Gap Inc (NYSE:GAP) on Thursday reported better-than-expected second-quarter earnings and raised their FY26 EPS guidance above estimates.
Revenue came in at $3.65 billion, versus estimates of $3.69 billion. Adjusted EPS came in at 52 cents, versus estimates of 48 cents.
Gap sees third-quarter revenue of approximately $3.96 billion to $4 billion versus estimates of $3.98 billion. The company also guided for full-year revenue of $15.55 billion to $15.63 billion versus estimates of $15.53 billion.
Gap raised its full-year adjusted earnings guidance from a range of $2.30 to $2.40 per share to a new range of $2.35 to $2.45 per share versus estimates of $2.34 per share.
"While top-line results in the second quarter were modestly below expectations, continued operational and financial rigor contributed to gross margin strength resulting in the company exceeding profit expectations," said Richard Dickson, president and CEO of Gap.
Gap shares surged 14.3% to trade at $23.76 on Friday.
These analysts made changes to their price targets on Gap following earnings announcement.
- BTIG analyst Robert Drbul maintained the stock with a Buy and raised the price target from $26 to $27.
- B of A Securities analyst Lorraine Hutchinson maintained the stock with a Neutral and raised the price target from $26 to $27.
Considering buying GAP stock? Here’s what analysts think:
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