At a glance
The Gap, Inc. is worth $7.73B, about 10 times its fiscal 2026 earnings. Revenue grew 1.9% to $15.37B in fiscal 2026, with 5.3% kept as profit; over 5 years it has grown 2.2% a year. It pays a 3.23% dividend yield, and returned $1.69B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned −6.9% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
Gap Inc. designs and sells clothing, accessories and personal care products for men, women and children under four brands. Old Navy, which opened its first store in 1994, is a value brand for North American shoppers with more than 1,200 company-operated stores. Gap, founded in San Francisco in 1969, sells casual basics plus lines such as GapKids, babyGap and GapFit. Banana Republic offers high-quality, crafted collections, and Athleta sells premium activewear for women and girls.
Gap sells through its own stores and websites, franchise partners and other third parties. As of January 31, 2026, it ran 2,474 company-operated stores in the US, Canada, Japan and Taiwan. Franchise partners ran about 1,000 more in about 35 countries, and licensees offer products under its brand names. Each brand also has store and co-branded credit cards from a third-party lender, and Gap shares in that revenue. Members of its US loyalty program, Encore, earn rewards across all four brands.
In the fiscal year ended January 31, 2026, revenue was $15.4 billion, up 1.9%, and net income was $816 million. Gap purchases merchandise from about 200 vendors. Factories in Vietnam and Indonesia supplied 27% and 21% of purchases by value. Sales peak in the year-end holiday season.
Price history
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GAP -6.9% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2027 (ended Aug 1, 2026), revenue was $3.65B, down 2% from a year earlier, and net income was $501.0M (+131.9%).
- For fiscal 2026, revenue was $15.37B (+1.9% year over year; +2.2% a year from FY2021 to FY2026) with a 5.3% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +2.2% watch |
|---|---|
| Operating margin | 7.3% watch |
| Free cash flow margin | 5.4% watch |
| Return on equity (FY2026) | 21.5% good |
| Return on assets (FY2026) | 6.5% watch |
| Net cash (cash minus debt) | $992.0M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $13.80B | $-665.0M | $-155.0M |
| FY2022 | $16.67B | $256.0M | $115.0M |
| FY2023 | $15.62B | $-202.0M | $-78.0M |
| FY2024 | $14.89B | $502.0M | $1.11B |
| FY2025 | $15.09B | $844.0M | $1.04B |
| FY2026 | $15.37B | $816.0M | $823.0M |
Valuation snapshot
| Market value | $7.73B |
|---|---|
| P/E ratio | 10.3 |
| Dividend yield | 3.23% |
Rank among 1514 US companies
Market value at each year end
The Gap’s market value went from $8.91B at the end of 2024 to $7.73B on Oct 28, 2026, down 13%; since the end of 2025 it is down 19%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $7.73B | -18.8% |
| 2025 | $9.52B | +6.8% |
| 2024 | $8.91B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| GAP price data to Oct 28, 2026 | -11.4% | -6.9% | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -11.4% |
| 2025 | +11.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 5 sales ($24.4M), 2 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 6, 2026 | William Sydney Fisher Director, 10% owner | sell | $11.9M |
| Oct 5, 2026 | William Sydney Fisher Director, 10% owner | sell | $10.1M |
| Sep 30, 2026 | William Sydney Fisher Director, 10% owner | sell | $1.5M |
| Oct 6, 2026 | Julie Gruber Chief Legal&Compliance Officer | sell (plan) | $649K |
| Apr 17, 2026 | Julie Gruber Chief Legal&Compliance Officer | sell (plan) | $143K |
Who owns it
Large shareholders (13G filings)
| Dimensional Fund Advisors LP | 5.5% | Sep 30, 2026 |
| Dodge & Cox | 1.5% | Jun 30, 2025 |
ETFs with the most weight in GAP
| VMAX Hartford US Value ETF | 1.39% |
| FXD First Trust Consumer Discretionary AlphaDEX Fund | 1.38% |
| FLOW Global X U.S. Cash Flow Kings 100 ETF | 0.99% |
| NIXT Research Affiliates Deletions ETF | 0.72% |
| IBUY Amplify Online Retail ETF | 0.6% |
| XMHQ Invesco S&P MidCap Quality ETF | 0.6% |
| AFMC First Trust Active Factor Mid Cap ETF | 0.46% |
| AUSF Global X Adaptive U.S. Factor ETF | 0.41% |
What could go wrong
- US tariffs have raised product costs. Higher US tariffs raised Gap's costs in the year ended January 31, 2026. The Supreme Court struck down some tariffs in February 2026, but temporary replacements followed. Refunds and future rates are uncertain.
