Gap raises FY2026 GAAP EPS guidance to $3.77-$3.87

Gap Inc. announced Michael Francis will become Old Navy’s CEO on Nov. 2, taking over from Haio Barbeito, as the retailer seeks to reverse sluggish Old Navy performance where second-quarter sales fell and traffic slowed. CEO Richard Dickson described the transition as planned and said the company will continue its strategy while accelerating select initiatives to improve core results and brand momentum. Old Navy’s quarterly results showed a decline in net and comparable sales, highlighting a softer summer marketing message and the brand’s outsized impact on Gap’s overall revenue. Separately, investors are positioning ahead of Gap’s Q2 2026 earnings due Aug. 27, with expectations for about $0.48 per share on roughly $3.69 billion in revenue, and multiple analysts reiterating views on the company’s mid- to long-term guidance. The stock movement around the report date is being driven by earnings anticipation rather than major new company announcements, with insiders including Old Navy leadership showing notable selling activity in the months leading up to the results. Several previews reiterate Gap’s full-year guidance and highlight contrasts between improved brand execution and ongoing margin considerations.