Zacks Research Issues Pessimistic Outlook for GAP Earnings

The Gap, Inc. (NYSE:GAP) – Equities research analysts at Zacks Research lowered their Q1 2027 earnings estimates for shares of GAP in a report issued on Thursday, March 19th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $0.37 for the quarter, down from their prior estimate of $0.48. Zacks Research currently 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 announced 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). GAP had a net margin of 5.31% and a return on equity of 22.98%. The firm had revenue of $4.24 billion during the quarter, compared to analysts’ expectations of $4.24 billion. During the same period in the previous year, the firm earned $0.54 EPS. The firm’s revenue for the quarter was up 2.1% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.200-2.350 EPS.

A number of other equities analysts have also recently commented on GAP. Guggenheim started coverage on GAP in a report on Tuesday, December 9th. They set a “neutral” rating for the company. Telsey Advisory Group boosted their price target on shares of GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research note on Monday, March 2nd. Weiss Ratings cut shares of GAP from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, March 12th. Citigroup lifted their price objective on shares of GAP from $25.00 to $27.00 and gave the company a “neutral” rating in a report on Friday, March 6th. Finally, JPMorgan Chase & Co. upped their target price on shares of GAP from $33.00 to $35.00 and gave the stock an “overweight” rating in a research note on Friday, March 20th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $30.62.

GAP Trading Up 3.2%

Shares of NYSE GAP opened at $25.48 on Monday. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $9.49 billion, a PE ratio of 11.85, a PEG ratio of 1.42 and a beta of 2.29. GAP has a twelve month low of $16.99 and a twelve month high of $29.36. The stock has a fifty day simple moving average of $26.59 and a 200-day simple moving average of $25.11.

GAP Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 29th. Investors of record on Wednesday, April 8th will be paid a dividend of $0.175 per share. The ex-dividend date is Wednesday, April 8th. This is a positive change from GAP’s previous quarterly dividend of $0.17. This represents a $0.70 dividend on an annualized basis and a dividend yield of 2.7%. GAP’s payout ratio is currently 30.70%.

Insider Activity

In other GAP news, insider Julie Gruber sold 74,217 shares of the stock in a transaction that occurred on 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 sale, the insider directly owned 53,970 shares of the company’s stock, valued at approximately $1,287,184.50. This represents a 57.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Katrina O’connell sold 8,486 shares of the firm’s stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $23.74, for a total transaction of $201,457.64. Following the completion of the sale, the chief financial officer owned 11,503 shares in the company, valued at $273,081.22. The trade was a 42.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 509,507 shares of company stock worth $12,158,495 in the last ninety days. 31.00% of the stock is owned by insiders.

Institutional Trading of GAP

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Ameriprise Financial Inc. boosted its position 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 worth $98,154,000 after acquiring an additional 180,991 shares in the last quarter. Geode Capital Management LLC lifted its stake in GAP by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company’s stock worth $110,750,000 after purchasing an additional 14,141 shares during the last quarter. LSV Asset Management lifted its stake in GAP by 3.6% during the fourth quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock worth $88,645,000 after purchasing an additional 121,001 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in GAP by 13.0% in the fourth quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company’s stock valued at $81,816,000 after purchasing an additional 368,191 shares in the last quarter. Finally, Miller Howard Investments Inc. NY purchased a new position in GAP in the fourth quarter valued at approximately $20,561,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap struck a first-mover partnership with Google’s Gemini that will allow customers to browse and checkout directly inside Gemini’s AI experience — a potential new high-conversion sales channel and marketing differentiator for Gap’s portfolio. Gap becomes the first major fashion company to offer checkout within Google’s Gemini
• Positive Sentiment: Broker upside and shareholder returns: JPMorgan and other firms have raised targets (e.g., JPM to $35) and Gap recently boosted its quarterly dividend, supporting both valuation and income-oriented demand. GAP (NYSE:GAP) Price Target Raised to $35.00 MarketBeat: GAP dividend & analyst notes
• Positive Sentiment: Brand and marketing momentum: profiles highlight Gap’s creative relaunch and collaborations that are restoring relevance with younger shoppers — a qualitative tailwind for sales and margin recovery. How Gap danced its way back to relevance
• Neutral Sentiment: Limited-scope product drops and streetwear collabs (e.g., Awake NY) reinforce brand buzz but are unlikely by themselves to move near-term revenue materially. Awake NY and Gap’s New Collab
• Negative Sentiment: Insider selling: CEO Horacio Barbeito sold 113,684 shares (~49.7% reduction of his holding), which some investors may interpret as a negative signal or profit-taking ahead of uncertainty. Horacio Barbeito Sells 113,684 Shares of GAP
• Negative Sentiment: Some research houses have trimmed near-term earnings estimates (Zacks), which could cap upside if guidance or same-store-sales momentum disappoints. Zacks Research Brokers Reduce Earnings Estimates for GAP

About GAP

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.