Revenue growth remains stagnant at 1.0% for 2026Q1, while gross margins continue to fluctuate between 38.1% and 42.7% due to recurring seasonal discounting.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Sales/Revenue | 15.4B | 15.37B | 15.09B | 14.89B | 15.62B | 16.67B | 13.8B | 16.38B | 16.58B | 15.86B | 15.52B | 15.8B | 16.43B | 16.15B | 15.65B | 14.55B | 14.66B | 14.2B | 14.53B | 15.76B | 15.94B | 16.02B | 16.27B | 15.85B | 14.45B | 13.85B | 13.67B | 11.64B | 9.05B | 6.51B | 5.28B |
| Revenue Growth % | 1.58% | 1.86% | 1.32% | -4.66% | -6.32% | 20.8% | -15.77% | -1.19% | 4.57% | 2.18% | -1.78% | -3.88% | 1.78% | 3.18% | 7.57% | -0.78% | 3.29% | -2.26% | -7.85% | -1.13% | -0.5% | -1.5% | 2.6% | 9.68% | 4.38% | 1.28% | 17.52% | 28.5% | 39.13% | 23.15% | 20.23% |
| Cost of Goods Sold | 9.16B | 9.1B | 8.86B | 9.11B | 10.26B | 10.03B | 9.1B | 10.25B | 10.26B | 9.79B | 9.88B | 10.08B | 10.15B | 9.86B | 9.48B | 9.28B | 8.78B | 8.47B | 8.47B | 10.07B | 10.27B | 10.14B | 9.89B | 9.89B | 9.54B | 9.7B | 8.01B | 6.34B | 4.99B | 3.75B | 3.07B |
| COGS % of Revenue | - | 59.21% | 58.72% | 61.21% | 65.68% | 60.19% | 65.91% | 62.56% | 61.87% | 61.74% | 63.65% | 63.79% | 61.73% | 61.03% | 60.57% | 63.75% | 59.84% | 59.68% | 58.33% | 63.89% | 64.39% | 63.32% | 60.77% | 62.36% | 66.01% | 70.08% | 58.57% | 54.48% | 55.13% | 57.65% | 58.1% |
| Gross Profit | 6.24B | 6.27B | 6.23B | 5.78B | 5.36B | 6.64B | 4.71B | 6.13B | 6.32B | 6.07B | 5.64B | 5.72B | 6.29B | 6.29B | 6.17B | 5.27B | 5.89B | 5.72B | 5.72B | 5.69B | 5.66B | 5.87B | 6.38B | 5.97B | 4.91B | 4.14B | 5.66B | 5.3B | 4.06B | 2.76B | 2.21B |
| Gross Margin % | 40.5% | 40.79% | 41.28% | 38.79% | 34.32% | 39.81% | 34.09% | 37.44% | 38.13% | 38.26% | 36.35% | 36.21% | 38.27% | 38.97% | 39.43% | 36.25% | 40.16% | 40.32% | 39.41% | 36.11% | 35.48% | 36.66% | 39.23% | 37.64% | 33.99% | 29.92% | 41.43% | 45.52% | 44.87% | 42.35% | 41.9% |
| Gross Profit Growth % | - | 0.66% | 7.83% | 7.76% | -19.26% | 41.06% | -23.28% | -2.99% | 4.22% | 7.55% | -1.4% | -9.05% | -0.06% | 1.98% | 17.01% | -10.44% | 2.88% | 0% | 0.56% | 0.62% | -3.69% | -7.95% | 6.92% | 21.47% | 18.57% | -26.85% | 6.95% | 30.36% | 47.41% | 24.47% | 25.01% |
| Operating Expenses | 4.94B | 5.15B | 5.12B | 5.21B | 5.43B | 5.83B | 5.57B | 5.56B | 4.96B | 4.59B | 4.45B | 4.2B | 4.21B | 4.14B | 4.23B | 3.84B | 3.92B | 3.91B | 3.91B | 4.38B | 4.43B | 4.1B | 4.3B | 4.09B | 3.9B | 3.81B | 4.22B | 3.48B | 2.73B | 1.9B | 1.49B |
