A Business at a Glance
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GAP INC
GAP
$7.3B
Mkt Cap
$19.01
+0.69%
GAP INC (GAP) has a current P/E ratio of 8.6, compared to its historical median P/E of 11.2. The stock is currently considered Fair based on its historical valuation range.
GAP INC (GAP) has a 5-year average return on invested capital (ROIC) of 21.5%. This indicates strong capital allocation and a potential competitive advantage.
GAP INC (GAP) has a market capitalization of $7.3B. It is classified as a mid-cap stock.
Yes, GAP INC (GAP) pays a dividend with a trailing twelve-month yield of 3.39%. The company also returns capital through share buybacks, with a buyback yield of 2.13%.
Based on historical P/E analysis, GAP INC (GAP) appears fair. The current P/E of 8.6 is 23% below its historical median of 11.2. The estimated fair value CAGR (P/E method) is -2.0%.
GAP INC (GAP) operates in the Retail-Family Clothing Stores industry, within the Consumer Cyclical sector.
GAP INC (GAP) reported annual revenue of $15.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
Gap Inc. is a multinational omni-channel apparel and accessories retailer operating four primary brands—Old Navy, Gap, Banana Republic, and Athleta—that serve men, women, and children across specialty, outlet, and online channels. The company generates revenue through Company-operated stores (2,474 as of January 31, 2026), franchise agreements spanning Asia, Europe, Latin America, the Middle East, and Africa, licensing arrangements, and direct-to-consumer digital sales, with integrated omni-channel services including buy-online-pick-up-in-store and ship-from-store capabilities. Old Navy operates as a North American value apparel brand with over 1,200 stores; Gap, founded in 1969, is a globally recognized casual American style brand with multiple sub-collections; Banana Republic offers high-quality, expertly crafted collections; and Athleta, a certified B Corp acquired in 2008, focuses on premium performance lifestyle products for women and girls. The company's business model relies on product design and development informed by customer data and fashion trends, disciplined inventory management with unit purchases positioned below sales, and a unified loyalty program (Encore, rebranded in Q1 fiscal 2026) that operates across all brands to drive customer lifetime value through personalization and first-party data. Gap Inc. maintains shared investments in supply chain and information technology infrastructure across its brands to optimize operational efficiency and responsiveness, while generating ancillary revenue through private-label and co-branded credit card programs administered by third-party financing partners.
【Strategic transformation momentum building】 Management expects continued comparable sales growth across the three largest brands (Old Navy, Gap, and Banana Republic) in fiscal 2026, with Gap brand anticipated to deliver high single-digit comps and Old Navy expected to post flat to up 1% comps as denim and active categories gain prominence in the second half. The company is executing targeted investments in growth accelerators including beauty rollout to the full store fleet by year-end, a first-of-its-kind partnership with Fanatics for sports licensing, and approximately 30 store remodels to bring roughly 25% of the North America specialty fleet into a new concept by year-end. Management is reserving approximately half of the anticipated $80 million in net tariff relief as a buffer against sustained fuel cost elevation and the remaining half for potential pricing flexibility should the promotional environment intensify, while maintaining a balanced capital allocation framework that prioritizes organic investments in stores, technology, and supply chain, alongside dividend growth and share repurchases.
