Zacks Research Has Optimistic Outlook of GAP Q1 Earnings

The Gap, Inc. (NYSE:GAP) – Investment analysts at Zacks Research lifted their Q1 2026 EPS estimates for shares of GAP in a report issued on Thursday, March 13th. Zacks Research analyst R. Lohia now anticipates that the company will post earnings of $0.42 per share for the quarter, up from their previous estimate of $0.40. The consensus estimate for GAP’s current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP’s Q2 2026 earnings at $0.59 EPS, Q3 2026 earnings at $0.75 EPS, Q4 2026 earnings at $0.57 EPS, FY2026 earnings at $2.34 EPS, Q1 2027 earnings at $0.46 EPS, Q2 2027 earnings at $0.64 EPS, Q3 2027 earnings at $0.79 EPS, Q4 2027 earnings at $0.60 EPS, FY2027 earnings at $2.49 EPS and FY2028 earnings at $2.61 EPS.

Other analysts also recently issued research reports about the stock. BMO Capital Markets lifted their target price on shares of GAP from $23.00 to $25.00 and gave the stock a “market perform” rating in a report on Friday, November 22nd. Morgan Stanley upped their price target on shares of GAP from $29.00 to $30.00 and gave the stock an “overweight” rating in a report on Friday, November 22nd. Robert W. Baird cut their price target on shares of GAP from $31.00 to $29.00 and set a “neutral” rating for the company in a report on Friday, March 7th. Wells Fargo & Company upped their price objective on shares of GAP from $28.00 to $30.00 and gave the stock an “overweight” rating in a research report on Friday, November 22nd. Finally, Bank of America upped their price objective on shares of GAP from $25.00 to $28.00 and gave the stock a “neutral” rating in a research report on Friday, November 22nd. Five research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $29.25.

GAP Stock Down 3.8 %

GAP stock opened at $19.35 on Monday. The firm has a market capitalization of $7.30 billion, a PE ratio of 8.96, a P/E/G ratio of 0.94 and a beta of 2.38. The company’s 50-day moving average is $22.72 and its 200-day moving average is $22.53. GAP has a fifty-two week low of $18.54 and a fifty-two week high of $26.41. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.54 and a quick ratio of 0.84.

GAP (NYSE:GAP) last issued its quarterly earnings results on Thursday, March 6th. The company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.18. GAP had a net margin of 5.40% and a return on equity of 29.03%. The firm had revenue of $4.15 billion for the quarter, compared to analyst estimates of $4.07 billion.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in GAP stock. California State Teachers Retirement System acquired a new position in shares of The Gap, Inc. (NYSE:GAP) in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 209,599 shares of the company’s stock, valued at approximately $4,953,000. California State Teachers Retirement System owned about 0.06% of GAP as of its most recent filing with the Securities and Exchange Commission (SEC). 58.81% of the stock is currently owned by institutional investors.

Insider Transactions at GAP

In related news, insider Julie Gruber sold 1,537 shares of the stock in a transaction on Tuesday, March 18th. The shares were sold at an average price of $19.59, for a total transaction of $30,109.83. Following the transaction, the insider now directly owns 37,395 shares of the company’s stock, valued at $732,568.05. This represents a 3.95 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Katrina O’connell sold 80,029 shares of the stock in a transaction on Friday, March 14th. The stock was sold at an average price of $20.35, for a total transaction of $1,628,590.15. Following the transaction, the chief financial officer now directly owns 8,290 shares in the company, valued at approximately $168,701.50. This represents a 90.61 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 136,731 shares of company stock worth $2,780,326 over the last three months. 31.00% of the stock is owned by company insiders.

GAP Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 30th. Stockholders of record on Wednesday, April 9th will be given a dividend of $0.165 per share. The ex-dividend date is Wednesday, April 9th. This is a boost from GAP’s previous quarterly dividend of $0.15. This represents a $0.66 annualized dividend and a dividend yield of 3.41%. GAP’s dividend payout ratio is 29.86%.

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.