The Gap, Inc. (GAP)

Gap’s adjusted EPS topped consensus even as revenue trailed estimates, based on preliminary results for the second fiscal quarter of 2026 reported August 27, 2026. Revenue slipped 2.0% to about $3.7 billion (down from $3.725 billion a year ago), and in the consensus comparison it trailed expectations with revenue of $3.651 billion versus the $3.689 billion estimate (-1.0%). Across its portfolio of brands including Old Navy, Gap, Banana Republic, and Athleta, profitability was reflected in a gross margin of roughly 53% and an operating margin near 19%, alongside gross profit of about $1.9 billion and operating income of roughly $676 million. Net income rose 131.9% to about $501 million (up from $216 million a year ago). On the bottom line, adjusted EPS of $0.52 topped the $0.48 estimate (+8%). The company generated operating cash flow of around $337 million, repurchased about $200 million of stock, and paid roughly $62 million in dividends. For the next period, consensus calls for EPS of $0.77 on revenue of $3.992 billion.