Brokers Set Expectations for GAP’s Q1 Earnings (NYSE:GAP)

The Gap, Inc. (NYSE:GAP) – Research analysts at Zacks Research dropped their Q1 2027 earnings per share (EPS) estimates for GAP in a research report issued on Thursday, March 19th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.37 for the quarter, down from their prior forecast of $0.48. Zacks Research has a “Hold” 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 Q2 2027 earnings at $0.50 EPS, Q3 2027 earnings at $0.73 EPS, FY2027 earnings at $2.25 EPS, Q1 2028 earnings at $0.48 EPS, Q2 2028 earnings at $0.62 EPS, Q3 2028 earnings at $0.83 EPS, Q4 2028 earnings at $0.65 EPS, FY2028 earnings at $2.58 EPS and FY2029 earnings at $2.85 EPS.

GAP (NYSE:GAP) last issued its earnings results on Thursday, March 5th. The company reported $0.45 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.01). The company had revenue of $4.24 billion for the quarter, compared to analysts’ expectations of $4.24 billion. GAP had a net margin of 5.31% and a return on equity of 22.98%. The firm’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.54 earnings per share. GAP has set its FY 2026 guidance at 2.200-2.350 EPS.

Several other research analysts also recently commented on the company. Wells Fargo & Company set a $30.00 price objective on GAP and gave the stock an “overweight” rating in a report on Tuesday, December 16th. Telsey Advisory Group increased their price target on GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research report on Monday, March 2nd. JPMorgan Chase & Co. raised their price target on GAP from $33.00 to $35.00 and gave the company an “overweight” rating in a research note on Friday. Citigroup lifted their price objective on GAP from $25.00 to $27.00 and gave the company a “neutral” rating in a report on Friday, March 6th. Finally, Weiss Ratings lowered shares of GAP from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, March 12th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $30.62.

GAP Price Performance

Shares of GAP stock opened at $23.90 on Monday. The company’s 50-day simple moving average is $26.69 and its two-hundred day simple moving average is $25.09. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.75 and a quick ratio of 1.08. GAP has a one year low of $16.99 and a one year high of $29.36. The company has a market capitalization of $8.90 billion, a P/E ratio of 11.11, a P/E/G ratio of 1.38 and a beta of 2.29.

GAP Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 29th. Shareholders of record on Wednesday, April 8th will be issued a $0.175 dividend. This is a boost from GAP’s previous quarterly dividend of $0.17. This represents a $0.70 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Wednesday, April 8th. GAP’s dividend payout ratio is presently 30.70%.

Insider Buying and Selling at GAP

In other news, CEO Mark Breitbard sold 8,486 shares of the company’s stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $23.73, for a total transaction of $201,372.78. Following the transaction, the chief executive officer directly owned 135,884 shares of the company’s stock, valued at approximately $3,224,527.32. This represents a 5.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Julie Gruber sold 74,217 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $23.85, for a total value of $1,770,075.45. Following the transaction, the insider directly owned 53,970 shares in the company, valued at $1,287,184.50. This represents a 57.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 395,823 shares of company stock valued at $9,428,942. 31.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GAP

A number of large investors have recently modified their holdings of the business. Public Employees Retirement System of Ohio raised its position in shares of GAP by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock valued at $1,537,000 after purchasing an additional 447 shares during the last quarter. Oregon Public Employees Retirement Fund grew its position in GAP by 1.3% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 45,799 shares of the company’s stock worth $980,000 after purchasing an additional 600 shares during the last quarter. Cullen Frost Bankers Inc. acquired a new position in GAP during the 4th quarter valued at approximately $26,000. Plato Investment Management Ltd acquired a new position in GAP during the 4th quarter valued at approximately $28,000. Finally, V Square Quantitative Management LLC purchased a new position in shares of GAP in the fourth quarter worth $31,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

Key GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Zacks Research lifted several longer‑term/seasonal EPS forecasts and full‑year targets (FY2027, FY2028 and FY2029 and some Q3 estimates), suggesting improvement in medium‑term profitability expectations. Analysts still carry a “Hold” rating, so the upgrades are constructive but not a buy signal.
• Neutral Sentiment: Press/consumer coverage highlights strong demand for core Basics (example: positive writeup about a $15 tank top), which can support same‑store sales and brand relevance but is not a direct earnings catalyst on its own. The Platonic Ideal of a Tank Top for $15
• Negative Sentiment: Zacks trimmed several near‑term quarterly EPS estimates (notably Q1 and Q2 of FY2027 and parts of FY2028), indicating nearer‑term cadence risks even as longer‑term estimates were raised. This mixed guidance shift can create uncertainty around upcoming quarters and weigh on the stock.
• Negative Sentiment: Recent insider sales: The CFO filed a large sale of common stock valued at roughly $3.66 million (reported 3/21). Significant director/executive sales at this scale often trigger investor concern about insider conviction. Insider Selling: GAP (NYSE:GAP) CFO Sells $3,658,900.05 in Stock
• Negative Sentiment: Follow‑on insider transactions: smaller but recent sales by the CFO (~$201.5k) and the CEO (~$201.4k) were reported 3/22. While smaller, clustered insider selling from top executives can amplify negative market reaction. Insider Selling: GAP (NYSE:GAP) CFO Sells $201,457.64 in Stock Insider Selling: GAP (NYSE:GAP) CEO Sells $201,372.78 in Stock

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.