Gap Inc Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Gap Inc has an operating margin of 7.4%, meaning the company retains $7 of operating profit per $100 of revenue. This results in a moderate score of 37/100, indicating healthy but not exceptional operating efficiency. This is up from 3.8% the prior year.
Gap Inc's revenue grew a modest 1.3% year-over-year to $15.1B. This slow but positive growth earns a score of 32/100.
Gap Inc carries a low D/E ratio of 0.45, meaning only $0.45 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 94/100, indicating a strong balance sheet with room for future borrowing.
Gap Inc's current ratio of 1.71 indicates adequate short-term liquidity, earning a score of 48/100. The company can meet its near-term obligations, though with limited headroom.
Gap Inc has a free cash flow margin of 6.9%, earning a moderate score of 34/100. The company generates positive cash flow after capital investments, but with room for improvement.
Gap Inc earns a strong 25.4% return on equity (ROE), meaning it generates $25 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is up from 18.5% the prior year.
Gap Inc scores 2.97, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Gap Inc passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Gap Inc generates $1.76 in operating cash flow ($1.5B OCF vs $844.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Gap Inc earns $12.8 in operating income for every $1 of interest expense ($1.1B vs $87.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
This page shows Gap Inc (GAP) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Gap Inc generated $15.1B in revenue in fiscal year 2025. This represents an increase of 1.3% from the prior year.
Gap Inc's EBITDA was $1.6B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 49.0% from the prior year.
Gap Inc generated $1.0B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 6.6% from the prior year.
Gap Inc reported $844.0M in net income in fiscal year 2025. This represents an increase of 68.1% from the prior year.
Gap Inc earned $2.20 per diluted share (EPS) in fiscal year 2025. This represents an increase of 64.2% from the prior year.
Gap Inc held $2.0B in cash against $1.5B in long-term debt as of fiscal year 2025.
Gap Inc paid $0.60 per share in dividends in fiscal year 2025. This represents an increase of 0.0% from the prior year.
Gap Inc had 375M shares outstanding in fiscal year 2025. This represents an increase of 0.4% from the prior year.
Gap Inc's gross margin was 41.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.5 percentage points from the prior year.
Gap Inc's operating margin was 7.4% in fiscal year 2025, reflecting core business profitability. This is up 3.6 percentage points from the prior year.
Gap Inc's net profit margin was 5.6% in fiscal year 2025, showing the share of revenue converted to profit. This is up 2.2 percentage points from the prior year.
Gap Inc's ROE was 25.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 6.9 percentage points from the prior year.
Gap Inc invested $40.0M in research and development in fiscal year 2025. This represents an increase of 8.1% from the prior year.
Gap Inc spent $75.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Gap Inc invested $447.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 6.4% from the prior year.
GAP Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'24 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.9B+5.8% | $3.7B+7.6% | $3.5B-9.6% | $3.8B+2.9% | $3.7B+9.8% | $3.4B-21.2% | $4.3B+14.1% | $3.8B |
| Cost of Revenue | $2.3B+3.8% | $2.2B+8.6% | $2.0B-8.2% | $2.2B+2.7% | $2.1B+7.3% | $2.0B-24.2% | $2.6B+18.8% | $2.2B |
