Gap Surges 14% Premarket as Q2 EPS Beats, FY26 Guidance Raised
GAP sits 32% above its 52-week low of $18.11.
Summary
Gap shares jumped 13.85% to $23.67 premarket Friday after Q2 adjusted EPS of $0.52 beat the $0.48 consensus, though sales of $3.651B missed the $3.690B estimate. The company raised FY26 adjusted EPS guidance to $2.35-$2.45 from $2.30-$2.40 and narrowed sales outlook to $15.554B-$15.631B, both above estimates. Gap brand delivered 10% comp growth for its 11th straight positive quarter, while Old Navy comps fell 4% and Athleta sales dropped 12%. The company also announced Michael Francis as Old Navy CEO effective Nov. 2, following the prior day's report. Q3 guidance calls for sales of $3.958B-$3.998B vs $3.981B estimate, with comps flat to down 1%. Capital returns remain aggressive: $200M buyback in Q2, $600M YTD, and $400M remaining under authorization. Tariff mitigation is expected to add $15M in Q4 net relief, with potential $35M more if rates persist.
At the time of this announcement, GAP was trading at $23.94 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.6B. The 52-week trading range was $18.11 to $29.36. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.