Filing Flows › Gap (GAP) › Q2 FY27
Gap (GAP) Q2 FY27 earnings results (second quarter fiscal 2027)
10-Q filed Aug 28, 2026
Gap (GAP) reported revenue of $3.7B for the second quarter fiscal 2027 (Q2 FY27), -2% from a year earlier and +4% from the quarter before. Operating margin was 18.5%, net earnings $501M (13.7% of revenue).
Gap, Q2 FY27: revenue $3.7B (-2% year over year), operating margin 18.5%, net earnings $501M, operating cash flow $337M. The chart follows the revenue to costs, profit and cash.
| Q2 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.7B | +4% | -2% |
| Gross profit | $1.9B | +36% | +26% |
| Operating profit | $676M | +52% | +132% |
| Net earnings | $501M | +48% | +132% |
| Operating cash flow | $337M | +58% | -25% |
| Free cash flow | $183M | +135% | -48% |
What changed
Revenue was $3.7B in Q2 FY27, down 2% year over year and up 4% from the previous quarter.
Gross margin was 52.8%, up 11.6 points from Q2 FY26. Operating profit was $0.68B, a 18.5% margin (up 10.7 points year over year). Operating expenses grew 1% against a revenue fall of 2%. Net earnings were $0.50B, up 132% year over year. The effective tax rate was 26.3%.
Operating cash flow was $0.34B (down 25% year over year), 67% 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 $0.34B. Capital expenditures of $0.15B left free cash flow of $0.18B.
Questions
What was Gap's revenue in the second quarter fiscal 2027?
Gap (GAP) reported revenue of $3.7B for the second quarter fiscal 2027 (Q2 FY27), -2% from a year earlier and +4% from the quarter before.
Was Gap profitable in the second quarter fiscal 2027?
Operating profit was $676M (18.5% of revenue) and net earnings $501M.
Source: Gap 10-Q on SEC EDGAR.