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GAP Inc. 1Q 2026: Revenue $3.5B, EPS $0.9— 10-Q Summary

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GAP Inc. reported first-quarter 2026 results with revenue of $3.5B and diluted EPS of $0.9, driven by modest sales gains across most brands and improved earnings versus the prior-year quarter.

Financial Highlights

MetricCurrent quarterPrior year quarterYoY change
Revenue¹$3.5B$3.46B1%
Net income²$339M$193M75.6%
Diluted EPS³$0.9$0.5176.5%

¹ Reported as “Net sales”. ² Reported as “Net income”. ³ Reported as “Earnings per share - diluted”.

Business Highlights

  • Revenue growth: Net sales rose 1% year over year, supported by gains across most brands despite softness at Athleta.
  • Channel & omni capability: Continued investments in buy-online-pick-up, ship-from-store and mobile enhancements to support seamless shopping.
  • Brand performance: Gap and Old Navy drove positive comps (Gap +10% global, Old Navy +1%); Athleta comps declined.
  • Margins and operations: Gross margin faced pressure from tariffs (about a 2-point impact) and higher cost of goods; occupancy edged up with modest net store openings (net +3 company-operated).
  • Capital and execution: Free cash flow was positive and the company continued targeted store investments.

Original SEC Filing: GAP INC [ GAP ] - 10-Q - May. 29, 2026

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