.89. GAP has a 12 month low of $16.99 and a 12 month high of $29.36. The company has a market capitalization of $10.10 billion, a PE ratio of 12.12, a price-to-earnings-growth ratio of 2.80 and a beta of 2.29. The company has a quick ratio of 0.97, a current ratio of 1.72 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP – Get Free Report) last released its quarterly earnings results on Thursday, March 5th. The company reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. GAP had a return on equity of 24.91% and a net margin of 5.57%.The company had revenue of $4.24 billion during the quarter, compared to the consensus estimate of $4.24 billion. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. On average, equities research analysts expect that GAP will post 2.02 earnings per share for the current year.

GAP Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 29th. Stockholders of record on Wednesday, April 8th will be paid a $0.175 dividend. The ex-dividend date is Wednesday, April 8th. This is a positive change from GAP’s previous quarterly dividend of $0.17. This represents a $0.70 annualized dividend and a dividend yield of 2.6%. GAP’s dividend payout ratio is 31.25%.

Insider Buying and Selling at GAP

In other news, insider Julie Gruber sold 30,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $28.00, for a total transaction of $840,000.00. Following the sale, the insider directly owned 37,395 shares in the company, valued at approximately $1,047,060. The trade was a 44.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director William Sydney Fisher sold 11,140 shares of the company’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $26.81, for a total value of $298,663.40. Following the completion of the transaction, the director owned 2,753,453 shares of the company’s stock, valued at $73,820,074.93. The trade was a 0.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 133,971 shares of company stock valued at $3,629,264 in the last ninety days. Company insiders own 30.56% of the company’s stock.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

  • Positive Sentiment: Company raised FY‑2026 guidance to $2.20–$2.35 EPS (vs. consensus ~2.15) and issued revenue guidance of $15.7–$15.9B (above consensus). Gap Inc. FY2026 Outlook
  • Positive Sentiment: Board authorized a new $1 billion share‑repurchase program; fiscal 2025 delivered modest sales growth, operating income of $1.1B and $1.3B operating cash flow — supports capital return and margin resilience. Gap Inc. Q4 & FY2025 Results
  • Positive Sentiment: Analyst support: Telsey Advisory raised its price target to $34 and reiterated an Outperform rating, giving bullish third‑party validation of the turnaround thesis. Telsey Raises GAP Target
  • Neutral Sentiment: Reported Q4 results essentially met expectations: $0.45 EPS (consensus $0.45) and $4.24B revenue (consensus $4.24B); solid ROE and net margin metrics, but no upside surprise to drive a strong rally. Q4 Press Release
  • Negative Sentiment: Athleta weakness: same‑store sales fell ~10% and management says rebuilding the brand is a priority, a drag on growth expectations. WSJ: Gap Profit Falls
  • Negative Sentiment: Operational disruption: historic winter storms forced roughly 800 temporary store closures, which management says weighed on results and near‑term comps. CNBC: Winter Storms Hit Gap
  • Negative Sentiment: Light Q1 guide: company issued Q1 revenue guidance of $3.5–$3.6B versus street ~$4.2B and left Q1 EPS guidance unspecified — raises near‑term growth and visibility concerns. Q1 Guidance Details

Institutional Investors Weigh In On GAP

Several large investors have recently made changes to their positions in GAP. EverSource Wealth Advisors LLC lifted 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 worth $153,000 after buying an additional 4,483 shares in the last quarter. Atlas Capital Advisors Inc. bought a new stake in shares of GAP during the fourth quarter worth $203,000. Amundi acquired a new position in shares of GAP during the first quarter valued at $259,000. Brooklyn Investment Group acquired a new position in shares of GAP during the fourth quarter valued at $312,000. Finally, Jump Financial LLC bought a new position in GAP in the second quarter valued at about $612,000. Institutional investors own 58.81% of the company’s stock.

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.

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