Filing Flows › Gap (GAP) › Q1 FY26
Gap (GAP) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed May 30, 2025
Gap (GAP) reported revenue of $3.5B for the first quarter fiscal 2026 (Q1 FY26), +2% from a year earlier and -17% from the quarter before. Operating margin was 7.5%, net earnings $193M (5.6% of revenue).
Gap, Q1 FY26: revenue $3.5B (+2% year over year), operating margin 7.5%, net earnings $193M, operating cash flow −$140M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.5B | -17% | +2% |
| Gross profit | $1.4B | -10% | +4% |
| Operating profit | $260M | +0.4% | +27% |
| Net earnings | $193M | -6% | +22% |
| Operating cash flow | −$140M | -123% | — |
What changed
Revenue was $3.5B in Q1 FY26, up 2% year over year and down 17% from the previous quarter.
Gross margin was 41.8%, up 0.6 points from a year earlier. Operating profit was $0.26B, a 7.5% margin (up 1.5 points year over year). Of the extra revenue versus a year earlier, 73% reached operating profit, above the 6% margin then. Operating expenses fell 0% while revenue rose 2%. Net earnings were $0.19B, up 22% year over year. The effective tax rate was 26.6%.
Operating cash flow was −$0.14B. Non-cash charges added back $0.12B of depreciation and amortization and $0.04B of share-based compensation. Working capital and other items used $0.49B. Capital expenditures of $0.08B exceeded it, leaving free cash flow of −$0.22B.
Questions
What was Gap's revenue in the first quarter fiscal 2026?
Gap (GAP) reported revenue of $3.5B for the first quarter fiscal 2026 (Q1 FY26), +2% from a year earlier and -17% from the quarter before.
Was Gap profitable in the first quarter fiscal 2026?
Operating profit was $260M (7.5% of revenue) and net earnings $193M.
Source: Gap 10-Q on SEC EDGAR.