Q1 26 EPS
$0.51
BEAT +13.33%
Est. $0.45
Q1 26 Revenue
$3.46B
vs S&P Since Q1 26
-44.3%
TRAILING MARKET
GAP -16.9% vs S&P +27.5%
Market Reaction
Did GAP Beat Earnings? Q1 2026 Results
Gap Inc. Kicked off fiscal 2026 on solid footing, posting first-quarter earnings per share of $0.51 against a consensus estimate of $0.46, a 10.87% beat, while net sales climbed 2.2% year-over-year to $3.46 billion, marking the company's ninth consec… Read more Gap Inc. Kicked off fiscal 2026 on solid footing, posting first-quarter earnings per share of $0.51 against a consensus estimate of $0.46, a 10.87% beat, while net sales climbed 2.2% year-over-year to $3.46 billion, marking the company's ninth consecutive quarter of market share gains. The performance was anchored by Old Navy's 3% comparable sales growth and $1.98 billion in net sales, while the namesake Gap brand stood out with a 5% comp increase to $724 million, its sixth straight quarter of positive comps. Operating margin expanded 140 basis points to 7.5%, with gross margin reaching 41.8%, as disciplined cost management offset a softer showing from Athleta, where comps fell 8% amid an ongoing brand reset. Shares retreated despite the beat, however, as investors digested guidance that current tariffs could weigh on fiscal 2025 operating income by $100 million to $150 million, primarily in the back half, even after mitigation efforts. For the full year, Gap expects net sales growth of 1% to 2% and underlying operating income growth of 8% to 10%, excluding that tariff drag.
Key Takeaways
- • 9th consecutive quarter of market share gains
- • 5th consecutive quarter of positive comparable sales
- • Online sales increased 6% year-over-year, representing 39% of total net sales
- • Gross margin expanded 60 basis points to 41.8% driven by ROD leverage
- • Operating margin improved 140 basis points to 7.5%
- • Gap brand reinvigoration playbook driving 5% comp sales growth
- • Old Navy continued momentum with 3% comp sales growth
GAP YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
GAP Revenue by Segment
With YoY comparisons, source: SEC Filings
GAP Revenue by Geography
With YoY comparisons, source: SEC Filings
“Gap Inc. delivered strong first quarter results, exceeding financial expectations and gaining market share for the 9th consecutive quarter.”
— Richard Dickson, Q1 2026 Earnings Press Release
GAP Earnings Trends
GAP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
GAP EPS Trend
Earnings per share: estimate vs actual
GAP Revenue Trend
Quarterly revenue: estimate vs actual
GAP Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 27 MISS | $0.48 | $0.38 | -20.83% | $3.50B | -0.78% |
| Q4 26 MISS FY | $0.45 | $0.45 | -0.73% | $4.24B | -0.18% |
| FY Full Year | $2.15 | $2.13 | -1.10% | $15.37B | -0.04% |
| Q3 26 BEAT | $0.59 | $0.62 | +5.08% | $3.94B | +0.96% |
| Q2 26 BEAT | $0.55 | $0.57 | +3.64% | $3.73B | -0.21% |
| Q1 26 BEAT | $0.45 | $0.51 | +13.33% | $3.46B | — |