| OpEx % of Revenue | - | 33.54% | 33.91% | 35.03% | 34.76% | 34.96% | 40.34% | 33.93% | 29.92% | 28.93% | 28.67% | 26.56% | 25.59% | 25.66% | 27.02% | 26.37% | 26.74% | 27.53% | 26.91% | 27.77% | 27.8% | 25.58% | 26.41% | 25.79% | 26.99% | 27.48% | 30.86% | 29.91% | 30.15% | 29.27% | 28.1% |
| Selling, General & Admin | 0 | 0 | 5.07B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.4B | 1.64B | 1.27B |
| SG&A % of Revenue | - | - | 33.62% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 26.54% | 25.12% | 24.03% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 5.15B | 43M | 5.21B | 5.43B | 5.83B | 5.57B | 5.56B | 4.96B | 4.59B | 4.45B | 4.2B | 4.21B | 4.14B | 4.23B | 3.84B | 3.92B | 3.91B | 3.91B | 4.38B | 4.43B | 4.1B | 4.3B | 4.09B | 3.9B | 3.81B | 4.22B | 3.48B | 326.4M | 269.7M | 214.9M |
| Operating Income | 1.3B | 1.11B | 1.11B | 560M | -69M | 810M | -862M | 574M | 1.36B | 1.48B | 1.19B | 1.52B | 2.08B | 2.15B | 1.94B | 1.44B | 1.97B | 1.81B | 1.81B | 1.31B | 1.2B | 1.77B | 2.08B | 1.88B | 1.01B | 337.52M | 1.44B | 1.82B | 1.33B | 851.3M | 729.1M |
| Operating Margin % | 8.44% | 7.26% | 7.37% | 3.76% | -0.44% | 4.86% | -6.25% | 3.5% | 8.21% | 9.33% | 7.68% | 9.65% | 12.67% | 13.31% | 12.41% | 9.88% | 13.42% | 12.78% | 12.49% | 8.34% | 7.55% | 11.08% | 12.82% | 11.85% | 7.01% | 2.44% | 10.57% | 15.61% | 14.72% | 13.08% | 13.8% |
| Operating Income Growth % | - | 0.27% | 98.57% | 911.59% | -108.52% | 193.97% | -250.17% | -57.86% | -7.91% | 24.18% | -21.85% | -26.84% | -3.07% | 10.66% | 35.05% | -26.93% | 8.43% | 0% | 38.02% | 9.31% | -32.23% | -14.87% | 10.96% | 85.56% | 200.02% | -76.64% | -20.47% | 36.3% | 56.57% | 16.76% | 28.05% |
| EBITDA | 1.8B | 1.61B | 1.61B | 1.08B | 471M | 1.31B | -355M | 1.13B | 1.94B | 2.04B | 1.78B | 2.05B | 2.58B | 2.69B | 2.42B | 1.94B | 2.62B | 2.47B | 2.47B | 1.86B | 1.73B | 2.4B | 2.71B | 2.54B | 1.72B | 1.15B | 2.04B | 2.25B | 1.66B | 1.12B | 944M |
| EBITDA Margin % | 11.71% | 10.48% | 10.69% | 7.27% | 3.02% | 7.88% | -2.57% | 6.9% | 11.7% | 12.85% | 11.5% | 12.98% | 15.72% | 16.63% | 15.49% | 13.36% | 17.84% | 17.4% | 17% | 11.81% | 10.87% | 14.98% | 16.63% | 16.04% | 11.89% | 8.29% | 14.88% | 19.36% | 18.33% | 17.23% | 17.86% |
| EBITDA Growth % | 8.35% | -0.06% | 48.98% | 129.72% | -64.16% | 470.14% | -131.39% | -41.7% | -4.81% | 14.24% | -13.02% | -20.6% | -3.8% | 10.72% | 24.74% | -25.69% | 5.91% | 0% | 32.65% | 7.44% | -27.79% | -11.28% | 6.37% | 47.97% | 49.71% | -43.59% | -9.67% | 35.77% | 48.02% | 18.75% | 23.11% |
| D&A (Non-Cash Add-back) | 503M | 496M | 500M | 522M | 540M | 504M | 507M | 557M | 578M | 559M | 593M | 527M | 500M | 536M | 483M | 506M | 648M | 655M | 655M | 547M | 530M | 625M | 620M | 664M | 706M | 810.49M | 590.37M | 436.2M | 326.4M | 269.7M | 214.9M |