| Metric | Target | Period |
|---|---|---|
| Net sales growth | 1%-2% | FY2026 |
| Operating margin | approximately 7.3%-7.5% | FY2026 |
| Adjusted EPS | $2.20-$2.35 | FY2026 |
| Capital expenditures | approximately $650 million | FY2026 |
| Old Navy comparable sales | flat to up 1% | FY2026 |
| Gap brand comparable sales | high single digits | FY2026 |
| Gross margin | flat to up slightly | FY2026 |
| Net tariff relief | approximately $80 million or 50 basis points | FY2026 |
Net sales growth (FY2026): “we now expect full-year net sales growth of 1%-2%”
Operating margin (FY2026): “we expect an adjusted operating margin of about 7.3%-7.5% for the full year”
Adjusted EPS (FY2026): “We expect an adjusted EPS of $2.20-$2.35, representing growth of 4%-10% year-over-year”
Capital expenditures (FY2026): “For fiscal 2026, we continue to expect approximately $650 million in investments related primarily to stores, technology, and supply chain”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 15.4B | 15.4B | 15.1B | 14.9B | 15.6B | 16.7B |
| Net Income | 816M | 816M | 844M | 502M | -202M | 256M |
| EPS | $2.13 | $2.13 | $2.20 | $1.34 | $-0.55 | $0.67 |
| Free Cash Flow | 823M | 823M | 1.0B | 1.1B | -78M | 115M |
| ROIC | 30.0% | 34.1% | 37.7% | 20.0% | -5.1% | 20.8% |
| Gross Margin | 40.8% | 40.8% | 41.3% | 38.8% | 34.3% | 39.8% |
| Debt/Equity | 0.39 | 0.39 | 0.46 | 0.57 | 0.82 | 0.55 |
| Dividends/Share | $0.64 | $0.66 | $0.60 | $0.60 | $0.60 | $0.59 |
| Operating Income | 1.1B | 1.1B | 1.1B | 560M | -69M | 810M |
| Operating Margin | 7.3% | 7.3% | 7.4% | 3.8% | -0.4% | 4.9% |
| ROE | 21.5% | 23.1% | 28.8% | 20.8% | -8.2% | 9.6% |
| Shares Outstanding | 383M | 383M | 384M | 375M | 367M | 382M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 16.4B | 15.8B | 15.5B | 15.9B | 16.6B | 16.4B | 13.8B | 16.7B | 15.6B | 14.9B | 15.1B | 15.4B | 15.4B |
| Gross Margin | 38.3% | 36.2% | 36.3% | 38.3% | 38.1% | 37.4% | 34.1% | 39.8% | 34.3% | 38.8% | 41.3% | 40.8% | 40.8% |
| R&D | N/A | N/A | 46M | 51M | 50M | 41M | 46M | 41M | 46M | 37M | 40M | 60M | 60M |
| SG&A | N/A | N/A | N/A | 4.6B | 5.0B | 5.6B | 3.8B | 5.8B | 5.3B | 5.2B | 5.1B | 5.2B | 5.2B |
| EBIT | 2.1B | 1.5B | 1.2B | 1.5B | 1.4B | 574M | -862M | 810M | -69M | 560M | 1.1B | 1.1B | 1.1B |
| Op. Margin | 12.7% | 9.6% | 7.7% | 9.3% | 8.2% | 3.5% | -6.2% | 4.9% | -0.4% | 3.8% | 7.4% | 7.3% | 7.3% |
| Net Income | 1.3B | 920M | 676M | 848M | 1.0B | 351M | -665M | 256M | -202M | 502M | 844M | 816M | 816M |
| Net Margin | 7.7% | 5.8% | 4.4% | 5.3% | 6.0% | 2.1% | -4.8% | 1.5% | -1.3% | 3.4% | 5.6% | 5.3% | 5.3% |
| Non-Recurring | 0 | 0 | 268M | 11M | 4.0M | 131M | 0 | 0 | -35M | 93M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 44.2% | 33.6% | 29.2% | 35.5% | 32.9% | 11.7% | -14.2% | 20.8% | -5.1% | 20.0% | 37.7% | 34.1% | 30.0% |
| ROE | 41.8% | 33.3% | 24.8% | 28.0% | 30.0% | 10.2% | -22.4% | 9.6% | -8.2% | 20.8% | 28.8% | 23.1% | 21.5% |
| ROA | 16.2% | 12.1% | 9.0% | 10.9% | 12.5% | 3.2% | -4.8% | 1.9% | -1.7% | 4.5% | 7.4% | 6.7% | 6.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.1B | 1.6B | 1.7B | 1.4B | 1.4B | 1.4B | 237M | 809M | 607M | 1.5B | 1.5B | 1.3B | 1.3B |
| Free Cash Flow | 1.4B | 868M | 1.2B | 649M | 676M | 709M | -155M | 115M | -78M | 1.1B | 1.0B | 823M | 823M |
| Owner Earnings | 1.5B | 926M | 1.1B | 734M | 712M | 786M | -347M | 166M | 30M | 930M | 860M | 635M | 635M |
| CapEx | 714M | 726M | 524M | 731M | 705M | 702M | 392M | 694M | 685M | 420M | 447M | 470M | 470M |
