A Business at a Glance
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Item 1. Business. The Gap, Inc. (Gap Inc., the "Company," "we," and "our") is a house of iconic American brands offering apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Gap Inc. is an omni-channel retailer, with sales to customers both in stores and online, through Company-operated and franchise stores, websites, and third-party arrangements. As of January 31, 2026, we had Company-operated stores in the United States, Canada, Japan, and Taiwan. We also have franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta throughout Asia, Europe, Latin America, the Middle East, and Africa. Under these agreements, third parties operate, or will operate, stores and websites that sell apparel and related products under our brand names. We also have licensing agreements with licensees to sell products using our brand names.
| 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 | - | - | 35.1% | 15.4% | 19.6% | 20.8% |
| Gross Margin | 40.8% | 40.8% | 41.3% | 38.8% | 34.3% | 39.8% |
| Debt/Equity | 0.00 | - | 0.39 | 0.46 | 0.57 | 0.82 |
| Dividends/Share | $0.64 | $0.66 | $0.60 | $0.60 | $0.60 | $0.36 |
| Operating Income | 1.1B | 1.1B | 1.1B | 560M | 560M | 810M |
| Operating Margin | 7.3% | 7.3% | 7.4% | 3.8% | 3.6% | 4.9% |
| ROE | 0.0% | - | 23.9% | 17.1% | -8.4% | 10.3% |
| Shares Outstanding | 383M | 383M | 384M | 375M | 367M | 382M |
GAP INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
GAP INC trades at 11.2x 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 11.9x vs a median of 9.8x. The company's 5-year average ROIC is 22.7% with a gross margin of 39.0%. Total shareholder yield (dividends + buybacks) is 4.2%. At current prices, the estimated annualized return to fair value is +12.0%.
GAP INC (GAP) has a current P/E ratio of 11.2, 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 22.7%. This indicates strong capital allocation and a potential competitive advantage.
GAP INC (GAP) has a market capitalization of $9.5B. It is classified as a mid-cap stock.
Yes, GAP INC (GAP) pays a dividend with a trailing twelve-month yield of 2.59%. The company also returns capital through share buybacks, with a buyback yield of 1.62%.
Based on historical P/E analysis, GAP INC (GAP) appears fair. The current P/E of 11.2 is 0% above its historical median of 11.2. The estimated fair value CAGR (P/E method) is -3.1%.
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 (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) reported earnings per share (EPS) of $2.13 in its most recent fiscal year.
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.