GAP (NYSE:GAP) Updates FY 2026 Earnings Guidance

GAP (NYSE:GAP) issued an update on its FY 2026 earnings guidance on Thursday. The company provided 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.

GAP Trading Down 1.5%

Shares of GAP traded down $0.32 during trading hours on Thursday, reaching $20.84. The stock had a trading volume of 19,282,755 shares, compared to its average volume of 7,738,723. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. GAP has a 52 week low of $18.11 and a 52 week high of $29.36. The firm has a 50-day moving average of $20.02 and a 200 day moving average of $22.93. The company has a market cap of $7.50 billion, a P/E ratio of 8.20, a P/E/G ratio of 1.19 and a beta of 2.05.

GAP (NYSE:GAP) last issued its quarterly earnings results on Thursday, August 27th. The company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. The company had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.69 billion. GAP had a return on equity of 21.13% and a net margin of 6.25%.GAP has set its FY 2026 guidance at 2.350-2.450 EPS. On average, sell-side analysts expect that GAP will post 2.33 earnings per share for the current fiscal year.

GAP Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on GAP shares. Bank of America reduced their target price on GAP from $29.00 to $26.00 and set a “neutral” rating on the stock in a report on Friday, May 29th. The Goldman Sachs Group cut their target price on GAP from $28.00 to $25.00 and set a “buy” rating on the stock in a research report on Thursday, August 20th. Weiss Ratings downgraded shares of GAP from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. Morgan Stanley restated an “equal weight” rating and issued a $21.00 price objective on shares of GAP in a research note on Monday, July 6th. Finally, Barclays reiterated an “equal weight” rating and set a $20.00 price target (down from $26.00) on shares of GAP in a research note on Tuesday, August 11th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $26.29.

Institutional Investors Weigh In On GAP

A number of hedge funds have recently bought and sold shares of GAP. Ameriprise Financial Inc. grew its stake in GAP by 4.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company’s stock worth $98,154,000 after buying an additional 180,991 shares during the last quarter. Jump Financial LLC raised its holdings in shares of GAP by 2,197.8% during the third quarter. Jump Financial LLC now owns 645,150 shares of the company’s stock valued at $13,800,000 after acquiring an additional 617,073 shares during the last quarter. California State Teachers Retirement System lifted its position 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 valued at $4,940,000 after acquiring an additional 1,703 shares in the last quarter. Lazard Asset Management LLC lifted its position 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 acquiring an additional 73,516 shares in the last quarter. Finally, Campbell & CO Investment Adviser LLC acquired a new stake in shares of GAP in the fourth quarter worth approximately $2,682,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

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.