| Gross Profit | $1.7B+8.7% | $1.5B+6.1% | $1.4B-11.4% | $1.6B+3.3% | $1.6B+13.3% | $1.4B-16.4% | $1.7B+7.5% | $1.6B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $334.0M+14.4% | $292.0M+12.3% | $260.0M-26.8% | $355.0M+21.2% | $293.0M+42.9% | $205.0M-4.2% | $214.0M-14.4% | $250.0M |
| Interest Expense | $23.0M0.0% | $23.0M0.0% | $23.0M0.0% | $23.0M-4.2% | $24.0M+14.3% | $21.0M-12.5% | $24.0M-14.3% | $28.0M |
| Income Tax | $101.0M+26.3% | $80.0M+14.3% | $70.0M-19.5% | $87.0M-3.3% | $90.0M+80.0% | $50.0M+51.5% | $33.0M+3.1% | $32.0M |
| Net Income | $236.0M+9.3% | $216.0M+11.9% | $193.0M-29.6% | $274.0M+33.0% | $206.0M+30.4% | $158.0M-14.6% | $185.0M-15.1% | $218.0M |
| EPS (Diluted) | $0.62+8.8% | $0.57+11.8% | $0.51-29.2% | $0.72+33.3% | $0.54+31.7% | $0.41-16.3% | $0.49-15.5% | $0.58 |
GAP Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'24 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $12.4B+1.8% | $12.1B+5.0% | $11.6B-2.4% | $11.9B+3.0% | $11.5B+5.5% | $10.9B-1.2% | $11.0B-0.1% | $11.1B |
| Current Assets | $5.6B+4.9% | $5.4B+10.1% | $4.9B-4.8% | $5.1B+6.7% | $4.8B+14.6% | $4.2B-4.5% | $4.4B+0.5% | $4.4B |
| Cash & Equivalents | $2.3B+3.1% | $2.2B+11.0% | $2.0B+0.4% | $2.0B+3.6% | $1.9B+24.0% | $1.5B-18.2% | $1.9B+38.6% | $1.4B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $301.0M | N/A | N/A | N/A | N/A | N/A | $289.0M | N/A |
| Goodwill | $207.0M | N/A | N/A | N/A | N/A | N/A | $207.0M | N/A |
| Total Liabilities | $8.7B+0.1% | $8.7B+5.7% | $8.2B-5.4% | $8.7B+1.3% | $8.6B+5.0% | $8.2B-2.9% | $8.4B-1.7% | $8.6B |
| Current Liabilities | $3.3B+2.6% | $3.2B+12.0% | $2.9B-14.2% | $3.3B+3.1% | $3.2B+14.9% | $2.8B-9.4% | $3.1B-1.4% | $3.1B |
| Long-Term Debt | $1.5B0.0% | $1.5B+0.1% | $1.5B+0.1% | $1.5B0.0% | $1.5B0.0% | $1.5B+0.1% | $1.5B0.0% | $1.5B |
| Total Equity | $3.6B+6.2% | $3.4B+3.4% | $3.3B+5.9% | $3.1B+8.1% | $2.9B+7.2% | $2.7B+4.3% | $2.6B+5.5% | $2.5B |
| Retained Earnings | $3.5B+5.2% | $3.3B+4.9% | $3.2B+9.8% | $2.9B+8.1% | $2.7B+5.9% | $2.5B+4.2% | $2.4B+5.6% | $2.3B |
GAP Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'24 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $299.0M-33.3% | $448.0M+420.0% | -$140.0M-148.1% | $291.0M-47.0% | $549.0M+1730.0% | $30.0M-95.7% | $700.0M+130.3% | $304.0M |
| Capital Expenditures | $146.0M+49.0% | $98.0M+18.1% | $83.0M-43.9% | $148.0M+66.3% | $89.0M-4.3% | $93.0M-29.5% | $132.0M+48.3% | $89.0M |
| Free Cash Flow | $153.0M-56.3% | $350.0M+257.0% | -$223.0M-255.9% | $143.0M-68.9% | $460.0M+830.2% | -$63.0M-111.1% | $568.0M+164.2% | $215.0M |
| Investing Cash Flow | -$163.0M-79.1% | -$91.0M-24.7% | -$73.0M+51.7% | -$151.0M-12.7% | -$134.0M+54.0% | -$291.0M-122.1% | -$131.0M-44.0% | -$91.0M |
| Financing Cash Flow | -$66.0M+52.5% | -$139.0M+9.2% | -$153.0M-121.7% | -$69.0M-46.8% | -$47.0M+39.0% | -$77.0M-51.0% | -$51.0M+75.4% | -$207.0M |
| Dividends Paid | $62.0M0.0% | $62.0M+1.6% | $61.0M+7.0% | $57.0M+1.8% | $56.0M0.0% | $56.0M0.0% | $56.0M+1.8% | $55.0M |
| Share Buybacks | $0-100.0% | $82.0M+17.1% | $70.0M | $0 | $0 | $0 | $0 | $0 |
GAP Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'24 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.4%+1.1pp | 41.2%-0.6pp | 41.8%-0.9pp | 42.7%+0.2pp | 42.5%+1.3pp | 41.2%+2.3pp | 38.9%-2.4pp | 41.3% |
| Operating Margin | 8.5%+0.6pp | 7.8%+0.3pp | 7.5%-1.8pp | 9.3%+1.4pp | 7.9%+1.8pp | 6.0%+1.1pp | 5.0%-1.7pp | 6.6% |
| Net Margin | 6.0%+0.2pp | 5.8%+0.2pp | 5.6%-1.6pp | 7.2%+1.6pp | 5.5%+0.9pp | 4.7%+0.4pp | 4.3%-1.5pp | 5.8% |
| Return on Equity | 6.5%+0.2pp | 6.3%+0.5pp | 5.8%-2.9pp | 8.7%+1.6pp | 7.1%+1.3pp | 5.8%-1.3pp | 7.1%-1.7pp | 8.9% |
| Return on Assets | 1.9%+0.1pp | 1.8%+0.1pp | 1.7%-0.6pp | 2.3%+0.5pp | 1.8%+0.3pp | 1.5%-0.2pp | 1.7%-0.3pp | 2.0% |
| Current Ratio | 1.72+0.0 | 1.68-0.0 | 1.71+0.2 | 1.54+0.1 | 1.490.0 | 1.50+0.1 | 1.42+0.0 | 1.39 |
| Debt-to-Equity | 0.41-0.0 | 0.43-0.0 | 0.45-0.0 | 0.47-0.0 | 0.51-0.0 | 0.55-0.0 | 0.57-0.0 | 0.60 |
| FCF Margin | 3.9%-5.5pp | 9.4%+15.8pp | -6.4%-10.2pp | 3.7%-8.6pp | 12.4%+14.2pp | -1.9%-15.1pp | 13.2%+7.5pp | 5.7% |
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Frequently Asked Questions
What is Gap Inc's annual revenue?
Gap Inc (GAP) reported $15.1B in total revenue for fiscal year 2025. This represents a 1.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Gap Inc's revenue growing?
Gap Inc (GAP) revenue grew by 1.3% year-over-year, from $14.9B to $15.1B in fiscal year 2025.
Is Gap Inc profitable?
Yes, Gap Inc (GAP) reported a net income of $844.0M in fiscal year 2025, with a net profit margin of 5.6%.
What is Gap Inc's earnings per share (EPS)?
Gap Inc (GAP) reported diluted earnings per share of $2.20 for fiscal year 2025. This represents a 64.2% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Gap Inc's EBITDA?
Gap Inc (GAP) had EBITDA of $1.6B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Gap Inc have?
As of fiscal year 2025, Gap Inc (GAP) had $2.0B in cash and equivalents against $1.5B in long-term debt.
What is Gap Inc's gross margin?
Gap Inc (GAP) had a gross margin of 41.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Gap Inc's operating margin?
Gap Inc (GAP) had an operating margin of 7.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Gap Inc's net profit margin?
Gap Inc (GAP) had a net profit margin of 5.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Gap Inc pay dividends?
Yes, Gap Inc (GAP) paid $0.60 per share in dividends during fiscal year 2025.
What is Gap Inc's return on equity (ROE)?
Gap Inc (GAP) has a return on equity of 25.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Gap Inc's free cash flow?
Gap Inc (GAP) generated $1.0B in free cash flow during fiscal year 2025. This represents a -6.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Gap Inc's operating cash flow?
Gap Inc (GAP) generated $1.5B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Gap Inc's total assets?
Gap Inc (GAP) had $11.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Gap Inc's capital expenditures?
Gap Inc (GAP) invested $447.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Gap Inc spend on research and development?
Gap Inc (GAP) invested $40.0M in research and development during fiscal year 2025.
Does Gap Inc buy back shares?
Yes, Gap Inc (GAP) spent $75.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Gap Inc have outstanding?
Gap Inc (GAP) had 375M shares outstanding as of fiscal year 2025.
What is Gap Inc's current ratio?
Gap Inc (GAP) had a current ratio of 1.71 as of fiscal year 2025, which is generally considered healthy.
What is Gap Inc's debt-to-equity ratio?
Gap Inc (GAP) had a debt-to-equity ratio of 0.45 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Gap Inc's return on assets (ROA)?
Gap Inc (GAP) had a return on assets of 7.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Gap Inc's Altman Z-Score?
Gap Inc (GAP) has an Altman Z-Score of 2.97, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Gap Inc's Piotroski F-Score?
Gap Inc (GAP) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Gap Inc's earnings high quality?
Gap Inc (GAP) has an earnings quality ratio of 1.76x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Gap Inc cover its interest payments?
Gap Inc (GAP) has an interest coverage ratio of 12.8x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Gap Inc?
Gap Inc (GAP) scores 58 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.