The Gap, Inc.GAP
NYSE•Consumer Cyclical•Apparel Retail
The Gap, Inc. operates as an apparel retail company in the United States, Canada, Japan, Taiwan, and internationally. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements, as well as licensing partnerships. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.
Gap, Inc. (The) (GAP) reported trailing twelve months revenue of $15.40B as of May 2026, a 1.6% increase year-over-year. Quarterly revenue reached $3.50B, reflecting continued top-line momentum.
Gap, Inc. (The) generated $962.00M in TTM net income, with quarterly EBITDA of $573.00M. The operating margin expanded from 7.5% to 12.7%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (12.7%) and net margin (9.7%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 5.6% a year ago, signaling stronger bottom-line efficiency.
GAP trades at a P/E of 9.4x (below the broader market average) and a P/S of 0.6x. The price-to-book ratio of 2.5x reflects a moderate premium to book value.
The company generated $78.00M in free cash flow over the trailing twelve months, a 135.0% increase year-over-year, indicating cash generation ability. The balance sheet shows $12.14B in total assets with $1.49B in long-term debt against $3.65B in stockholders equity for a debt-to-equity ratio of 0.4, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~8.2% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 25.3% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue shows resilience with 6 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~8.6% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 2.4% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation