NYSE$GAP
Gap, Inc. · Q1 2026 earnings
Q1 2026 earnings · · After market close · Investor relations
Briefing
Gap Inc. reported Q1 fiscal 2026 net sales of $3.5B with comparable sales up 2%, and diluted EPS of $0.90.
For the first quarter ended May 2, 2026, Gap Inc. generated net sales of $3.5 billion (up 1% year over year) with comparable sales up 2% — the ninth consecutive positive comp quarter. Gross margin was 40.5% (down 130 bps, above outlook) with an estimated 200 bps net tariff headwind in merchandise margin. Reported net income was $339 million and diluted EPS was $0.90; adjusted diluted EPS was $0.38 excluding a net legal-settlement gain and charitable donation. The company returned $464 million via repurchases and dividends and raised full-year adjusted diluted EPS outlook to $2.30–$2.40.
- Net sales $3.5B (+1% YoY); comparable sales +2% (9th straight positive quarter); Gap brand comp +10%.
- Gross margin 40.5% (-130 bps YoY) but above guidance; ~200 bps estimated net tariff hit in merchandise margin.
- Reported EPS $0.90 includes $313M legal settlement gain net of $50M donation; adjusted EPS $0.38.
- Returned $464M to shareholders; raised FY26 adjusted diluted EPS outlook to $2.30–$2.40 (from $2.20–$2.35).
Headline financials
Revenue & EPS history
Gap · Revenue · Quarterly
$3.5B
Revenue by segment
Gap · $4.04B total across 5 segments · Q3 2023
- Old Navy Global$2.14B+1.5%52.9%
- Gap Global$1.04B+0.2%25.8%
- Banana Republic Global$517M+7.9%12.8%
- Athleta Global$340M+6.3%8.4%
- Other$4M—0.1%
Forward guidance
Gap raised fiscal 2026 adjusted diluted EPS guidance to approximately $2.30–$2.40 (from $2.20–$2.35) while keeping net sales growth at 1–2%. Outlook assumes Section 122 tariff relief of ~$80 million to gross profit (concentrated in Q2–Q3) with half earmarked for fuel-cost risk and half for promotional flexibility. Reported full-year diluted EPS is expected at approximately $2.83–$2.93 including non-recurring items. Q2 net sales are guided flat to down 1% with gross margin flat to down 50 bps.
Tailwinds
- Full-year adjusted EPS outlook raised to $2.30–$2.40.
- Gap brand double-digit comp — strongest performance in over two decades.
- ~$80M expected net tariff relief under updated Section 122 assumptions.
- $464M returned in Q1 via ASR, open-market buybacks, and dividends.
Headwinds
- Merchandise margin down 100 bps before tariff math; Athleta comp -11%.
- Online sales -2% YoY; store sales +3%.
- Q2 sales guided flat to down 1% with operating expense deleverage.
- Outlook reserves full tariff benefit for macro/promotional uncertainty.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2026
+1.2%
Avg return
Earnings day
+1.7%
Avg return
5 days after
+0.5%
Avg return
30 days after
54%
37 / 68 earnings
Positive
+33.8%
Q1 2024
Best reaction
-25.5%
Q3 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -15.1% | -15.2% | — | |
| Q4 2025 | -14.5% | -13.5% | -9.5% | |
| Q3 2025 | +7.4% | +19.4% | +21.5% | |
| Q2 2025 | +1.7% | +4.2% | +1.4% | |
| Q1 2025 | -19.8% | -24.8% | -21.6% | |
| Q4 2024 | +18.6% | +8.0% | -1.8% | |
| Q3 2024 | +18.3% | +17.1% | +16.9% | |
| Q2 2024 | +0.0% | +1.8% | -4.5% | |
| Q1 2024 | +33.8% | +24.1% | +10.3% | |
| Q4 2023 | +9.8% | +19.2% | +27.2% | |
| Q3 2023 | +26.9% | +34.3% | +51.5% | |
| Q2 2023 | +5.9% | +15.0% | +3.0% | |
| Q1 2023 | +9.6% | +10.5% | +14.2% | |
| Q4 2022 | -9.1% | -16.6% | -21.8% | |
| Q3 2022 | +13.5% | +21.8% | +7.6% | |
| Q2 2022 | -0.9% | -2.4% | -14.5% | |
| Q1 2022 | +8.9% | +3.6% | -11.2% | |
| Q4 2021 | -2.2% | -0.8% | -7.2% | |
| Q3 2021 | -25.5% | -27.6% | -27.8% | |
| Q2 2021 | -3.5% | -2.7% | -13.0% | |
| Q1 2021 | -1.7% | -2.6% | -0.1% | |
| Q4 2020 | +6.1% | +12.6% | +16.3% | |
| Q3 2020 | -17.1% | -16.5% | -21.6% | |
| Q2 2020 | +3.0% | +4.3% | -4.3% | |
| Q1 2020 | +3.0% | +4.4% | +2.8% | |
| Q4 2019 | -1.5% | -23.9% | -17.1% | |
| Q3 2019 | +4.1% | +4.5% | +8.0% | |
| Q2 2019 | -0.2% | -8.1% | +1.4% | |
| Q1 2019 | -10.3% | -9.1% | -13.7% | |
| Q4 2018 | +16.4% | +7.3% | +3.2% | |
| Q3 2018 | +1.5% | +2.2% | -1.5% | |
| Q2 2018 | -7.9% | -4.7% | -13.7% | |
| Q1 2018 | -12.0% | -11.5% | +4.4% | |
| Q4 2017 | +8.2% | +9.5% | -1.2% | |
| Q3 2017 | +9.3% | +10.4% | +24.8% | |
| Q2 2017 | +0.4% | +1.7% | +24.0% | |
| Q1 2017 | -5.4% | -5.2% | -2.8% | |
| Q4 2016 | -0.7% | -0.2% | -6.4% | |
| Q3 2016 | +2.8% | +12.8% | +2.9% | |
| Q2 2016 | +5.6% | +6.0% | -8.2% | |
| Q1 2016 | +5.4% | — | — | |
| Q4 2015 | -0.2% | — | — | |
| Q3 2015 | +6.3% | — | — | |
| Q2 2015 | -5.6% | — | — | |
| Q1 2015 | -1.7% | — | — | |
| Q4 2014 | +3.3% | — | — | |
| Q3 2014 | -2.7% | — | — | |
| Q2 2014 | +5.4% | — | — | |
| Q1 2014 | +1.4% | — | — | |
| Q4 2013 | -0.4% | — | — | |
| Q3 2013 | +0.2% | — | — | |
| Q1 2013 | -1.0% | — | — | |
| Q4 2012 | +4.2% | — | — | |
| Q3 2012 | -0.1% | — | — | |
| Q2 2012 | +4.0% | — | — | |
| Q1 2012 | -5.1% | — | — | |
| Q4 2011 | -1.2% | — | — | |
| Q3 2011 | +0.5% | — | — | |
| Q2 2011 | +0.8% | — | — | |
| Q1 2010 | +2.3% | — | — | |
| Q1 2011 | +3.9% | — | — | |
| Q4 2010 | -0.7% | — | — | |
| Q4 2008 | -0.7% | — | — | |
| Q3 2010 | -3.3% | — | — | |
| Q3 2009 | -3.3% | — | — | |
| Q2 2010 | +0.3% | — | — | |
| Q2 2009 | +0.3% | — | — | |
| Q4 2009 | +0.3% | — | — |
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