GAP GAP INC
Price Chart
Executive Summary
Gap Inc. reported Q1 FY2026 adjusted diluted EPS of $0.38, slightly below the $0.39 consensus, on net sales of $3.50B (up 1% YoY but below the $3.70B estimate). The headline GAAP EPS of $0.90 was inflated by a $313M legal settlement. The company raised its full-year adjusted EPS guidance to $2.30-$2.40 (from $2.20-$2.35), citing tariff relief and share repurchases, but trimmed net sales growth guidance to 1%-2% (from 2%-3%), signaling a more cautious top-line outlook.
Key Financial Metrics
Actionable Insight
The revenue miss and trimmed top-line guidance are offset by the raised EPS outlook driven by buybacks and tariff relief. Watch Q2 guidance for flat-to-down sales — this suggests near-term caution. The $599M remaining buyback authorization provides a floor. Monitor Athleta's turnaround (down 11% comp) and tariff developments for FY trajectory.
Key Facts
- Q1 FY2026 net sales of $3.50B, up 1% YoY, below consensus of $3.70B
- GAAP diluted EPS of $0.90 (includes $0.61 from legal settlement); adjusted diluted EPS of $0.38 vs consensus $0.39
- Comparable sales up 2% — ninth consecutive quarter of positive comps
- Gross margin of 40.5% decreased 130 bps YoY, but exceeded company outlook
- Raised full-year adjusted EPS guidance to $2.30-$2.40 from $2.20-$2.35
- Narrowed full-year net sales growth guidance to 1%-2% from 2%-3%
- Returned $464M to shareholders via $401M in share repurchases and $63M in dividends
- Q2 FY2026 net sales guidance: flat to down 1% YoY
- Expects ~$80M net tariff relief to gross profit in FY2026
Financial Impact
Adjusted EPS of $0.38 vs $0.39 consensus (-2.6% miss); revenue miss of ~$200M vs consensus; raised FY adjusted EPS guidance by ~$0.10 at midpoint
Risk Factors
- Revenue growth slowing to 1%-2% with Q2 guided flat-to-down 1%
- Athleta comparable sales declining 11% — brand remains in restructuring
- Gross margin pressure from tariffs (~200 bps impact in Q1) despite some relief expected
- Online sales declined 2% YoY — digital channel headwinds
- Consumer spending uncertainty and potential tariff escalation
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-038825 |
| Document: gps-20260528.htm | 0001628280-26-038825 |
| Document: 0001628280-26-038825-index-headers.html | 0001628280-26-038825 |
| Document: 0001628280-26-038825-index.html | 0001628280-26-038825 |
| Document: 0001628280-26-038825.txt | 0001628280-26-038825 |
| 8-K Data (Synthetic) | 0001628280-26-038825 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
May 28, 2026
15d ago
|
8-K
| $21.15 $21.56 | ▲ +1.94% | ▲ +4.44% | $21.89 (+3.50%) |
|
Apr 10, 2026
9w ago
|
Insider Cluster
| $26.30 $27.02 | ▼ −2.74% | ▲ +1.77% | $21.89 (+16.77%) |
|
Apr 6, 2026
9w ago
|
Insider Cluster
| $25.17 $25.28 | ▼ −0.43% | ▲ +3.70% | $21.89 (+13.03%) |
|
Mar 27, 2026
11w ago
|
DEFA14A
| $23.66 $24.56 | ▲ +3.78% | ▼ −0.52% | $21.89 (−7.49%) |
|
Mar 17, 2026
12w ago
|
Insider Cluster
| $23.68 $25.31 | ▼ −6.88% | ▼ −9.53% | $21.89 (+7.56%) |
|
Mar 17, 2026
12w ago
|
Insider Cluster
| $23.68 $25.31 | ▼ −6.88% | ▼ −9.53% | $21.89 (+7.56%) |
|
Mar 17, 2026
12w ago
|
Insider Cluster
| $23.68 $25.31 | ▲ +6.88% | ▲ +9.53% | $21.89 (−7.56%) |
|
Mar 17, 2026
12w ago
|
Insider Cluster
| $23.68 $25.31 | ▲ +6.88% | ▲ +9.53% | $21.89 (−7.56%) |
|
Mar 16, 2026
12w ago
|
Insider Cluster
| $23.17 $24.53 | ▲ +5.83% | ▲ +7.87% | $21.89 (−5.54%) |
|
Mar 16, 2026
12w ago
|
Insider Cluster
| $23.17 $24.53 | ▲ +5.83% | ▲ +7.87% | $21.89 (−5.54%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access