| Maint. CapEx | 564M | 592M | 593M | 559M | 578M | 557M | 507M | 504M | 540M | 522M | 500M | 496M | 496M |
| Growth CapEx | 150M | 134M | 0 | 172M | 127M | 145M | 0 | 190M | 145M | 0 | 0 | 0 | 0 |
| D&A | 564M | 592M | 593M | 559M | 578M | 557M | 507M | 504M | 540M | 522M | 500M | 496M | 496M |
| CapEx/OCF | 33.5% | 45.5% | 30.5% | 53.0% | 51.0% | 49.8% | 165.4% | 85.8% | 112.9% | 27.4% | 30.1% | N/A | 36.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 383M | 377M | 367M | 361M | 373M | 364M | 0 | 226M | 220M | 222M | 225M | 247M | 247M |
| Dividend Yield | 3.1% | 4.0% | 5.3% | 4.5% | 4.3% | 6.2% | N/A | 2.8% | 5.9% | 4.9% | 2.7% | N/A | 3.4% |
| Share Buybacks | 1.2B | 1.0B | 0 | 315M | 398M | 200M | 0 | 201M | 123M | 0 | 75M | 155M | 155M |
| Buyback Yield | 9.4% | 12.8% | N/A | 3.3% | 5.2% | 4.5% | N/A | 4.3% | 2.9% | N/A | 0.9% | 0.0% | 2.1% |
| Stock-Based Comp | 100M | 76M | 76M | 87M | 91M | 68M | 77M | 139M | 37M | 80M | 126M | 162M | 162M |
| Debt Repayment | 21M | 21M | 21M | 0 | 0 | 0 | 1.3B | 2.5B | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -250M | 157M | -701M | -534M | -114M | -399M | -182M | 607M | 617M | -385M | -1.1B | -1.5B | -1.1B |
| Cash & Equiv. | 1.5B | 1.4B | 1.8B | 1.8B | 1.1B | 1.4B | 2.0B | 877M | 1.2B | 1.9B | 2.3B | 2.6B | 2.6B |
| Long-Term Debt | 1.3B | 1.3B | 1.2B | 1.2B | 1.2B | 1.2B | 2.2B | 1.5B | 1.5B | 1.5B | 1.5B | 1.5B | 1.5B |
| Debt/Equity | 0.45 | 0.68 | 0.46 | 0.40 | 0.35 | 0.38 | 0.85 | 0.55 | 0.82 | 0.57 | 0.46 | 0.39 | 0.39 |
| Interest Coverage | 27.8 | 25.8 | 15.9 | 20.0 | 18.7 | 7.6 | -4.5 | 4.9 | -0.8 | 6.2 | 12.8 | 12.0 | 12.0 |
| Equity | 3.0B | 2.5B | 2.9B | 3.1B | 3.6B | 3.3B | 2.6B | 2.7B | 2.2B | 2.6B | 3.3B | 3.8B | 3.8B |
| Total Assets | 7.7B | 7.5B | 7.6B | 8.0B | 8.0B | 13.7B | 13.8B | 12.8B | 11.4B | 11.0B | 11.9B | 12.6B | 12.6B |
| Total Liabilities | 4.7B | 4.9B | 4.7B | 4.8B | 4.5B | 10.4B | 11.2B | 10.0B | 9.2B | 8.4B | 8.6B | 8.8B | 8.8B |
| Intangibles | 1.0M | 1.0M | N/A | N/A | N/A | N/A | 0 | 36M | 27M | 18M | 10M | 4.0M | 4.0M |
| Retained Earnings | 2.8B | 2.4B | 2.7B | 3.1B | 3.5B | 3.3B | 2.5B | 2.6B | 2.1B | 2.4B | 3.0B | 3.6B | 3.6B |
| Working Capital | 2.1B | 1.4B | 1.9B | 2.1B | 2.1B | 1.3B | 2.1B | 1.1B | 1.4B | 1.3B | 1.9B | 2.5B | 2.5B |
| Current Assets | 4.3B | 4.0B | 4.3B | 4.6B | 4.3B | 4.5B | 6.0B | 5.2B | 4.6B | 4.4B | 5.2B | 5.8B | 5.8B |
| Current Liabilities | 2.2B | 2.5B | 2.5B | 2.5B | 2.2B | 3.2B | 3.9B | 4.1B | 3.3B | 3.1B | 3.3B | 3.3B | 3.3B |
| Per Share Data | |||||||||||||
| EPS | 2.87 | 2.23 | 1.69 | 2.14 | 2.59 | 0.93 | -1.78 | 0.67 | -0.55 | 1.34 | 2.20 | 2.13 | 2.13 |
| Owner EPS | 3.33 | 2.24 | 2.63 | 1.85 | 1.84 | 2.08 | -0.93 | 0.43 | 0.08 | 2.48 | 2.24 | 1.66 | 1.66 |
| Book Value | 6.78 | 6.17 | 7.26 | 7.93 | 9.17 | 8.79 | 7.00 | 7.12 | 6.08 | 6.93 | 8.51 | 9.92 | 9.92 |
| Cash Flow/Share | 4.84 | 3.86 | 4.30 | 3.48 | 3.57 | 3.74 | 0.63 | 2.12 | 1.65 | 4.09 | 3.87 | 3.38 | 3.42 |
| Dividends/Share | 0.88 | 0.92 | 0.92 | 0.92 | 0.97 | 0.97 | 0.24 | 0.59 | 0.60 | 0.60 | 0.60 | 0.66 | 0.64 |
| Shares Out. | 439.7M | 412.6M | 400.0M | 396.3M | 387.3M | 377.4M | 373.6M | 382.1M | 367.3M | 374.6M | 383.6M | 383.1M | 383.1M |
| Valuation | |||||||||||||
| P/E Ratio | 9.9 | 8.6 | 10.8 | 11.2 | 7.7 | 12.7 | N/A | 18.3 | N/A | 13.6 | 10.0 | N/A | 8.9 |
| P/FCF | 8.8 | 9.1 | 6.1 | 14.6 | 11.4 | 6.3 | N/A | 40.8 | N/A | 6.1 | 8.1 | N/A | 8.8 |
| EV/EBIT | 5.2 | 4.8 | 4.3 | 6.1 | 5.6 | 7.1 | N/A | 5.5 | N/A | 11.5 | 6.6 | N/A | 5.5 |
| Price/Book | 4.2 | 3.1 | 2.5 | 3.0 | 2.2 | 1.3 | 2.9 | 1.7 | 1.9 | 2.6 | 2.6 | N/A | 1.9 |
