Filing Flows › Gap (GAP) › Q2 FY26
Gap (GAP) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Aug 29, 2025
Gap (GAP) reported revenue of $3.7B for the second quarter fiscal 2026 (Q2 FY26), +0.1% from a year earlier and +8% from the quarter before. Operating margin was 7.8%, net earnings $216M (5.8% of revenue).
Gap, Q2 FY26: revenue $3.7B (+0.1% year over year), operating margin 7.8%, net earnings $216M, operating cash flow $448M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.7B | +8% | +0.1% |
| Gross profit | $1.5B | +6% | -3% |
| Operating profit | $292M | +12% | -0.3% |
| Net earnings | $216M | +12% | +5% |
| Operating cash flow | $448M | — | -18% |
| Free cash flow | $350M | — | -24% |
What changed
Revenue was $3.7B in Q2 FY26, roughly flat year over year and up 8% from the previous quarter.
Gross margin was 41.2%, down 1.3 points from a year earlier. Operating profit was $0.29B, a 7.8% margin (unchanged year over year). Operating profit fell $1.0M even though revenue rose $0.01B versus a year earlier, so costs grew faster than sales. Operating expenses fell 4% while revenue was flat. Net earnings were $0.22B, up 5% year over year. The effective tax rate was 27.0%.
Operating cash flow was $0.45B (down 18% year over year), 207% of net earnings. Non-cash charges added back $0.12B of depreciation and amortization and $0.03B of share-based compensation. Working capital and other items added $0.08B. Capital expenditures of $0.10B left free cash flow of $0.35B.
Questions
What was Gap's revenue in the second quarter fiscal 2026?
Gap (GAP) reported revenue of $3.7B for the second quarter fiscal 2026 (Q2 FY26), +0.1% from a year earlier and +8% from the quarter before.
Was Gap profitable in the second quarter fiscal 2026?
Operating profit was $292M (7.8% of revenue) and net earnings $216M.
Source: Gap 10-Q on SEC EDGAR.