GAP (NYSE:GAP) Posts Earnings Results, Hits Estimates

GAP (NYSE:GAP) released its quarterly earnings results on Thursday. The company reported $0.45 earnings per share for the quarter, meeting the consensus estimate of $0.45, FiscalAI reports. The company had revenue of $4.24 billion for 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%.The firm’s revenue was up 2.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.54 earnings per share. GAP updated its FY 2026 guidance to 2.200-2.350 EPS.

Here are the key takeaways from GAP’s conference call:

• Gap Inc. reported a strong quarter and year with Q4 comps +3%, full-year net sales +2%, one of its highest gross margins in 25 years, $1.1 billion operating income, and a cash balance of $3.0 billion.
• The board increased the quarterly dividend (~6%) and authorized a new $1 billion share repurchase program, building on $247M of dividends and $155M of buybacks in 2025.
• Core-brand momentum continues: Old Navy, Gap, and Banana Republic delivered consecutive periods of positive comps (Old Navy and Gap showing category share gains), and the company is seeding growth accelerators—beauty, accessories, a reworked loyalty program (Encore), Fashiontainment and AI/technology investments—to expand revenue and engagement over time.
• Athleta remains a clear underperformer with Q4 sales down ~11% (comps down ~10%) and the company expects mid- to high-single-digit sales declines in the first half of 2026 while it rebuilds the brand.
• Tariffs materially pressured margins (about a 200 bp headwind in Q4 and ~120 bp for the year); management expects a Q1 gross margin headwind of ~150–200 bps with improvement later in 2026 as sourcing strategies annualize, creating near-term margin cadence risk.

GAP Price Performance

Shares of GAP opened at $27.15 on Friday. GAP has a twelve month low of $16.99 and a twelve month high of $29.36. The company has a market capitalization of $10.10 billion, a P/E ratio of 12.12, a price-to-earnings-growth ratio of 2.85 and a beta of 2.29. The firm has a 50 day moving average of $27.33 and a 200 day moving average of $24.90. 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 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 given a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a dividend yield of 2.6%. This is an increase from GAP’s previous quarterly dividend of $0.17. The ex-dividend date of this dividend is Wednesday, April 8th. GAP’s payout ratio is 29.46%.

More GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Company set FY2026 EPS guidance of $2.20–$2.35 and revenue guidance of $15.7–$15.9B, both above consensus, signaling better full-year profitability and top-line expectations; also announced a $1 billion share repurchase authorization. Gap Inc. Reports Fourth Quarter and Fiscal 2025 Results; Provides Fiscal 2026 Outlook
• Positive Sentiment: Management is pursuing new growth initiatives — expanding into beauty, accessories and “Fashiontainment” and targeting 2–3% sales growth for 2026 — initiatives investors may view as incremental long-term growth drivers. Gap outlines 2–3% sales growth for 2026 while expanding into beauty, accessories, and Fashiontainment
• Positive Sentiment: Some analysts are upbeat: Telsey Advisory raised its price target, reflecting confidence in Gap’s brand-revitalization plans. GAP Gets Higher Target From Telsey Advisory on Brand Revitalization Efforts
• Neutral Sentiment: Broader market weakness and geopolitical concerns pressured futures and retail sentiment today; some downward pressure on GAP may reflect macro moves rather than company fundamentals. Stock Market Today: Dow Jones, S&P 500 Futures Tumble Ahead Of February Employment Data—Marvell Technology, Gap, Oracle In Focus
• Negative Sentiment: Athleta remains a material drag — same-store sales fell ~10% in Q4 — and management said rebuilding will take time; historic winter storms forced ~800 temporary store closures, weighing on Q4 results and near-term momentum. Historic winter storms weigh on Gap, Old Navy performance after 800 temporary store closures
• Negative Sentiment: First-quarter revenue guidance (company issued a below-consensus near-term revenue outlook) and commentary on tariffs pressured expectations for FY profit; headlines flagged that annual adjusted profit may come in below some estimates. Gap Forecasts Annual Adjusted Profit Below Estimates as Tariffs Weigh
• Negative Sentiment: While Q4 revenue (+2.1% YoY) and EPS ($0.45) met Street estimates, EPS declined year-over-year and investors focused on the mix of sluggish brand results and near-term headwinds, prompting selling pressure. Gap Profit Falls as Athleta Weighs on Results Again

Insider Buying and Selling at GAP

In other news, Director William Sydney Fisher sold 11,140 shares of the company’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $26.81, for a total transaction of $298,663.40. Following the transaction, the director directly owned 2,753,453 shares of the company’s stock, valued at $73,820,074.93. This represents a 0.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, major shareholder John J. Fisher sold 3,971 shares of the stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $27.04, for a total value of $107,375.84. Following the sale, the insider directly owned 746,781 shares in the company, valued at $20,192,958.24. This trade represents a 0.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 133,971 shares of company stock worth $3,629,264. Insiders own 30.56% of the company’s stock.

Hedge Funds Weigh In On GAP

A number of hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC boosted its holdings in shares of 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 acquiring an additional 4,483 shares during the last quarter. Atlas Capital Advisors Inc. bought a new position in GAP during the fourth quarter valued at approximately $203,000. Brooklyn Investment Group bought a new position in GAP during the fourth quarter valued at approximately $312,000. Amundi purchased a new stake in GAP in the first quarter worth approximately $259,000. Finally, Jump Financial LLC bought a new stake in GAP in the 2nd quarter worth approximately $612,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have recently commented on GAP. Bank of America boosted their target price on shares of GAP from $23.00 to $27.00 and gave the company a “neutral” rating in a report on Friday, November 21st. Telsey Advisory Group boosted their price objective on shares of GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research note on Monday. Evercore raised their target price on shares of GAP from $25.00 to $28.00 and gave the company an “outperform” rating in a research note on Friday, November 21st. Barclays reiterated an “overweight” rating on shares of GAP in a report on Tuesday, January 6th. Finally, Morgan Stanley upped their price target on GAP from $30.00 to $31.00 and gave the stock an “overweight” rating in a research note on Friday, November 21st. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $30.54.

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.