Filing Flows › Gap (GAP) › How it makes money
How Gap (GAP) makes money
Gap (GAP) made $3.7B of revenue in the second quarter fiscal 2027 (Q2 FY27), -2% from a year earlier. Of every dollar of revenue, 53¢ was left as gross profit, 19¢ was left as operating profit, 14¢ was left as net earnings.
Drawing the Sankey…
Where each dollar of revenue goes
| Line | Q2 FY27 | % of revenue |
|---|---|---|
| Revenue | $3.7B | 100.0% |
| Cost of revenue | $1.7B | 47.2% |
| Gross profit | $1.9B | 52.8% |
| Operating expenses | $1.3B | 34.3% |
| Operating profit | $676M | 18.5% |
| Income tax | $179M | 4.9% |
| Net earnings | $501M | 13.7% |
| Operating cash flow | $337M | 9.2% |
| Free cash flow | $183M | 5.0% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q2 FY27 | $3.7B | -2% |
| Q1 FY27 | $3.5B | +1% |
| Q4 FY26 | $4.2B | +2% |
| Q3 FY26 | $3.9B | +3% |
| Q2 FY26 | $3.7B | +0.1% |
| Q1 FY26 | $3.5B | +2% |
| Q4 FY25 | $4.1B | -4% |
From Gap's 10-Q filed Aug 28, 2026 (on EDGAR).
Questions
How does Gap make money?
Gap (GAP) made $3.7B of revenue in the second quarter fiscal 2027 (Q2 FY27), -2% from a year earlier. Of every dollar of revenue, 53¢ was left as gross profit, 19¢ was left as operating profit, 14¢ was left as net earnings.
What is Gap's profit margin?
Net earnings were $501M, 13.7% of revenue, in the second quarter fiscal 2027; the operating margin was 18.5%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.