Gap

GAP · NYSE · Consumer Discretionary · Financials, fiscal 2016 to 2025

GAP · Last close · October 26, 2026

$22.26

Gap's revenue rose 1.9% to $15.4 billion in fiscal 2025. Its operating margin was 7.3%, down from 7.4% a year earlier. Free cash flow was $823 million, down 20.8%. It paid out $402 million in dividends and buybacks, 49% of free cash flow.

GAP, INC Latest fiscal year ended January 31, 2026 10-K filed March 17, 2026 · 0001628280-26-018573 Updated October 9, 2026

Revenue

$15.4B

1.9%

Operating margin

7.3%

0.1 pts

Net income

$816M

3.3%

Free cash flow

$823M

20.8%

Return on capital

36.1%

1.7 pts

Market cap

$8.1B

Oct 26 close

P/E

6.7x

On $3.34 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Gap does

Gap Inc. sells apparel, accessories and personal care products for men, women and children under four brands: Old Navy, Gap, Banana Republic and Athleta. Old Navy is its value-priced brand and Athleta focuses on performance clothing for women and girls. It sells in its own stores and on its websites, and uses services such as buy online and pick up in store.

The company ended its 2025 fiscal year with 2,474 stores that it operates itself, in the United States, Canada, Japan and Taiwan, and about 1,000 franchise stores. Franchise partners run stores and websites under its brand names in Asia, Europe, Latin America, the Middle East and Africa. It also licenses its brand names to other companies. Each brand has a private label and a co-branded credit card from a third-party lender, and the company shares in the revenue. Customers earn rewards across all brands through its loyalty program, Encore.

It buys from about 200 vendors whose factories are in about 30 countries, nearly all outside North America. About 27 percent of its fiscal 2025 purchases came from factories in Vietnam and about 21 percent from Indonesia. Sales peak around the end-of-year holidays.

Its biggest risks, as it describes them

Misjudging fashion trends and shoppers' tastes, or harming the image of its brands.
US tariffs and other trade rules raising the cost of products made by outside factories abroad.
Its reliance on independent vendors in other countries for almost all of its products.
Keeping the right amount of inventory and running its stores and online fulfillment well.
Franchise and licensing partners who run stores and websites under its names outside its direct control.

From Gap's annual report on Form 10-K, filed March 17, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 2.6% a year and net income 2.1% a year, as buybacks cut the share count by 4%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Gap yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

What Gap says to expect

Full year fiscal 2026: net salesThe Company's updated full-year net sales outlook of up 1% to 1.5% now assumes Old Navy comparable sales of flat to down 1%, compared with the prior range of flat to up 1%, reflecting the brand's second-quarter performance.
Full year fiscal 2026: diluted earnings per shareOn a reported basis, the Company now expects full year diluted earnings per share to be approximately $3.77 to $3.87.

The company's own words, from its earnings release (Form 8-K, Exhibit 99), filed August 27, 2026. They are its expectations, not ours, and not a forecast or price target from The Filing Desk. Replaced when the next release is out.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Gap's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Gap's fiscal 2025 free cash flow of $823M, net cash of $1.5B at January 31, 2026 and 384 million diluted shares, from its filings. The scenarios are fitted to Gap: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -0.5% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 11%: 9% for a business of moderate risk (Apparel Retail), plus 1 point as a smaller company, worth $8.1B, plus 1 point for unsteady results (a loss in fiscal 2022); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at January 31, 2026. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Gap's own revenue growth, as above. Cautious: growth of -2% then 0% a year, 2% after year 10, a 12% discount rate. Base: growth of 0% then 1% a year, 2.5% after year 10, a 11% discount rate. Optimistic: growth of 2% then 2.5% a year, 3% after year 10, a 10% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $22.26
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Careful. Gap's P/E today, 6.7×, is less than half the example multiple. A gap that wide usually means one of two things: its latest earnings include large one-off items, such as a tax benefit or a gain on a sale, or investors expect its earnings to fall. Either way the examples can mislead, so they aren't set against the share price. Check the earnings in its latest filings before using them.

Value per share on three example scenarios, from Gap's earnings per share of $3.34 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 17.8×, the middle of Gap's own P/E today, its peers' median and its sector's median (the Consumer Discretionary median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 12%, 11% and 10%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to August 1, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Burlington Stores, Ross Stores, Victoria's Secret, Urban Outfitters.

Earnings growth in the years ahead (% a year) Starts at Gap's revenue growth over the last 3 years, -0.5% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $22.26
Value at this multiple, against the last close: —
Gap's P/E at the last close: 6.7×

Company	Last close	Earnings per share	P/E today
Ross StoresROST	$234.11	$8.26	28.3×
Burlington StoresBURL	$241.26	$11.13	21.7×
Victoria's SecretVSXY	$94.96	$4.49	21.1×
Urban OutfittersURBN	$90.59	$6.41	14.1×
GapGAP	$22.26	$3.34	6.7×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	877	1,215	1,873	2,588	3,002
Debt incl. finance leases	1,484	1,486	1,488	1,490	1,492
Net debt (negative means net cash)	607	271	−385	−1,098	−1,510
Net debt to EBITDA	0.5x	0.6x	−0.4x	−0.7x	−0.9x
Debt to equity	0.6x	0.7x	0.6x	0.5x	0.4x
Interest coverage	4.8x	−0.8x	6.2x	12.8x	12.0x
Current ratio	1.3x	1.4x	1.4x	1.6x	1.8x
Quick ratio	0.5x	0.7x	0.8x	1.0x	1.1x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Gap shares on the open market, and 11 insiders sold $83.8 million, $17.2 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 6, 2026	William Sydney FisherDirector, 10% owner	Sold	500,000	$23.89	$11.9 million	Form 4
Oct 6, 2026	Julie GruberChief Legal&Compliance Officer	Sold plan	27,538	$23.56	$648,680	Form 4
Oct 5, 2026	William Sydney FisherDirector, 10% owner	Sold	433,656	$23.35	$10.1 million	Form 4
Sep 30, 2026	William Sydney FisherDirector, 10% owner	Sold	66,344	$23.06	$1.5 million	Form 4
Apr 17, 2026	Julie GruberChief Legal&Compliance Officer	Sold plan	5,302	$27.00	$143,154	Form 4
Apr 10, 2026	Eric Kayen ChanChief Business & Strat Officer	Sold	13,377	$26.19	$350,302	Form 4
Apr 8, 2026	John J Fisher10% owner	Sold	300,000	$25.40	$7.6 million	Form 4
Apr 6, 2026	Amanda J ThompsonChief People Officer	Sold	25,000	$25.14	$628,500	Form 4
Mar 23, 2026	Sarah GilliganChief Sup Chn & Transform Ofcr	Sold plan	69,912	$25.00	$1.7 million	Form 4
Mar 20, 2026	Horacio BarbeitoPresident & CEO, Old Navy	Sold plan	113,684	$24.01	$2.7 million	Form 4
Mar 19, 2026	Katrina O'ConnellChief Financial Officer	Sold plan	8,486	$23.74	$201,458	Form 4
Mar 19, 2026	Mark BreitbardPresident & CEO, Gap Brand	Sold plan	8,486	$23.73	$201,373	Form 4

The latest 12 of 26 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Pass
Current ratio rose	Pass	Pass	Pass
Share count didn't rise	Fail	Fail	Pass
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Pass	Fail
F-score	7 of 9	8 of 9	6 of 9
Accruals ratio	−9.2%	−5.6%	−3.9%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Gap side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Gap	FY25	1.9%	7.3%	5.4%	36.1%	−0.9x	6
Burlington Stores	FY25	8.8%	—	1.5%	28.1%	0.6x	7	Compare
Ross Stores	FY25	7.7%	11.9%	9.7%	67.0%	−1.0x	6	Compare
Victoria's Secret	FY25	5.2%	4.1%	4.8%	17.7%	0.9x	6	Compare
Urban Outfitters	FY26	11.1%	9.8%	5.1%	23.7%	−0.9x	8	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	15,516	15,855	16,580	16,383	13,800	16,670	15,616	14,889	15,086	15,366
Revenue growth	−1.8%	2.2%	4.6%	−1.2%	−15.8%	20.8%	−6.3%	−4.7%	1.3%	1.9%
Gross profit	5,640	6,066	6,322	6,133	4,705	6,637	5,359	5,775	6,227	6,268
Research and development	46	51	50	41	46	41	46	37	40	60
Operating income	1,191	1,479	1,362	574	−862	810	−69	560	1,112	1,115
Net income	676	848	1,003	351	−665	256	−202	502	844	816
Diluted EPS (US$)	1.69	2.14	2.59	0.93	−1.78	0.67	−0.55	1.34	2.20	2.13
Diluted shares (millions)	400	396	388	378	374	383	367	376	384	384
Cash flow
Cash from operations	1,719	1,380	1,381	1,411	237	809	607	1,532	1,486	1,293
Capital expenditure	524	731	705	702	392	694	685	420	447	470
Free cash flow	1,195	649	676	709	−155	115	−78	1,112	1,039	823
Dividends paid	367	361	373	364	0	226	220	222	225	247
Share buybacks	0	315	398	200	0	201	123	0	75	155
Acquisitions	0	0	0	69	0	135	0	0	0	0
Stock-based compensation	76	87	91	68	77	139	37	80	126	162
Balance sheet at fiscal year end
Cash and short-term investments	1,783	1,783	1,369	1,654	2,398	877	1,215	1,873	2,588	3,002
Debt incl. finance leases	1,338	1,249	1,255	1,255	2,216	1,484	1,486	1,488	1,490	1,492
Total assets	7,610	7,989	8,049	13,679	13,769	12,761	11,386	11,044	11,885	12,632
Total liabilities	4,706	4,845	4,496	10,363	11,155	10,039	9,153	8,449	8,621	8,831
Shareholders' equity	2,904	3,144	3,553	3,316	2,614	2,722	2,233	2,595	3,264	3,801
Margins and ratios
Gross margin	36.4%	38.3%	38.1%	37.4%	34.1%	39.8%	34.3%	38.8%	41.3%	40.8%
Operating margin	7.7%	9.3%	8.2%	3.5%	−6.2%	4.9%	−0.4%	3.8%	7.4%	7.3%
Net margin	4.4%	5.3%	6.0%	2.1%	−4.8%	1.5%	−1.3%	3.4%	5.6%	5.3%
Free cash flow margin	7.7%	4.1%	4.1%	4.3%	−1.1%	0.7%	−0.5%	7.5%	6.9%	5.4%
Return on capital	26.7%	34.8%	34.2%	12.0%	−25.5%	22.3%	−1.9%	21.4%	37.7%	36.1%
Return on equity	24.8%	28.0%	29.9%	10.2%	−22.4%	9.6%	−8.2%	20.8%	28.8%	23.1%
Return on assets	9.0%	10.9%	12.5%	3.2%	−4.8%	1.9%	−1.7%	4.5%	7.4%	6.7%
Net debt to EBITDA	−0.2x	−0.3x	−0.1x	−0.3x	—	0.5x	0.6x	−0.4x	−0.7x	−0.9x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Gap's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Gap.