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 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.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on GAP shares. Argus raised GAP to a “strong-buy” rating in a report on Thursday, January 22nd. Bank of America upped their price objective on shares of GAP from $23.00 to $27.00 and gave the company a “neutral” rating in a research note on Friday, November 21st. Weiss Ratings reiterated a “buy (b-)” rating on shares of GAP in a report on Monday, December 29th. UBS Group upgraded shares of GAP from a “neutral” rating to a “buy” rating and upped their price objective for the company from $26.00 to $41.00 in a report on Wednesday, January 7th. Finally, BTIG Research increased their target price on GAP from $30.00 to $31.00 and gave the stock a “buy” rating in a report on Friday, November 21st. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $30.54.

GAP Stock Performance

GAP stock traded down $0.59 during midday trading on Thursday, reaching $27.15. 15,862,642 shares of the company’s stock traded hands, compared to its average volume of 7,370,527. The company has a 50-day moving average price of $27.31 and a two-hundred day moving average price of $24.89. GAP has a 52 week low of $16.99 and a 52 week high of $29.36. The firm 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 debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.72.

GAP (NYSE:GAP) last issued its quarterly earnings data on Thursday, March 5th. The company reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. The company had revenue of $4.24 billion during the quarter, compared to analyst estimates of $4.24 billion. GAP had a return on equity of 24.91% and a net margin of 5.57%.GAP has set its FY 2026 guidance at 2.200-2.350 EPS. As a group, equities analysts anticipate that GAP will post 2.02 EPS for the current year.

GAP Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 29th. Investors of record on Wednesday, April 8th will be issued a dividend of $0.175 per share. The ex-dividend date is Wednesday, April 8th. This represents a $0.70 dividend on an annualized basis and a yield of 2.6%. This is an increase from GAP’s previous quarterly dividend of $0.17. GAP’s dividend payout ratio (DPR) is currently 31.25%.

Insider Activity at GAP

In other GAP news, major shareholder John J. Fisher sold 3,971 shares of GAP stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $27.04, for a total transaction of $107,375.84. Following the sale, the insider directly owned 746,781 shares of the company’s stock, valued at approximately $20,192,958.24. The trade was a 0.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Julie Gruber sold 30,000 shares of the stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $28.00, for a total value of $840,000.00. Following the completion of the transaction, the insider directly owned 37,395 shares of the company’s stock, valued at $1,047,060. This represents a 44.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 133,971 shares of company stock worth $3,629,264 over the last quarter. 30.56% of the stock is owned by corporate insiders.

Institutional Trading of GAP

A number of institutional investors and hedge funds have recently bought and sold shares of GAP. Ameriprise Financial Inc. grew its stake in shares of GAP by 4.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company’s stock valued at $98,154,000 after purchasing an additional 180,991 shares during the period. Jump Financial LLC boosted its stake in shares of GAP by 2,197.8% during the 3rd quarter. Jump Financial LLC now owns 645,150 shares of the company’s stock worth $13,800,000 after acquiring an additional 617,073 shares during the last quarter. California State Teachers Retirement System grew its position in shares of GAP by 0.8% during the 2nd 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 during the period. Lazard Asset Management LLC grew its holdings in GAP by 146.4% during the second quarter. Lazard Asset Management LLC now owns 123,726 shares of the company’s stock valued at $2,697,000 after purchasing an additional 73,516 shares during the period. Finally, Campbell & CO Investment Adviser LLC purchased a new stake in GAP in the fourth quarter worth about $2,682,000. 58.81% of the stock is currently owned by institutional investors.

GAP Company Profile

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.