Gap Q2 EPS $1.38 Beats, Raises FY26 EPS Outlook, Names New Old Navy CEO
GAP sits 25% above its 52-week low of $18.11 on elevated volume (2.5× avg).
Summary
Gap beat Q2 estimates with EPS of $1.38, raised full-year EPS guidance, and announced Michael Francis will replace Haio Barbeito as Old Navy CEO effective November 2, 2026.
Key Events · Earnings and Guidance · GAP
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Q2 EPS Beats at $1.38
Reported diluted EPS of $1.38 on net income of $501 million, driven by a $417 million net IEEPA tariff recovery. Adjusted diluted EPS was $0.52, excluding the one-time benefit.
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FY26 EPS Outlook Raised
Full-year adjusted diluted EPS guidance raised to $2.35–$2.45 from $2.30–$2.40; reported EPS expected at $3.77–$3.87. Net sales growth outlook trimmed to 1%–1.5% from 1%–2%.
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Old Navy Leadership Change
Michael Francis appointed President and CEO of Old Navy effective November 2, 2026, succeeding Haio Barbeito, who will remain as an advisor through January 30, 2027. Old Navy comparable sales fell 4% in Q2.
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Shareholder Returns Continue
Returned $262 million in Q2 via buybacks and dividends; completed $200 million ASR and repurchased 9.3 million shares for $200 million in the open market. $399 million remains under the buyback authorization.
Analysis · GAP · Trade & Services
Gap delivered a strong Q2 headline beat at $1.38 per share, but the real story is the quality of earnings: $0.86 of that came from a one-time IEEPA tariff refund recovery, leaving adjusted EPS at $0.52. Management raised its full-year adjusted EPS outlook to $2.35–$2.45 and reported EPS to $3.77–$3.87, while trimming the net sales growth range to 1%–1.5%. The simultaneous leadership change at Old Navy — its largest brand, where comparable sales fell 4% — signals urgency to fix the business. The company also returned $262 million to shareholders in Q2 and has $399 million remaining on its buyback authorization.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 35.8% of the 1045 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, GAP was trading at $22.57 on NYSE in the Trade & Services sector, with a market capitalization of approximately $7.5B. The 52-week trading range was $18.11 to $29.36. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.