Inferra AI / Company / GAP
Gap Inc.
GAP · Consumer Discretionary
Last earnings Aug 27, 2026
Key results
Adjusted gross marginquarter
41.4%
Adjusted gross margin excluding this benefit was 41.4% and increased 20 basis points versus last year.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Operating incomequarter
$676 million
Operating income was $676 million and operating margin was 18.5%.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Operating marginquarter
18.5%
Operating income was $676 million and operating margin was 18.5%.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Adjusted operating incomequarter
$259 million
Adjusted operating income was $259 million and adjusted operating margin was 7.1%, excluding the net IEEPA tariff recovery.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Adjusted operating marginquarter
7.1%
Adjusted operating income was $259 million and adjusted operating margin was 7.1%, excluding the net IEEPA tariff recovery.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Net incomequarter
$501 million
Net income was $501 million and diluted earnings per share were $1.38.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
EPSquarter
$1.38
Net income was $501 million and diluted earnings per share were $1.38.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Adjusted net incomequarter
$190 million
Adjusted net income was $190 million and adjusted diluted earnings per share were $0.52, excluding the net IEEPA tariff recovery and related interest income.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Adjusted EPSquarter
$0.52
Adjusted net income was $190 million and adjusted diluted earnings per share were $0.52, excluding the net IEEPA tariff recovery and related interest income.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Revenuequarter
33.5%
Adjusted gross margin Up slightly year-over-year Flat to up slightly year-over-year 40.8% Adjusted operating expense (% of net sales) About flat year-over-year About flat year-over-year 33.5% Adjusted operating margin About 7.4% to 7.6% About 7.3% to 7.5% 7.3% Adjusted interest
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Gross marginquarter
42.4%
Gross margin Up about 25 to 75 basis points 42.4% Operating expense (% of net sales) Slight leverage 33.9% Webcast and
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
AI analysis
Q3 2026 · reported Aug 27, 2026
Based on: Earnings release + parent 8-K + 10-Q — transcript not held
Headline figures
| Metric | Q3 2026 | Prior qtr | Year ago |
|---|---|---|---|
| Adjusted gross margin | 41.4% | — | — |
| Operating income | $676 million | — | — |
| Operating margin | 18.5% | — | — |
| Adjusted operating income | $259 million | — | — |
| Adjusted operating margin | 7.1% | — | — |
| Net income | $501 million | — | — |
| EPS | $1.38 | — | — |
| Adjusted net income | $190 million | — | — |
Guidance · company-stated
Direction: Raised
“Reports Second Quarter Fiscal 2026 Results Net sales down 2% compared to last year comparable sales down 1% Exceeded reported and adjusted operating margin expectations Returned $726 million to shareholders through share repurchases and dividends year-to-date Provides updated outlook for full year while raising earnings per share outlook Company separately announces Michael Francis as Old Navy's next President and CEO, succeeding Haio Barbeito SAN FRANCISCO August 27, 2026 Gap Inc.”
“Fiscal 2026 Outlook The Company's outlook reflects a balanced approach, factoring in visibility into the consumer and broader macroeconomic and geopolitical environment in the near term which is largely unchanged, while recognizing potential uncertainties moving forward around energy prices and U.”
Classified from the release's primary full-year outlook statement.
Margin
Capital allocation
Reports Second Quarter Fiscal 2026 Results Net sales down 2% compared to last year comparable sales down 1% Exceeded reported and adjusted operating margin expectations Returned $726 million to shareholders through share repurchases and dividends year-to-date Provides updated outlook for full year while raising earnings per share outlook Company separately announces Michael Francis as Old Navy's next President and CEO, succeeding Haio Barbeito SAN FRANCISCO August 27, 2026 Gap Inc.
Event summary
We have work to do at Old Navy, but we have a clear understanding of the factors that impacted performance and are taking targeted actions that are already driving improved results
Based on: Earnings release + parent 8-K + 10-Q — transcript not held
Guidance & outlook
Direction: Raised
Revenue: “Reports Second Quarter Fiscal 2026 Results Net sales down 2% compared to last year comparable sales down 1% Exceeded reported and adjusted operating margin expectations Returned $726 million to shareholders through share repurchases and dividends year-to-date Provides updated outlook for full year while raising earnings per share outlook Company separately announces Michael Francis as Old Navy's next President and CEO, succeeding Haio Barbeito SAN FRANCISCO August 27, 2026 Gap Inc.”
Revenue — Raised (“raising”)
“Reports Second Quarter Fiscal 2026 Results Net sales down 2% compared to last year comparable sales down 1% Exceeded reported and adjusted operating margin expectations Returned $726 million to shareholders through share repurchases and dividends year-to-date Provides updated outlook for full year while raising earnings per share outlook Company separately announces Michael Francis as Old Navy's next President and CEO, succeeding Haio Barbeito SAN FRANCISCO August 27, 2026 Gap Inc.”
Company outlook — Reiterated (“unchanged”)
“Fiscal 2026 Outlook The Company's outlook reflects a balanced approach, factoring in visibility into the consumer and broader macroeconomic and geopolitical environment in the near term which is largely unchanged, while recognizing potential uncertainties moving forward around energy prices and U.”
Classified from the release's primary full-year outlook statement.