| EBIT | 1.33B | 1.11B | 1.22B | 646M | -51M | 490M | -910M | 604M | 1.4B | 1.5B | 1.2B | 1.53B | 2.09B | 2.15B | 1.95B | 1.44B | 1.99B | 1.82B | 1.82B | 1.31B | 1.23B | 1.77B | 2.04B | 1.88B | 1.01B | 337.52M | 1.44B | 1.82B | 1.33B | 851.3M | 729.1M |
| Net Interest Income | 19M | 3M | 25M | -4M | -70M | -162M | -182M | -46M | -40M | -55M | -67M | -53M | -70M | -56M | -81M | -69M | 14M | 1M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 42M | 26M | 112M | 86M | 18M | 5M | 10M | 30M | 33M | 19M | 8M | 6M | 5M | 5M | 6M | 5M | 14M | 7M | 7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 23M | 23M | 87M | 90M | 88M | 167M | 192M | 76M | 73M | 74M | 75M | 59M | 75M | 61M | 87M | 74M | 0 | 6M | 6M | 0 | 0 | 0 | 0 | 0 | 0 | 62.88M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 19M | 17M | 25M | -4M | -70M | -487M | -240M | -46M | -40M | -55M | -67M | -53M | -70M | -56M | -81M | -69M | 14M | 1M | 1M | 91M | 90M | 48M | -213M | -196M | -211M | -95.88M | -62.88M | -31.7M | -13.7M | 2.9M | 19.5M |
| Pretax Income | 1.32B | 1.13B | 1.14B | 556M | -139M | 323M | -1.1B | 528M | 1.32B | 1.42B | 1.12B | 1.47B | 2.01B | 2.09B | 1.86B | 1.37B | 1.98B | 1.82B | 1.82B | 1.41B | 1.26B | 1.82B | 1.87B | 1.68B | 800.88M | 241.64M | 1.38B | 1.78B | 1.32B | 854.2M | 748.6M |
| Pretax Margin % | 8.56% | 7.37% | 7.54% | 3.73% | -0.89% | 1.94% | -7.99% | 3.22% | 7.97% | 8.98% | 7.24% | 9.31% | 12.25% | 12.96% | 11.89% | 9.41% | 13.52% | 12.79% | 12.5% | 8.92% | 7.93% | 11.38% | 11.51% | 10.62% | 5.54% | 1.75% | 10.11% | 15.34% | 14.57% | 13.13% | 14.17% |
| Income Tax | 357M | 316M | 293M | 54M | 63M | 67M | -437M | 177M | 319M | 576M | 448M | 551M | 751M | 813M | 726M | 536M | 778M | 714M | 714M | 539M | 506M | 692M | 722M | 653M | 323.42M | 249.41M | 504.39M | 657.9M | 494.7M | 320.3M | 295.7M |
| Effective Tax Rate % | 27.07% | 27.92% | 25.77% | 9.71% | -45.32% | 20.74% | 39.66% | 33.52% | 24.13% | 40.45% | 39.86% | 37.46% | 37.31% | 38.84% | 39.01% | 39.15% | 39.25% | 39.32% | 39.32% | 38.34% | 40.03% | 37.96% | 38.57% | 38.8% | 40.38% | 103.21% | 36.5% | 36.86% | 37.5% | 37.5% | 39.5% |
| Net Income | 962M | 816M | 844M | 502M | -202M | 256M | -665M | 351M | 1B | 848M | 676M | 920M | 1.26B | 1.28B | 1.14B | 833M | 1.2B | 1.1B | 1.1B | 833M | 778M | 1.11B | 1.15B | 1.03B | 477.46M | -7.76M | 877.5M | 1.13B | 824.5M | 533.9M | 452.9M |
| Net Margin % | 6.25% | 5.31% | 5.59% | 3.37% | -1.29% | 1.54% | -4.82% | 2.14% | 6.05% | 5.35% | 4.36% | 5.82% | 7.68% | 7.93% | 7.25% | 5.73% | 8.21% | 7.76% | 7.59% | 5.28% | 4.88% | 6.95% | 7.07% | 6.5% | 3.3% | -0.06% | 6.42% | 9.69% | 9.11% | 8.2% | 8.57% |
| Net Income Growth % | 9.44% | -3.32% | 68.13% | 348.51% | -178.91% | 138.5% | -289.46% | -65% | 18.28% | 25.44% | -26.52% | -27.1% | -1.41% | 12.78% | 36.25% | -30.81% | 9.26% | 0% | 32.29% | 7.07% | -30.1% | -3.22% | 11.65% | 115.73% | 6249.63% | -100.88% | -22.15% | 36.7% | 54.43% | 17.88% | 27.94% |
| Net Income (Continuing) | 962M | 816M | 844M | 502M | -202M | 256M | -665M | 351M | 1B | 848M | 676M | 920M | 1.26B | 1.28B | 1.14B | 833M | 1.2B | 1.1B | 1.1B | 867M | 778M | 1.13B | 1.15B | 1.03B | 477M | -7.76M | 877.5M | 1.13B | 824.5M | 533.9M | 452.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.55 | 2.14 | 2.20 | 1.34 | -0.55 | 0.67 | -1.78 | 0.93 | 2.59 | 2.14 | 1.69 | 2.23 | 2.87 | 2.74 | 2.33 | 1.56 | 1.88 | 1.58 | 1.58 | 1.05 | 0.93 | 1.24 | 1.21 | 1.09 | 0.54 | -0.01 | 1.00 | 1.26 | 0.91 | 0.58 | 0.47 |
| EPS Growth % | 9.96% | -2.73% | 64.18% | 343.64% | -182.09% | 137.64% | -291.4% | -64.09% | 21.03% | 26.63% | -24.22% | -22.3% | 4.74% | 17.6% | 49.36% | -17.02% | 18.99% | 0% | 50.48% | 12.9% | -25% | 2.48% | 11.01% | 101.85% | - | -100.9% | -20.63% | 38.46% | 56.9% | 23.4% | 27.03% |
| EPS (Basic) | - | 2.18 | 2.24 | 1.36 | -0.55 | 0.68 | -1.78 | 0.93 | 2.61 | 2.16 | 1.69 | 2.24 | 2.90 | 2.78 | 2.35 | 1.57 | 1.89 | 1.59 | 1.59 | 1.05 | 0.94 | 1.26 | 1.29 | 1.15 | 0.55 | -0.01 | 1.03 | 1.32 | 0.95 | 0.60 | 0.49 |
| Diluted Shares Outstanding | 378M | 384M | 384M | 376M | 367M | 383M | 374M | 378M | 388M | 396M | 400M | 413M | 440M | 467M | 488M | 533M | 641M | 699M | 699M | 794M | 836M | 902M | 991M | 988.18M | 883.33M | 860.25M | 879.14M | 894.52M | 906.04M | 922.95M | 963.62M |
| Basic Shares Outstanding | 367M | 373M | 376M | 370M | 367M | 376M | 373.6M | 376M | 385M | 393M | 399M | 411M | 435M | 461M | 482M | 529M | 636M | 694M | 716M | 791M | 831M | 881M | 893M | 892.55M | 867.27M | 849.81M | 849.81M | 853.86M | 867.89M | 891.4M | 924.29M |
| Dividend Payout Ratio | - | 30.27% | 26.66% | 44.22% | - | 88.28% | - | 103.7% | 37.19% | 42.57% | 54.29% | 40.98% | 30.35% | 25.08% | 21.15% | 28.33% | 20.93% | 21.23% | 22.05% | 30.25% | 34.06% | 16.08% | 6.87% | 7.67% | 16.34% | - | 8.6% | 6.73% | 9.33% | 14.89% | 18.53% |
Promotional Margin Erosion
According to the latest quarterly income statements, GAP's revenue growth remains muted at 1.0% for 2026Q1, reflecting a mature retail footprint that struggles to generate meaningful organic expansion despite the company's multi-brand strategy and ongoing efforts to optimize its North American store network and digital presence.