| Price/Sales | 0.7 | 0.6 | 0.4 | 0.5 | 0.5 | 0.4 | 0.3 | 0.5 | 0.2 | 0.3 | 0.6 | N/A | 0.5 |
| FCF Yield | 11.3% | 11.0% | 16.4% | 6.8% | 8.8% | 15.9% | -2.0% | 2.5% | -1.8% | 16.3% | 12.4% | N/A | 11.3% |
| Market Cap | 12.5B | 7.9B | 7.3B | 9.5B | 7.7B | 4.5B | 7.7B | 4.7B | 4.3B | 6.8B | 8.4B | 0 | 7.3B |
| Avg. Price | 27.69 | 22.74 | 17.41 | 20.15 | 22.19 | 15.57 | 12.92 | 21.46 | 10.14 | 12.00 | 21.94 | 0.00 | 19.01 |
| Year-End Price | 28.44 | 19.17 | 18.17 | 23.93 | 19.91 | 11.82 | 20.58 | 12.28 | 11.65 | 18.17 | 21.93 | 0.00 | 19.01 |
GAP INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
GAP INC trades at 8.6x trailing earnings, compared to its 15-year median P/E of 11.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 9.1x vs a median of 8.1x. The company's 5-year average ROIC is 21.5% with a gross margin of 39.0%. Total shareholder yield (dividends + buybacks) is 5.5%. At current prices, the estimated annualized return to fair value is +12.5%.
GAP INC (GAP) has a net profit margin of 5.3%. This is a modest margin.
GAP INC (GAP) generated $823 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
GAP INC (GAP) has a debt-to-equity ratio of 0.39. This indicates a conservatively financed balance sheet.
GAP INC (GAP) reported earnings per share (EPS) of $2.13 in its most recent fiscal year.
GAP INC (GAP) has a return on equity (ROE) of 23.1%. This indicates the company generates strong returns for shareholders.
GAP INC (GAP) has a 5-year average gross margin of 39.0%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for GAP INC (GAP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
GAP INC (GAP) has a book value per share of $9.92, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued comparable sales growth across the three largest brands (Old Navy, Gap, and Banana Republic) in fiscal 2026, with Gap brand anticipated to deliver high single-digit comps and Old Navy expected to post flat to up 1% comps as denim and active categories gain prominence in the second half. The company is executing targeted investments in growth accelerators including beauty rollout to the full store fleet by year-end, a first-of-its-kind partnership with Fanatics for sports licensing, and approximately 30 store remodels to bring roughly 25% of the North America specialty fleet into a new concept by year-end. Management is reserving approximately half of the anticipated $80 million in net tariff relief as a buffer against sustained fuel cost elevation and the remaining half for potential pricing flexibility should the promotional environment intensify, while maintaining a balanced capital allocation framework that prioritizes organic investments in stores, technology, and supply chain, alongside dividend growth and share repurchases.
Based on recent SEC filings and earnings calls, GAP INC (GAP) has provided the following forward guidance: Net sales growth: 1%-2% (FY2026); Operating margin: approximately 7.3%-7.5% (FY2026); Adjusted EPS: $2.20-$2.35 (FY2026); Capital expenditures: approximately $650 million (FY2026); Old Navy comparable sales: flat to up 1% (FY2026), plus 3 additional metrics.
Old Navy comparable sales (FY2026): “We now expect Old Navy comparable sales to be flat to up 1% for the full year”
Gap brand comparable sales (FY2026): “With building momentum at Gap brand, we now anticipate full-year comps in the high single digits”
Gross margin (FY2026): “we are maintaining our outlook for full-year gross margins to be flat to up slightly to the prior year”
Net tariff relief (FY2026): “we now expect approximately $80 million or 50 basis points of year-over-year net tariff relief to our gross and operating margin”