Q2 26 EPS
$0.57
BEAT +3.64%
Est. $0.55
Q2 26 Revenue
$3.73B
MISS 0.21%
Est. $3.73B
vs S&P Since Q2 26
-25.5%
TRAILING MARKET
GAP -9.0% vs S&P +16.5%
Market Reaction
Did GAP Beat Earnings? Q2 2026 Results
Gap Inc. Delivered a largely steady second quarter for fiscal 2025, posting earnings per share of $0.57 that edged past the $0.55 consensus estimate by 3.98%, even as revenue of $3.73 billion came in essentially flat, up just 0.1% year-over-year and … Read more Gap Inc. Delivered a largely steady second quarter for fiscal 2025, posting earnings per share of $0.57 that edged past the $0.55 consensus estimate by 3.98%, even as revenue of $3.73 billion came in essentially flat, up just 0.1% year-over-year and a hair below expectations. The profitability beat reflected disciplined cost management, though gross margin contracted 140 basis points to 41.2% as the company lapped a prior-year credit card revenue-sharing benefit that weighed on merchandise margin. Brand performance was uneven: Gap and Banana Republic both extended their positive comparable sales streaks, while Old Navy held steady as the portfolio's anchor at $2.15 billion in quarterly sales. Athleta remained a drag, with sales falling 11% to $300 million as the brand works through a longer-term reset, a challenge management is now pairing with an ambitious expansion into beauty and accessories. Looking ahead, Gap reaffirmed full-year net sales growth of 1% to 2% and an operating margin of 6.7% to 7.0%, though an estimated 100 to 110 basis points of net tariff impact continues to cloud the path forward.
Key Takeaways
- • Positive comparable sales for 6th consecutive quarter driven by Old Navy, Gap, and Banana Republic
- • Online sales increased 3% year-over-year, representing 34% of total net sales
- • Gap brand achieved positive comparable sales for the 7th consecutive quarter
- • Banana Republic comparable sales up 4% as foundational brand re-establishment resonates with consumers
- • Merchandise margin declined 150 basis points from lapping prior-year credit card revenue-sharing benefit
GAP YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
GAP Revenue by Segment
With YoY comparisons, source: SEC Filings
GAP Revenue by Geography
With YoY comparisons, source: SEC Filings
“In the second quarter, Gap Inc. overdelivered on profit expectations and achieved our topline goals. With positive comps for the sixth consecutive quarter, fueled by our three largest brands Old Navy, Gap and Banana Republic, it's clear our strategy is working.”
— Richard Dickson, Q2 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 | — |