- Heavy reliance on Vietnam and Indonesia. About 27% of purchases came from factories in Vietnam and 21% from Indonesia, and nearly all came from outside North America. Political trouble, disasters or trade limits there could raise costs or delay goods.
- Misjudged fashion trends lead to markdowns. Apparel tastes shift quickly. If Gap's brands misjudge styles or order too much, unsold inventory is cleared mainly through markdowns (price cuts), which squeezes profit margins. Stocking up before the holidays raises the stakes.
- Credit card income could shrink. Each brand offers store and co-branded credit cards through a third-party lender, and Gap shares in the revenue. Weaker card use or changes to the arrangement could reduce that income and cash flow.
- Sales and profits swing year to year. Comparable sales (sales at established stores and online) and margins fluctuate. Gap warns this could hurt its share price and credit ratings. It lost money in the fiscal years ended early 2021 and 2023.
- Shoppers cut back on clothes in downturns. Gap says purchases of discretionary items (wants rather than needs), such as its clothing, generally decline in recessions. Inflation, job losses, higher consumer debt and falling home values can all trim spending.
Recent events
- Executive or board change
- Quarterly results released; Executive or board change; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released
- Shareholder vote results
- Other company announcement
- Quarterly results released; Investor presentation or announcement
- Quarterly results released
For income and retirement investors
Gap pays a dividend, but its streak of increases is just one year. Dividends per share rose to $0.66 in the fiscal year ended January 31, 2026, after three years at $0.60. That payout took about 30% of both earnings and free cash flow (cash left after running and investing in the business). The yield was 3.23% as of October 28, 2026. Gap also spent $554 million on buybacks over five fiscal years through January 2026, and its share count fell 5.9% from November 2021 to August 2026.
Our price record for the shares covers only about 2.2 years, so it misses the 2008, 2020 and 2022 market slumps. In the year to October 28, 2026, the shares fell as much as 35.9% from a peak. Gap lost $665 million and paid no cash dividends in the fiscal year ended early 2021, which included the COVID crash. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Gap Inc. make money?
Gap makes money selling clothing, accessories and personal care products under its Old Navy, Gap, Banana Republic and Athleta brands. As of January 31, 2026, it sold through 2,474 company-operated stores, its websites, about 1,000 franchise stores run by partners, and licensing deals. It also shares in revenue from store and co-branded credit cards issued by a third-party lender. In the fiscal year ended January 31, 2026, revenue was $15.4 billion and net income was $816 million, a net margin of 5.3%.
Does Gap own Old Navy?
Yes. Old Navy is one of four brands owned by Gap Inc., alongside Gap, Banana Republic and Athleta. Old Navy opened its first store in 1994 in Colma, California. It is a value apparel brand for North American shoppers with more than 1,200 company-operated stores, including outlets, plus franchise locations around the world. Gap Inc. acquired Banana Republic in 1983 and Athleta in 2008.
Does Gap raise its dividend every year?
No. Gap's dividend per share rose to $0.66 in the fiscal year ended January 31, 2026. Before that it held at $0.60 for three years, so its streak of increases is one year. In the fiscal year ended early 2021, when it lost $665 million, Gap paid no cash dividends. The dividend took about 30% of earnings and free cash flow, and the yield was 3.23% as of October 28, 2026.
How do tariffs affect Gap?
Tariffs raise Gap's costs because substantially all of its merchandise comes from factories outside North America. Higher US tariffs increased its cost of goods sold in the fiscal year ended January 31, 2026. About 27% of purchases came from Vietnam and 21% from Indonesia. In February 2026, the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act, but new temporary tariffs followed under other legal authority. Gap says future trade policy and its ability to recover any refunds are uncertain.
How much debt does Gap have?
Gap had $1.49 billion of total debt as of August 1, 2026, against $2.49 billion in cash and investments. That left it with about $992 million more cash than debt. On July 21, 2026, Gap filed a notice of a major agreement and a new debt or financial obligation. Its annual report warns that debt could limit its ability to operate and expand, and that a weaker credit profile could restrict its access to capital markets.