EarningsQ2 2026 Earnings Report
MX:GAP1 Q2 2026 EPS Results
Actual EPS$8.83
Consensus EPS$8.17
Beat/MissBeat by +$0.66
One Year Ago EPS$9.68
MX:GAP1 Q2 2026 Revenue Results
Actual Revenue$62.00B
Expected Revenue$62.66B
Beat/MissMissed by -$653.62M
YoY Revenue Growth-1.99%
Earnings Announcement Details
QuarterQ2 2026
Date08/27/2026
TimeAfter Close
Conference CallThursday, August 27, 2026
MX:GAP1 Upcoming Earnings
Gap Inc's next earnings date is estimated for November 19, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:GAP1 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a cautiously optimistic tone: strong operational and margin performance (led by Gap and Banana Republic), disciplined capital allocation and an improved full-year EPS and margin outlook are offset by notable top-line weakness at Old Navy and Athleta, a modest overall revenue contraction in the quarter and some expense/leverage pressures. Management outlined concrete corrective actions for underperforming brands and reported early signs of improvement at Old Navy, supporting confidence in the second half.Company Guidance
Gap Brand Momentum
Gap delivered another excellent quarter with comparable sales up 10% (11th consecutive quarter of positive comps) and net sales up 9%. Destination categories (denim, fleece, kids & baby) drove growth, market share gains continued, customer file expansion and lower discounting supported higher AURs, and store remodel program on track (~35 remodels this year, ~1/4 of North America specialty fleet by year-end).
Improved Gross Margin and Raised Full-Year Profitability Outlook
Adjusted gross margin expanded 20 basis points year-over-year to 41.4% (merchandise margin expanded 80 bps). Company raised full-year adjusted operating margin outlook to 7.4%–7.6% (vs 7.3% prior year) and increased adjusted EPS guidance to $2.35–$2.45 (up 10%–15% vs prior year).
Banana Republic Consistent Progress
Banana Republic posted its fifth consecutive quarter of positive comps with comparable sales up 3% and net sales up 1%, broad-based strength across men's and women's categories and improved in-store spend at upgraded locations.
Capital Allocation and Share Repurchases
Returned meaningful cash to shareholders: repurchased over $600 million year-to-date (26 million shares) including $200 million in the quarter with ~$400 million remaining authorization; paid $62 million in dividends in Q2 and Board approved Q3 dividend of $0.175 per share. Ended quarter with $2.5 billion in cash and short-term investments.
Inventory Discipline and Cash Flow
Quarter-end inventory at cost was flat year-over-year (units up 4% driven by in-transit inventory). Year-to-date net cash from operations $550 million and year-to-date free cash flow $261 million. Capital expenditures Q2 $154 million, expected full-year capex ~ $650 million to support stores, remodels and tech.
Old Navy Early Signs of Recovery and Strategic Initiatives
Management took targeted actions for Old Navy (sharpened fall assortment, rewired marketing). August trends show improvement; new initiatives launching include Old Navy Sport (~40 shop-in-shops), Old Navy Beauty Co nationwide, Fanatics licensed assortment, high-impact Cardi B campaign and MrBeast back-to-school content. Planned leadership transition announced with Michael Francis named Brand President/CEO effective Nov 2.
Product and Growth Accelerators
Company expanding into beauty and accessories (Gap fragrance relaunch with encouraging early response; Gap bags launching with Fashion Week; Old Navy Beauty Co nationwide). Management highlighted long-term investments in Fashiontainment and technology platforms to deepen customer engagement.
MX:GAP1 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed