Gap Inc Financials
This page shows Gap Inc (GAP) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Margin repair, not sales growth, is driving Gap’s recovery and turning a lower-revenue business into a stronger cash generator.
In FY2026, revenue was still only$15.4B versus$16.7B in FY2022, so the stronger profit profile is not a scale story but a sign the company now earns more on each sales dollar. The real shift is margin repair: gross margin recovered from34.3% in FY2023 to40.8% in FY2026, which points to better merchandise economics and tighter expense absorption even before sales fully returned.
Cash conversion also supports that recovery, with FY2026 operating cash flow of
The balance sheet got sturdier through internal cash generation rather than added leverage: cash climbed to
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Gap Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Gap Inc has an operating margin of 7.3%, meaning the company retains $7 of operating profit per $100 of revenue. This results in a moderate score of 37/100, indicating healthy but not exceptional operating efficiency. This is down from 7.4% the prior year.
Gap Inc's revenue grew a modest 1.9% year-over-year to $15.4B. This slow but positive growth earns a score of 36/100.
Gap Inc carries a low D/E ratio of 0.39, meaning only $0.39 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 94/100, indicating a strong balance sheet with room for future borrowing.
Gap Inc's current ratio of 1.75 indicates adequate short-term liquidity, earning a score of 31/100. The company can meet its near-term obligations, though with limited headroom.
Gap Inc has a free cash flow margin of 5.4%, earning a moderate score of 41/100. The company generates positive cash flow after capital investments, but with room for improvement.
Gap Inc's ROE of 21.5% shows moderate profitability relative to equity, earning a score of 60/100. This is down from 25.4% the prior year.
Gap Inc scores 2.67, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Gap Inc passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, all 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Gap Inc generates $1.58 in operating cash flow ($1.3B OCF vs $816.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Gap Inc earns $12.0 in operating income for every $1 of interest expense ($1.1B vs $93.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Gap Inc generated $15.4B in revenue in fiscal year 2026. This represents an increase of 1.9% from the prior year.
Gap Inc's EBITDA was $1.6B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 0.1% from the prior year.
Gap Inc reported $816.0M in net income in fiscal year 2026. This represents a decrease of 3.3% from the prior year.
Gap Inc earned $2.13 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 3.2% from the prior year.
Cash & Balance Sheet
Gap Inc generated $823.0M in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 20.8% from the prior year.
Gap Inc held $2.6B in cash against $1.5B in long-term debt as of fiscal year 2026.
Gap Inc paid $0.66 per share in dividends in fiscal year 2026. This represents an increase of 10.0% from the prior year.
Gap Inc had 373M shares outstanding in fiscal year 2026. This represents a decrease of 0.6% from the prior year.
Margins & Returns
Gap Inc's gross margin was 40.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 0.5 percentage points from the prior year.
Gap Inc's operating margin was 7.3% in fiscal year 2026, reflecting core business profitability. This is down 0.1 percentage points from the prior year.
Gap Inc's net profit margin was 5.3% in fiscal year 2026, showing the share of revenue converted to profit. This is down 0.3 percentage points from the prior year.
Gap Inc's ROE was 21.5% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 3.9 percentage points from the prior year.
Capital Allocation
Gap Inc invested $60.0M in research and development in fiscal year 2026. This represents an increase of 50.0% from the prior year.
Gap Inc spent $155.0M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 106.7% from the prior year.
Gap Inc invested $470.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 5.1% from the prior year.
GAP Income Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.9B+5.8% | $3.7B+7.6% | $3.5B-15.0% | $4.1B+6.4% | $3.8B+2.9% | $3.7B+9.8% | $3.4B-19.1% | $4.2B |
| Cost of Revenue | $2.3B+3.8% | $2.2B+8.6% | $2.0B-19.8% | $2.5B+14.5% | $2.2B+2.7% | $2.1B+7.3% | $2.0B-26.2% | $2.7B |
| Gross Profit | $1.7B+8.7% | $1.5B+6.1% | $1.4B-7.2% | $1.6B-4.5% | $1.6B+3.3% | $1.6B+13.3% | $1.4B-6.2% | $1.5B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $334.0M+14.4% | $292.0M+12.3% | $260.0M+27.5% | $204.0M-42.5% | $355.0M+21.2% | $293.0M+42.9% | $205.0M+20600.0% | -$1.0M |
| Interest Expense | $23.0M0.0% | $23.0M0.0% | $23.0M+35.3% | $17.0M-26.1% | $23.0M-4.2% | $24.0M+14.3% | $21.0M-19.2% | $26.0M |
| Income Tax | $101.0M+26.3% | $80.0M+14.3% | $70.0M+52.2% | $46.0M-47.1% | $87.0M-3.3% | $90.0M+80.0% | $50.0M+363.2% | -$19.0M |
| Net Income | $236.0M+9.3% | $216.0M+11.9% | $193.0M+12.9% | $171.0M-37.6% | $274.0M+33.0% | $206.0M+30.4% | $158.0M+1655.6% | $9.0M |
| EPS (Diluted) | $0.62+8.8% | $0.57+11.8% | $0.51 | N/A | $0.72+33.3% | $0.54+31.7% | $0.41 | N/A |
GAP Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $12.4B+1.8% | $12.1B+5.0% | $11.6B-2.7% | $11.9B+0.3% | $11.9B+3.0% | $11.5B+5.5% | $10.9B-1.2% | $11.0B |
| Current Assets | $5.6B+4.9% | $5.4B+10.1% | $4.9B-6.1% | $5.2B+1.4% | $5.1B+6.7% | $4.8B+14.6% | $4.2B-4.5% | $4.4B |
| Cash & Equivalents | $2.3B+3.1% | $2.2B+11.0% | $2.0B-15.4% | $2.3B+18.6% | $2.0B+3.6% | $1.9B+24.0% | $1.5B-18.2% | $1.9B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | N/A | N/A | N/A | $301.0M | N/A | N/A | N/A | $289.0M |
| Goodwill | N/A | N/A | N/A | $207.0M | N/A | N/A | N/A | $207.0M |
| Total Liabilities | $8.7B+0.1% | $8.7B+5.7% | $8.2B-4.4% | $8.6B-1.1% | $8.7B+1.3% | $8.6B+5.0% | $8.2B-2.9% | $8.4B |
| Current Liabilities | $3.3B+2.6% | $3.2B+12.0% | $2.9B-12.3% | $3.3B-2.1% | $3.3B+3.1% | $3.2B+14.9% | $2.8B-9.4% | $3.1B |
| Long-Term Debt | $1.5B0.0% | $1.5B+0.1% | $1.5B0.0% | $1.5B+0.1% | $1.5B0.0% | $1.5B0.0% | $1.5B+0.1% | $1.5B |
| Total Equity | $3.6B+6.2% | $3.4B+3.4% | $3.3B+1.7% | $3.3B+4.1% | $3.1B+8.1% | $2.9B+7.2% | $2.7B+4.3% | $2.6B |
| Retained Earnings | $3.5B+5.2% | $3.3B+4.9% | $3.2B+4.3% | $3.0B+5.2% | $2.9B+8.1% | $2.7B+5.9% | $2.5B+4.2% | $2.4B |
GAP Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $299.0M-33.3% | $448.0M+420.0% | -$140.0M-122.7% | $616.0M+111.7% | $291.0M-47.0% | $549.0M+1730.0% | $30.0M-95.7% | $700.0M |
| Capital Expenditures | $146.0M+49.0% | $98.0M+18.1% | $83.0M-29.1% | $117.0M-20.9% | $148.0M+66.3% | $89.0M-4.3% | $93.0M-29.5% | $132.0M |
| Free Cash Flow | $153.0M-56.3% | $350.0M+257.0% | -$223.0M-144.7% | $499.0M+249.0% | $143.0M-68.9% | $460.0M+830.2% | -$63.0M-111.1% | $568.0M |
| Investing Cash Flow | -$163.0M-79.1% | -$91.0M-24.7% | -$73.0M+37.1% | -$116.0M+23.2% | -$151.0M-12.7% | -$134.0M+54.0% | -$291.0M-122.1% | -$131.0M |
| Financing Cash Flow | -$66.0M+52.5% | -$139.0M+9.2% | -$153.0M-19.5% | -$128.0M-85.5% | -$69.0M-46.8% | -$47.0M+39.0% | -$77.0M-51.0% | -$51.0M |
| Dividends Paid | $62.0M0.0% | $62.0M+1.6% | $61.0M+8.9% | $56.0M-1.8% | $57.0M+1.8% | $56.0M0.0% | $56.0M0.0% | $56.0M |
| Share Buybacks | $0-100.0% | $82.0M+17.1% | $70.0M-6.7% | $75.0M | $0 | $0 | $0 | $0 |
GAP Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.4%+1.1pp | 41.2%-0.6pp | 41.8%+3.5pp | 38.3%-4.4pp | 42.7%+0.2pp | 42.5%+1.3pp | 41.2%+5.7pp | 35.6% |
| Operating Margin | 8.5%+0.6pp | 7.8%+0.3pp | 7.5%+2.5pp | 5.0%-4.3pp | 9.3%+1.4pp | 7.9%+1.8pp | 6.0%+6.1pp | -0.0% |
| Net Margin | 6.0%+0.2pp | 5.8%+0.2pp | 5.6%+1.4pp | 4.2%-3.0pp | 7.2%+1.6pp | 5.5%+0.9pp | 4.7%+4.4pp | 0.2% |
| Return on Equity | 6.5%+0.2pp | 6.3%+0.5pp | 5.8%+0.6pp | 5.2%-3.5pp | 8.7%+1.6pp | 7.1%+1.3pp | 5.8%+5.5pp | 0.4% |
| Return on Assets | 1.9%+0.1pp | 1.8%+0.1pp | 1.7%+0.2pp | 1.4%-0.9pp | 2.3%+0.5pp | 1.8%+0.3pp | 1.5%+1.4pp | 0.1% |
| Current Ratio | 1.72+0.0 | 1.68-0.0 | 1.71+0.1 | 1.60+0.1 | 1.54+0.1 | 1.490.0 | 1.50+0.1 | 1.42 |
| Debt-to-Equity | 0.41-0.0 | 0.43-0.0 | 0.450.0 | 0.46-0.0 | 0.47-0.0 | 0.51-0.0 | 0.55-0.0 | 0.57 |
| FCF Margin | 3.9%-5.5pp | 9.4%+15.8pp | -6.4%-18.7pp | 12.3%+8.5pp | 3.7%-8.6pp | 12.4%+14.2pp | -1.9%-15.4pp | 13.6% |
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Frequently Asked Questions
What is Gap Inc's annual revenue?
Gap Inc (GAP) reported $15.4B in total revenue for fiscal year 2026. This represents a 1.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Gap Inc's revenue growing?
Gap Inc (GAP) revenue grew by 1.9% year-over-year, from $15.1B to $15.4B in fiscal year 2026.
Is Gap Inc profitable?
Yes, Gap Inc (GAP) reported a net income of $816.0M in fiscal year 2026, with a net profit margin of 5.3%.
What is Gap Inc's EBITDA?
Gap Inc (GAP) had EBITDA of $1.6B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Gap Inc have?
As of fiscal year 2026, Gap Inc (GAP) had $2.6B in cash and equivalents against $1.5B in long-term debt.
What is Gap Inc's gross margin?
Gap Inc (GAP) had a gross margin of 40.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Gap Inc's operating margin?
Gap Inc (GAP) had an operating margin of 7.3% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Gap Inc's net profit margin?
Gap Inc (GAP) had a net profit margin of 5.3% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Does Gap Inc pay dividends?
Yes, Gap Inc (GAP) paid $0.66 per share in dividends during fiscal year 2026.
What is Gap Inc's return on equity (ROE)?
Gap Inc (GAP) has a return on equity of 21.5% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Gap Inc's free cash flow?
Gap Inc (GAP) generated $823.0M in free cash flow during fiscal year 2026. This represents a -20.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Gap Inc's operating cash flow?
Gap Inc (GAP) generated $1.3B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Gap Inc's total assets?
Gap Inc (GAP) had $12.6B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Gap Inc's capital expenditures?
Gap Inc (GAP) invested $470.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Gap Inc spend on research and development?
Gap Inc (GAP) invested $60.0M in research and development during fiscal year 2026.
What is Gap Inc's current ratio?
Gap Inc (GAP) had a current ratio of 1.75 as of fiscal year 2026, which is generally considered healthy.
What is Gap Inc's debt-to-equity ratio?
Gap Inc (GAP) had a debt-to-equity ratio of 0.39 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Gap Inc's return on assets (ROA)?
Gap Inc (GAP) had a return on assets of 6.5% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Gap Inc's Altman Z-Score?
Gap Inc (GAP) has an Altman Z-Score of 2.67, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Gap Inc's Piotroski F-Score?
Gap Inc (GAP) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Gap Inc's earnings high quality?
Gap Inc (GAP) has an earnings quality ratio of 1.58x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Gap Inc cover its interest payments?
Gap Inc (GAP) has an interest coverage ratio of 12.0x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Gap Inc?
Gap Inc (GAP) scores 50 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.