The consistent low-single-digit growth suggests that the company is currently reliant on incremental gains rather than structural expansion. Investors should monitor whether the recent leadership changes can catalyze brand heat or if the revenue base will remain tethered to the broader, slow-moving U.S. apparel market.
As reported in financial statements, GAP's gross margin fluctuated between 38.1% and 42.7% over the last ten quarters, highlighting a structural vulnerability to seasonal discounting and inventory clearance requirements that frequently erode the profitability of the company's core denim and casual-wear product offerings across its diverse brands.
The volatility in gross margins suggests that the company lacks the pricing power of premium peers, forcing a reliance on markdowns to maintain inventory turnover. This sensitivity warrants further investigation into whether the company can successfully shift its mix toward full-price selling to stabilize these margins.
Based on GAP's reported figures, the operating margin reached 12.7% in 2026Q1, yet historical data shows significant variability, indicating that the company's high fixed-cost base makes it susceptible to deleveraging during periods where revenue growth fails to outpace the overhead associated with its extensive physical store footprint.
The wide range in operating margins suggests that the company's profitability is highly dependent on achieving specific revenue thresholds to cover lease and labor obligations. Analysts should interpret this as a sign that even minor revenue misses could lead to disproportionate impacts on bottom-line performance.
Analysis of the income statement reveals that stock-based compensation remains a recurring expense, reaching $44 million in 2025Q4, which may obscure the underlying cash-generative capacity of the business when evaluating the quality of the reported net income and the sustainability of the current earnings per share trajectory.
While net income has shown recovery, the persistent level of stock-based compensation warrants scrutiny regarding its impact on shareholder dilution and true economic profit. Investors should monitor whether these non-cash expenses align with long-term value creation or if they represent a persistent drag on reported earnings quality.
Data from recent filings suggests that the company's reliance on the Old Navy value segment may provide a defensive hedge, yet the persistent margin compression during peak holiday quarters indicates that the business model remains fundamentally vulnerable to aggressive competitive pricing and rising variable supply chain costs.
Short-term improvements in operating income may be masking deeper structural issues related to brand relevance and the long-term viability of mall-based retail. The market's current valuation may be overestimating the stability of these earnings if the company cannot successfully navigate the ongoing shift toward digital-first, full-price apparel consumption.
Quick answers to the most common questions about buying GAP stock.
For fiscal year 2025, The Gap, Inc. (GAP) reported total revenue of $15.37B. This represents a 190.8% increase compared to $5.28B in 1996.
The Gap, Inc. (GAP) is profitable, generating $816.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.3%.
The Gap, Inc. (GAP) reported an operating income of $1.11B, resulting in an operating profit margin of 7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
The Gap, Inc. (GAP) generated $6.27B in gross profit for the year, representing a gross profit margin of 40.8%. This demonstrates the company's core pricing power and production efficiency.