Brokers Offer Predictions for GAP’s Q2 Earnings (NYSE:GAP)

The Gap, Inc. (NYSE:GAP) – Zacks Research lifted their Q2 2027 earnings per share estimates for shares of GAP in a research report issued to clients and investors on Thursday, June 11th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.51 per share for the quarter, up from their prior estimate of $0.50. The consensus estimate for GAP’s current full-year earnings is $2.34 per share. Zacks Research also issued estimates for GAP’s Q3 2027 earnings at $0.78 EPS, Q4 2027 earnings at $0.63 EPS, FY2027 earnings at $2.31 EPS, Q4 2028 earnings at $0.62 EPS, FY2028 earnings at $2.55 EPS, Q1 2029 earnings at $0.56 EPS and FY2029 earnings at $2.82 EPS.

Other analysts also recently issued research reports about the company. Bank of America dropped their price objective on GAP from $29.00 to $26.00 and set a “neutral” rating on the stock in a research note on Friday, May 29th. Telsey Advisory Group lifted their target price on GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a report on Monday, March 2nd. TD Cowen decreased their target price on GAP from $32.00 to $26.00 and set a “buy” rating on the stock in a report on Monday, May 18th. Weiss Ratings upgraded GAP from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, March 25th. Finally, JPMorgan Chase & Co. restated a “neutral” rating and issued a $27.00 target price (down from $35.00) on shares of GAP in a report on Friday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $28.71.

GAP Stock Up 3.3%

GAP opened at $21.80 on Friday. GAP has a one year low of $18.68 and a one year high of $29.36. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. The stock’s fifty day moving average is $23.63 and its 200-day moving average is $25.50. The company has a market capitalization of $7.85 billion, a PE ratio of 8.58, a P/E/G ratio of 1.25 and a beta of 2.03.

GAP (NYSE:GAP) last posted its quarterly earnings data on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a return on equity of 21.13% and a net margin of 6.25%.The firm had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.52 billion. During the same period in the prior year, the firm posted $0.51 EPS. The firm’s quarterly revenue was up 1.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.300-2.400 EPS.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. LSV Asset Management grew its holdings in shares of GAP by 3.6% during the fourth quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock valued at $88,645,000 after buying an additional 121,001 shares in the last quarter. Quantbot Technologies LP purchased a new position in shares of GAP during the third quarter valued at $1,845,000. Bank of New York Mellon Corp grew its holdings in shares of GAP by 13.0% during 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 buying an additional 368,191 shares in the last quarter. Quent Capital LLC grew its holdings in shares of GAP by 1,900.2% during the fourth quarter. Quent Capital LLC now owns 21,202 shares of the company’s stock valued at $543,000 after buying an additional 20,142 shares in the last quarter. Finally, Miller Howard Investments Inc. NY purchased a new position in shares of GAP during the fourth quarter valued at $20,561,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

Insiders Place Their Bets

In related news, CFO Katrina O’connell sold 153,413 shares of GAP stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $23.85, for a total value of $3,658,900.05. Following the transaction, the chief financial officer directly owned 11,503 shares in the company, valued at $274,346.55. The trade was a 93.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Horacio Barbeito sold 113,684 shares of GAP stock in a transaction on Friday, March 20th. The shares were sold at an average price of $24.01, for a total value of $2,729,552.84. Following the transaction, the chief executive officer owned 115,024 shares in the company, valued at $2,761,726.24. This represents a 49.71% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 923,098 shares of company stock worth $22,648,158. Corporate insiders own 31.00% of the company’s stock.

GAP Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th will be issued a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Wednesday, July 8th. GAP’s payout ratio is presently 27.56%.

Key GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS estimate for The Gap, Inc. to $2.31 from $2.25, suggesting a modestly improved earnings outlook for that year.
• Positive Sentiment: Zacks Research also increased its Q2 2027 EPS estimate to $0.51 from $0.50 and its Q3 2027 estimate to $0.78 from $0.73, reflecting stronger near- to mid-term profit expectations.
• Positive Sentiment: Retail and brand-related coverage around Gap merchandise, including a Water.org collaboration and interest in Hailey Bieber’s Gap jeans, could support consumer awareness and sales momentum.
• Neutral Sentiment: Gap also received a momentum-stock mention from Zacks, which is more of a screening note than a direct fundamental catalyst.
• Negative Sentiment: Zacks Research lowered several longer-term EPS forecasts, including FY2028 to $2.55 from $2.58, FY2029 to $2.82 from $2.85, Q4 2028 to $0.62 from $0.65, Q4 2027 to $0.63 from $0.64, and Q1 2029 to $0.56 from $0.59, which may weigh on sentiment.
• Negative Sentiment: Investor concern also rose after two law firms announced investigations into possible securities-law violations at Gap, creating overhang from potential litigation risk.
• Negative Sentiment: The company remains below recent highs and recently missed its latest quarterly EPS and revenue estimates, so analysts’ mixed revisions may reinforce concerns about execution.

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.