Zacks Research Issues Negative Outlook for GAP Earnings

The Gap, Inc. (NYSE:GAP) – Stock analysts at Zacks Research reduced their Q3 2026 earnings estimates for GAP in a research note issued on Thursday, September 11th. Zacks Research analyst Team now forecasts that the company will earn $0.57 per share for the quarter, down from their previous estimate of $0.67. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for GAP’s current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP’s Q4 2026 earnings at $0.42 EPS, FY2026 earnings at $2.07 EPS, Q2 2027 earnings at $0.60 EPS, Q3 2027 earnings at $0.61 EPS, Q4 2027 earnings at $0.44 EPS, FY2027 earnings at $2.14 EPS, Q2 2028 earnings at $0.68 EPS and FY2028 earnings at $2.45 EPS.

GAP (NYSE:GAP) last released its quarterly earnings results on Thursday, August 28th. The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.55 by $0.02. GAP had a net margin of 5.86% and a return on equity of 27.04%. The business had revenue of $3.73 billion for the quarter, compared to the consensus estimate of $3.73 billion. During the same period in the prior year, the company posted $0.54 earnings per share. GAP’s revenue was up .1% compared to the same quarter last year. GAP has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS.

Other equities research analysts also recently issued reports about the stock. Telsey Advisory Group reduced their price objective on shares of GAP from $26.00 to $24.00 and set a “market perform” rating on the stock in a research note on Tuesday, September 2nd. The Goldman Sachs Group reduced their price objective on shares of GAP from $28.00 to $26.00 and set a “buy” rating on the stock in a research note on Tuesday, July 22nd. Wall Street Zen downgraded shares of GAP from a “buy” rating to a “hold” rating in a research note on Sunday, August 3rd. JPMorgan Chase & Co. increased their price objective on shares of GAP from $29.00 to $32.00 and gave the stock an “overweight” rating in a research note on Friday, August 29th. Finally, Jefferies Financial Group set a $22.00 price objective on shares of GAP in a research note on Thursday, September 4th. Six equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $25.40.

GAP Trading Down 5.5%

GAP stock opened at $22.90 on Friday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.96 and a current ratio of 1.68. The company’s 50-day simple moving average is $21.37 and its 200 day simple moving average is $21.77. GAP has a 52 week low of $16.99 and a 52 week high of $29.29. The company has a market capitalization of $8.50 billion, a PE ratio of 9.79, a price-to-earnings-growth ratio of 2.76 and a beta of 2.09.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in GAP. California State Teachers Retirement System bought a new position in GAP in the 4th quarter valued at approximately $4,953,000. GAMMA Investing LLC acquired a new stake in GAP during the 1st quarter valued at approximately $1,971,000. Rhumbline Advisers acquired a new stake in GAP during the 1st quarter valued at approximately $12,210,000. SG Americas Securities LLC acquired a new stake in GAP during the 1st quarter valued at approximately $3,519,000. Finally, Handelsbanken Fonder AB acquired a new stake in GAP during the 1st quarter valued at approximately $1,107,000. Institutional investors own 58.81% of the company’s stock.

Insider Transactions at GAP

In related news, Director William Sydney Fisher sold 243,064 shares of the firm’s stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $23.82, for a total value of $5,789,784.48. Following the completion of the transaction, the director owned 3,453,453 shares in the company, valued at $82,261,250.46. This trade represents a 6.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 30.56% of the stock is currently owned by company insiders.

GAP Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 29th. Investors of record on Wednesday, October 8th will be issued a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Wednesday, October 8th. GAP’s dividend payout ratio (DPR) is 28.21%.

GAP Company Profile

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.