# The Gap, Inc. (GAP)

> Source: Nexqual · https://nexqual.com/GAP · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, The Gap, Inc. (GAP), nexqual.com/GAP" · informational, not investment advice.

**Price:** USD 22.91 (+0.97% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 22.69 · day 22.35–23.03 · 52w 18.11–29.36 · market cap $8.05B · NYQ

## Key facts
- Last four reported quarters (through Aug 1, 2026): revenue $15.3B, net income $1.25B (8.1% margin), free cash flow $957M (SEC filings).
- Valuation: P/E 6.5x (avg 12.6x at the last 3 fiscal year-ends), EV/EBITDA 3.2x, net cash $992M.
- Insider open-market sales, last ~7 months: 7 Form 4 filings, $33.0M; 5 not under a Rule 10b5-1 plan ($32.2M); 2 by opportunistic insiders (0 outside 10b5-1 plans), 1 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Total return with dividends: 1Y +2.5% vs S&P 500 +14.9%; 5Y +24.2% vs S&P 500 +80.3%.
- Next earnings: 2026-11-19, EPS estimate USD 0.78, revenue estimate $4.01B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $16.7B | $15.6B | $14.9B | $15.1B | $15.4B | $15.3B |
| Gross profit | $6.64B | $5.36B | $5.78B | $6.23B | $6.27B | — |
| Operating income | $810M | -$69.0M | $560M | $1.11B | $1.11B | $1.68B |
| Net income | $256M | -$202M | $502M | $844M | $816M | $1.25B |
| EPS (diluted) | $0.67 | -$0.55 | $1.34 | $2.20 | $2.13 | — |
| Free cash flow | $115M | -$78.0M | $1.11B | $1.04B | $823M | $957M |
| Gross margin | 39.8% | 34.3% | 38.8% | 41.3% | 40.8% | — |
| Operating margin | 4.9% | -0.4% | 3.8% | 7.4% | 7.3% | 11.0% |
| Net margin | 1.5% | -1.3% | 3.4% | 5.6% | 5.3% | 8.1% |
| Revenue growth | +20.8% | -6.3% | -4.7% | +1.3% | +1.9% | — |
| Cash + short-term investments | $877M | — | $1.87B | $2.59B | $3.00B | — |
| Total debt | $1.48B | $1.49B | $1.49B | $1.49B | $1.49B | — |
Fiscal years end Jan. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Aug 1, 2026)
P/E 6.5x · P/S 0.5x · EV/EBITDA 3.2x · EV/Sales 0.5x · P/FCF 8.4x · P/B 2.0x · FCF yield 11.89% · Earnings yield 15.50% · Dividend yield (paid, TTM) 3.09% · Buyback yield (TTM) 7.51% · Net cash $992M · EV $7.06B
P/E at fiscal year-ends: Jan 2026 13.2x, Feb 2025 10.3x, Feb 2024 14.2x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
2 of 7 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-10-05…2026-10-06 | Fisher William Sydney | Director | 933,656 | $22.1M | 2.7% | No | Too little history (no open-market trades in 2023) |
| 2026-10-06 | Gruber Julie | Chief Legal&Compliance Officer | 27,538 | $649K | 47.1% | Yes (adopted July 7, 2026) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-09-30 | Fisher William Sydney | Director | 66,344 | $1.5M | 0.2% | No | Too little history (no open-market trades in 2023) |
| 2026-04-17 | Gruber Julie | Chief Legal&Compliance Officer | 5,302 | $143K | 8.3% | Yes (adopted July 11, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-04-10 | Chan Eric Kayen | Chief Business & Strat Officer | 13,377 | $350K | 37.8% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-04-08 | Fisher John J |  | 300,000 | $7.6M | 0.8% | No | Routine (sold in Dec each year 2023–2025; this trade is outside those months) |
| 2026-04-06 | Thompson Amanda J | Chief People Officer | 25,000 | $628K | 22.5% | No | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | Wolfe Research | Initiated | Peer Perform |  |
| 2026-10-16 | Needham | Initiated | Hold |  |
| 2026-09-09 | BMO Capital | Initiated | Market Perform | $23 |
| 2026-08-31 | Goldman Sachs | Target raised | Buy | $25 → $27 |
| 2026-08-28 | Wells Fargo | Target raised | Equal-Weight | $22 → $23 |
| 2026-08-28 | UBS | Target raised | Buy | $40 → $42 |
| 2026-08-28 | Barclays | Target raised | Equal-Weight | $20 → $23 |
| 2026-08-28 | TD Cowen | Target raised | Buy | $23 → $27 |
| 2026-08-28 | Morgan Stanley | Target raised | Equal-Weight | $21 → $23 |
| 2026-08-28 | B of A Securities | Target raised | Neutral | $26 → $27 |
| 2026-08-28 | BTIG | Target raised | Buy | $26 → $27 |
| 2026-08-21 | Goldman Sachs | Target lowered | Buy | $28 → $25 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +2.5% | +24.2% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +2.5% | +4.4% |
| Volatility (annualized) | 46.6% | 54.4% |
| Max drawdown | -36.0% (Feb 2026→Jul 2026) | -66.1% (Nov 2021→May 2023) |

## Peers (Apparel Retail)
URBN (Urban Outfitters, Inc.) USD 88.29 +1.53% · VSXY (Victorias Secret & Co.) USD 88.42 -0.82% · ANF (Abercrombie & Fitch Company) USD 161.49 +1.16% · LULU (lululemon athletica inc.) USD 104.06 +7.80% · BURL (Burlington Stores, Inc.) USD 252.62 +1.81% · BOOT (Boot Barn Holdings, Inc.) USD 119.76 +3.16%

## More
Full page: https://nexqual.com/GAP · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in GAP's own 10-K filed 2026-03-17 (https://www.sec.gov/Archives/edgar/data/39911/000162828026018573/gap-20260131.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Baozun Inc. (BZUN) | "On November 7, 2022, we signed agreements to transition our Gap China and Gap Taiwan operations to a third party, Baozun Inc., to operate Gap China and Gap Taiwan stores and the in-market website as a franchise partner, …" |

## Company outlook (8-K filed 2026-08-27)

- "The Company's updated full-year net sales outlook of up 1% to 1.5% now assumes Old Navy comparable sales of flat to down 1%, compared with the prior range of flat to up 1%, reflecting the brand's second-quarter performance."
- "On a reported basis, the Company now expects full year diluted earnings per share to be approximately $3.77 to $3.87."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-10-31) | $0.78 | $0.82 | -4.6% | $4.01B | 17 |
| Next quarter (ends 2027-01-31) | $0.71 | $0.65 | +9.7% | $4.37B | 17 |
| Current fiscal year (ends 2027-01-31) | $2.40 | $2.37 | +1.0% | $15.54B | 20 |
| Next fiscal year (ends 2028-01-31) | $2.62 | $2.61 | +0.4% | $16.00B | 21 |