Filing Flows › Gap (GAP) › Q1 FY27
Gap (GAP) Q1 FY27 earnings results (first quarter fiscal 2027)
10-Q filed May 29, 2026
Gap (GAP) reported revenue of $3.5B for the first quarter fiscal 2027 (Q1 FY27), +1% from a year earlier and -17% from the quarter before. Operating margin was 12.7%, net earnings $339M (9.7% of revenue).
Gap, Q1 FY27: revenue $3.5B (+1% year over year), operating margin 12.7%, net earnings $339M, operating cash flow $213M. The chart follows the revenue to costs, profit and cash.
| Q1 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.5B | -17% | +1% |
| Gross profit | $1.4B | -12% | -2% |
| Operating profit | $445M | +94% | +71% |
| Net earnings | $339M | +98% | +76% |
| Operating cash flow | $213M | -69% | — |
| Free cash flow | $78.0M | — | — |
What changed
Revenue was $3.5B in Q1 FY27, up 1% year over year and down 17% from the previous quarter.
Gross margin was 40.5%, down 1.3 points from Q1 FY26. Operating profit was $0.45B, a 12.7% margin (up 5.2 points year over year). Of the extra revenue versus Q1 FY26, 544% reached operating profit, above the 8% margin then. Operating expenses fell 18% while revenue rose 1%. Net earnings were $0.34B, up 76% year over year. The effective tax rate was 24.7%.
Operating cash flow was $0.21B, 63% of net earnings. Non-cash charges added back $0.13B of depreciation and amortization and $0.04B of share-based compensation. Working capital and other items used $0.29B. After purchases of property and equipment ($0.14B), free cash flow as the company reports it was $0.08B.
Questions
What was Gap's revenue in the first quarter fiscal 2027?
Gap (GAP) reported revenue of $3.5B for the first quarter fiscal 2027 (Q1 FY27), +1% from a year earlier and -17% from the quarter before.
Was Gap profitable in the first quarter fiscal 2027?
Operating profit was $445M (12.7% of revenue) and net earnings $339M.
Source: Gap 10-Q on SEC EDGAR.