Gap Inc. (GAP) Stock Falls on Q4 2025 Earnings

Gap Inc. (GAP) reported fourth-quarter 2025 revenue of $4.24 billion, up 2.1% year-over-year, with gross profit of $1.61 billion (up 0.1%). Operating profit fell to $229 million, down 11.6% year-over-year, while net income attributable to common shareholders declined to $171 million, a 17.0% decrease.

Revenue: $4.24 billion (+2.1% YoY)

Gross profit: $1.61 billion (+0.1% YoY)

Operating profit: $229 million (-11.6% YoY)

Net income: $171 million (-17.0% YoY)

Diluted EPS: $0.45 (-15.1% YoY)

Cash flow from operating activities weakened sharply to $299 million, down 51.5% year-over-year. Capital expenditures (purchases of property, plant and equipment) increased to $146 million, up 24.8% versus the prior year.

Operating cash flow: $299 million (-51.5% YoY)

Capital spending: $146 million (+24.8% YoY)

On the balance sheet, cash and cash equivalents stood at $2.62 billion, a 12.0% increase year-over-year. Cost of sales was $2.62 billion (up 3.4%), and total liabilities totaled $8.83 billion (up 2.4%).

Cash and equivalents: $2.62 billion (+12.0% YoY)

Cost of sales: $2.62 billion (+3.4% YoY)

Total liabilities: $8.83 billion (+2.4% YoY)

Following the release, the stock moved lower, trading down about 9.6% since market close.

Note: This financials data is sourced from a third-party provider and has not been independently verified by Quiver.

Gap Inc. Insider Trading Activity

Gap Inc. insiders have traded $GAP stock on the open market 13 times in the past 6 months. Of those trades, 0 have been purchases and 13 have been sales.

Here’s a breakdown of recent trading of $GAP stock by insiders over the last 6 months:

ROBERT J FISHER has made 0 purchases and 2 sales selling 1,000,000 shares for an estimated $25,173,150.
WILLIAM SYDNEY FISHER has made 0 purchases and 5 sales selling 943,064 shares for an estimated $24,051,074.
JOHN J FISHER has made 0 purchases and 2 sales selling 253,971 shares for an estimated $7,045,475.
JULIE GRUBER (Chief Legal&Compliance Officer) has made 0 purchases and 3 sales selling 92,073 shares for an estimated $2,515,971.
ELISABETH B DONOHUE sold 3,000 shares for an estimated $81,331

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

Gap Inc. Hedge Fund Activity

We have seen 298 institutional investors add shares of Gap Inc. stock to their portfolio, and 279 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

DODGE & COX removed 5,429,526 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $138,995,865
D. E. SHAW & CO., INC. removed 4,933,597 shares (-88.0%) from their portfolio in Q4 2025, for an estimated $126,300,083
FMR LLC added 4,924,097 shares (+115.9%) to their portfolio in Q4 2025, for an estimated $126,056,883
STEADFAST CAPITAL MANAGEMENT LP removed 4,305,373 shares (-43.2%) from their portfolio in Q4 2025, for an estimated $110,217,548
AMERIPRISE FINANCIAL INC added 4,113,390 shares (+89.6%) to their portfolio in Q4 2025, for an estimated $105,302,784
SAMLYN CAPITAL, LLC removed 2,324,716 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $59,512,729
SQUAREPOINT OPS LLC removed 2,298,969 shares (-36.0%) from their portfolio in Q4 2025, for an estimated $58,853,606

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Gap Inc. Analyst Ratings

Wall Street analysts have issued reports on $GAP in the last several months. We have seen 8 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Baird issued a "Outperform" rating on 12/17/2025
Telsey Advisory Group issued a "Outperform" rating on 12/17/2025
Morgan Stanley issued a "Overweight" rating on 11/21/2025
BTIG issued a "Buy" rating on 11/21/2025
Goldman Sachs issued a "Buy" rating on 11/21/2025
Evercore ISI Group issued a "Outperform" rating on 11/21/2025
JP Morgan issued a "Overweight" rating on 11/21/2025

To track analyst ratings and price targets for Gap Inc., check out Quiver Quantitative's $GAP forecast page.

Gap Inc. Price Targets

Multiple analysts have issued price targets for $GAP recently. We have seen 13 analysts offer price targets for $GAP in the last 6 months, with a median target of $31.0.

Here are some recent targets:

Dana Telsey from Telsey Advisory Group set a target price of $34.0 on 03/02/2026
Brooke Roach from Goldman Sachs set a target price of $32.0 on 01/30/2026
Jay Sole from UBS set a target price of $41.0 on 01/08/2026
Mark Altschwager from Baird set a target price of $33.0 on 12/17/2025
Ike Boruchow from Wells Fargo set a target price of $30.0 on 12/16/2025
Paul Lejuez from Citigroup set a target price of $25.0 on 11/24/2025
Robert Drbul from BTIG set a target price of $31.0 on 11/21/2025