Gap swings to FY26 Q2 net income of $501 million; net sales fall 2%

• Gap posted Q2 fiscal 2026 net income of $501 million; diluted EPS was $1.38.
• Operating income rose to $676 million; operating margin widened 10.7 percentage points to 18.5%.
• Net sales fell 2% to $3.65 billion; comparable sales slipped 1%.
• Gross margin widened 11.6 percentage points to 52.8%, including about $417 million of net IEEPA tariff recoveries.
• Management highlighted expansion in beauty and accessories, a revamped loyalty program, and continued technology investments.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Gap Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001628280-26-059345), on August 28, 2026, and is solely responsible for the information contained therein.