Zacks Investment Research·Jun 24, 2026
Gap Advances Digital Transformation With AI-Led Marketing OverhaulGAP is leveraging AI, data analytics and strategic partnerships to personalize marketing, boost engagement and support long-term growth.
The Gap, Inc.(GAP)Earnings, Financials & Key Ratios
GAP•NYSE
$19.07
8.9× P/E·Price updated Jul 7, 2026
AboutThe Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, Athleta, and Banana Republic stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. As of December 31, 2021, the company had 2,835 company-operated stores and 564 franchise stores. It also provides its products through e-commerce sites. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.Show more
- Revenue$15.37B+1.9%
- EBITDA$1.61B
- Net Income$816M-3.3%
- EPS (Diluted)2.14-2.7%
- Gross Margin40.79%-1.2%
- EBITDA Margin10.48%-1.9%
- Operating Margin7.26%-1.6%
- Net Margin5.31%-5.1%
- ROE23.1%-19.8%
GAP Price & Volume
The Gap, Inc. (GAP) stock price & volume — 10-year historical chart
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Stagnant Revenue Growth Masks Persistent Margin Volatility
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Stable
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Promotional Margin Erosion
Key Thesis Takeaways
- The Gap, Inc.
- faces a challenging outlook characterized by muted 1.0% revenue growth in 2026Q1 and structural vulnerability to seasonal promotional cycles that frequently compress gross margins.
- While the company has bolstered its equity base to $3.7 billion, aggressive capital allocation—evidenced by $401 million in share repurchases during 2026Q1—may outpace internal cash generation.
- Investors should monitor the sustainability of operating margins, which reached 12.7% in 2026Q1, as the firm navigates high fixed-cost overhead and intense competitive pricing pressures.
Verdict Logic
while the stock trades at a 9.44 P/E ratio, the inconsistency in free cash flow margins, which ranged from -6.4% to 16.4% over the last ten quarters, warrants a cautious approach.
GAP Growth Metrics
The Gap, Inc. (GAP) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-0.28%
5 Years2.17%
3 Years-0.54%
TTM1.58%
Profit CAGR
10 Years-1.19%
5 Years-
3 Years-
TTM9.44%
EPS CAGR
10 Years-0.41%
5 Years-
3 Years-
TTM9.96%
Return on Capital
10 Years11.44%
5 Years8.14%
3 Years10.93%
Last Year12.42%
GAP Recent Earnings
The Gap, Inc. (GAP) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 11/12 qtrs (92%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
May 28, 2026Metric
Actual
Est
EPS
$0.38+1.8%
$0.37
Rev
$3.5B-0.5%
$3.5B
Q2 2026
Mar 5, 2026Metric
Actual
Est
EPS
$0.45+0.0%
$0.45
Rev
$4.2B-0.2%
$4.2B
Q4 2025
Nov 20, 2025Metric
Actual
Est
EPS
$0.62+5.6%
$0.59
Rev
$3.9B+1.0%
$3.9B
Q3 2025
Aug 28, 2025Metric
Actual
Est
EPS
$0.57+3.4%
$0.55
Rev
$3.7B-0.2%
$3.7B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 28, 2026 | $0.38vs $0.37+1.8% | $3.5Bvs $3.5B-0.5% |
| Q2 2026 | Mar 5, 2026 | $0.45vs $0.45+0.0% | $4.2Bvs $4.2B-0.2% |
| Q4 2025 | Nov 20, 2025 | $0.62vs $0.59+5.6% | $3.9Bvs $3.9B+1.0% |
| Q3 2025 | Aug 28, 2025 | $0.57vs $0.55+3.4% | $3.7Bvs $3.7B-0.2% |
Based on last 12 quarters of dataView full earnings history →
Latest GAP News
Recent stock market news and headlines for The Gap, Inc. (GAP)
MarketBeat·Jun 23, 2026
American Eagle's Q1 Beat Leaves Investors With a Bigger QuestionAmerican Eagle Outfitters TodayAEOAmerican Eagle Outfitters$17.75 -0.04 (-0.22%) As of 03:58 PM Eastern52-Week Range$9.49▼$28.46Dividend Yield2.82%P/E Ratio10.96Price Target$20.36Add to WatchlistAmerican Eagle Outfitters Inc. NYSE: AEO has posted consecutive earnings beats. Yet even after delivering another better-than-expected quarter on May 28, shares sold off as concerns about weakness in the core American Eagle brand and pressure on second-quarter gross margin overshadowed stellar performance at Aerie.
Peers Comparison
Key metrics vs top competitors for The Gap, Inc. (GAP)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $19.07 | $6.86B | 8.91 | 1.86% | 5.31% | 23.1% | 3.37% | |
| $89.07 | $4B | 8.52 | 6.42% | 9.34% | 36.48% | — | |
| $16.53 | $2.77B | 15.16 | 3.16% | 5% | 17.24% | — | |
| $68.21 | $6.12B | 13.48 | 11.07% | 7.48% | 17.64% | — | |
| $77.05 | $3.55B | 145.38 | 3.44% | 0.25% | 0.45% | — | |
| $6.47 | $2.29B | -7.11 | -3.63% | 9.59% | 73.92% | — |
Compare GAP vs Peers
The Gap, Inc. (GAP) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
GAP SEC Filings & Documents
The Gap, Inc. (GAP) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 28, 2026·SEC
Material company update
May 15, 2026·SEC
Material company update
Mar 12, 2026·SEC
10-K Annual Reports
1FY 2026
Mar 17, 2026·SEC
10-Q Quarterly Reports
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GAP Frequently Asked Questions
The Gap, Inc. (GAP) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is The Gap, Inc.'s revenue?
The Gap, Inc. (GAP) reported $15.40B in revenue for fiscal year 2025. This represents a 191% increase from $5.28B in 1996.
How fast is The Gap, Inc. growing?
The Gap, Inc. (GAP) grew revenue by 1.9% over the past year. Growth has been modest.
Is GAP profitable?
Yes, The Gap, Inc. (GAP) is profitable, generating $962.0M in net income for fiscal year 2025 (5.3% net margin).
Dividend & Returns
Does GAP pay dividends?
Yes, The Gap, Inc. (GAP) pays a dividend with a yield of 3.37%. This makes it attractive for income-focused investors.
What is GAP's return on equity?
The Gap, Inc. (GAP) has a return on equity (ROE) of 23.1%. This is excellent, indicating efficient use of shareholder capital.
What is The Gap, Inc.'s free cash flow?
The Gap, Inc. (GAP) generated $1.28B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.