Capital allocation
Reports Second Quarter Fiscal 2026 Results Net sales down 2% compared to last year comparable sales down 1% Exceeded reported and adjusted operating margin expectations Returned $726 million to shareholders through share repurchases and dividends year-to-date Provides updated outlook for full year while raising earnings per share outlook Company separately announces Michael Francis as Old Navy's next President and CEO, succeeding Haio Barbeito SAN FRANCISCO August 27, 2026 Gap Inc.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Shareholder Returns Returned $262 million of cash to shareholders in the form of share repurchases and dividends during the second quarter of fiscal 2026.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Share Repurchases In the second quarter, the Company completed its previously announced $200 million accelerated share repurchase program ( ASR ).
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Following the initial delivery of 6.9 million shares in the first quarter, the Company received an additional 1.4 million shares in May, resulting in aggregate repurchases under the program of 8.3 million shares.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
In addition to the ASR, repurchased 9.3 million shares in the open market for $200 million during the second quarter.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
The Company has $399 million remaining under its existing share repurchase authorization.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Strategy & priorities
We remain focused on disciplined execution and performing while we transform in order to win in the second half, Dickson continued.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Adjusted for the net IEEPA tariff recovery, merchandise margin increased 80 basis points including the benefit from tariff mitigation strategies with the underlying expansion primarily driven by strength at the Gap brand, partially offset by higher promotional activity at Old Navy.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Comparable sales were up 10%, with the brand's focus on big ideas and culturally relevant storytelling continuing to drive strong performance in destination categories including denim, fleece, and kids and baby.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Athleta remains focused on disciplined execution to rebuild the brand profitably.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
(b) Primarily consists of net sales from revenue-generating strategic initiatives.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Risks & headwinds
Gross margin of 52.8% increased 1,160 basis points versus last year on a reported basis including 1,140 1 basis points of net benefit related to the expected recovery of tariffs imposed under the International Emergency Economic Powers Act ( IEEPA ) (the net 1 Represents the impact of IEEPA tariff refunds of approximately $512 million, partially offset by a commitment of appreciation of approximately $95 million for certain vendors.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Adjusted for the net IEEPA tariff recovery, merchandise margin increased 80 basis points including the benefit from tariff mitigation strategies with the underlying expansion primarily driven by strength at the Gap brand, partially offset by higher promotional activity at Old Navy.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Adjusted operating income was $259 million and adjusted operating margin was 7.1%, excluding the net IEEPA tariff recovery.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
The effective tax rate was 26.3% and adjusted effective tax rate was 26.4%, which excludes the tax impact of the net IEEPA tariff recovery and related interest income.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Adjusted net income was $190 million and adjusted diluted earnings per share were $0.52, excluding the net IEEPA tariff recovery and related interest income.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Tariff Update In the second quarter, the Company recorded a $417 million adjustment to cost of goods sold related to the net IEEPA tariff recovery.
SEC original ↗Gap Inc. — Earnings release (8-K exhibit)EX-99Aug 27, 2026
Competitors
Competitors & peers
Same GICS sector — classification peers, not declared competitors
Filings
32 documents- Q2 2026
- 8-KGAP
Sep 15, 2026
- 10-QGAP
Aug 28, 2026
- 8-KGAP
Aug 27, 2026
- 8-KGAP
Jul 21, 2026
- Q1 2026
- 10-QGAP
May 29, 2026
- 8-KGAP
May 28, 2026
- 8-KGAP
May 15, 2026
- Q4 2025
- 10-KGAP
Mar 17, 2026
- 8-KGAP
Mar 12, 2026
- 8-KGAP
Mar 5, 2026
- Q3 2025
- 10-QGAP
Nov 25, 2025
- 8-KGAP
Nov 20, 2025
- Q2 2025
- 8-KGAP
Sep 15, 2025
- EX-99GAP
Sep 15, 2025
- 10-QGAP
Aug 29, 2025
- 8-KGAP
Aug 28, 2025
- 8-KGAP
Jul 29, 2025
- EX-99GAP
Jul 29, 2025
- Q1 2025
- 10-QGAP
May 30, 2025
- 8-KGAP
May 29, 2025
- 8-KGAP
May 23, 2025
- Q4 2024
- 10-KGAP
Mar 18, 2025
- 8-KGAP
Mar 11, 2025
- 8-KGAP
Mar 6, 2025
- Q3 2024
- 10-QGAP
Nov 26, 2024
- 8-KGAP
Nov 21, 2024
- 8-KGAP
Oct 11, 2024
- Q2 2024
- 10-QGAP
Aug 30, 2024
- 8-KGAP
Aug 29, 2024
- Q1 2024
- 8-KGAP
Jun 28, 2024
- 10-QGAP
May 31, 2024
- 8-KGAP
May 30, 2024
Earnings releases
12 documents- Q2 2026
- EX-99GAP
Sep 15, 2026
- EX-99GAP
Aug 27, 2026
- EX-99GAP
Aug 27, 2026
- Q1 2026
- EX-99GAP
May 28, 2026
- Q4 2025
- EX-99GAP
Mar 5, 2026
- Q3 2025
- EX-99GAP
Nov 20, 2025
- Q2 2025
- EX-99GAP
Aug 28, 2025
- Q1 2025
- EX-99GAP
May 29, 2025
- Q4 2024
- EX-99GAP
Mar 6, 2025
- Q3 2024
- EX-99GAP
Nov 21, 2024
- Q2 2024
- EX-99GAP
Aug 29, 2024
- Q1 2024
- EX-99GAP
May 30, 2024
Presentations
0 documentsNo presentations for Gap Inc. are held in this edition of the library.
Transcripts
0 documentsNo transcripts for Gap Inc. are held in this edition of the library.
See also the earnings calendar for every tracked company’s next earnings date.