Gap Inc. Reports First Quarter Fiscal 2026 Results, Raises Full Year Earnings Per Share Outlook
Gap Inc. reported Q1 fiscal 2026 net sales of $3.5 billion, up 1% year-over-year, with comparable sales rising 2% for the ninth consecutive quarter. The Gap brand delivered a standout performance with 10% comparable sales growth, offsetting declines at Athleta (-11%) and modest gains at Old Navy (1%) and Banana Republic (2%). GAAP diluted EPS was $0.90, heavily influenced by a $313 million legal settlement gain; adjusted diluted EPS was $0.38.
Key figures
- Eps
- 0.9
- Revenue
- 3497000000
- Guidance
- FY26 diluted EPS $2.83-$2.93 (GAAP); Adjusted diluted EPS $2.30-$2.40
- Revenue Yoy
- 1%
- Capex
- 135000000
- Inventory
- 2100000000
- Gross margin
- 40.5%
- Dividends paid
- 63000000
- Free cash flow
- 78000000
- Operating income
- 445000000
- Operating margin
- 12.7%
- Share repurchases
- 401000000
- Charitable donation
- 50000000
- Cash and investments
- 2600000000
- Legal settlement gain
- 313000000
- Comparable sales growth
- 2%
- Adjusted operating income
- 182000000
- Adjusted operating margin
- 5.2%
AI analysis
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