Gap (GAP) EBIT: $1,353 Mil (TTM As of Apr. 2026)

What is Gap EBIT?

Gap GAP -3.49% 72 EBIT is $1,353 Mil as of Apr. 2026. GuruFocus rates GAP with a GF Score™ of 72/100 and a GF Value™ of $22.53 (Modestly Undervalued). The stock has 3 warning signs investors should review.

Gap's earnings before interest and taxes (EBIT) for the three months ended in Apr. 2026 was $445 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2026 was $1,353 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Gap's annualized ROC % for the quarter that ended in Apr. 2026 was 17.86%. Gap's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 28.52%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Gap's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 13.07%.

Gap (NYSE:GAP) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Gap's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

	ROC % (Q: Apr. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2026 )	+	Invested Capital (Q: Apr. 2026 ))	/ count )
=	1780 * ( 1 - 24.67% )	/	( (7489	+	7529)	/ 2 )
=	1340.874	/	7509
=	17.86 %

where

	Invested Capital		(Q: Jan. 2026 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	12632	-	2666	-	( 3002	-	max(0, 3300	-	5777	+	3002	))
=	7489

	Invested Capital		(Q: Apr. 2026 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	12137	-	2270	-	( 2561	-	max(0, 2901	-	5239	+	2561	))
=	7529

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Gap's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Apr. 2026 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jan. 2026		Q: Apr. 2026
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1780	/	( ( (5950 + max(109, 0))	+	(6015 + max(408, 0)) )	/	2 )
=	1780	/	( ( 6059	+	6423 )	/	2 )
=	1780	/	6241
=	28.52 %

where Working Capital is:

	Working Capital		(Q: Jan. 2026 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(316	+	2207	+	252)	-	(2666	+	272	+	-272)
=	109

	Working Capital		(Q: Apr. 2026 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	2095	+	583)	-	(2270	+	0	+	0)
=	408

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Gap's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Apr. 2026 )
	=	1353	/	10348.973
	=	13.07 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Gap EBIT Related Terms

Gap EBIT Historical Data

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The historical data trend for Gap's EBIT can be seen below:

Gap EBIT Chart

Gap Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Jan25

Jan26

EBIT

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490.00

-51.00

646.00

1,224.00

1,115.00

Gap Quarterly Data
	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Jan25	Apr25	Jul25	Oct25	Jan26	Apr26
EBIT	Get a 7-Day Free Trial															286.00	319.00	360.00	229.00	445.00

GAP vs URBN, BOOT, VSCO: EBIT Comparison

For the Apparel Retail subindustry, Gap's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Gap EV-to-EBIT vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Gap's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Gap's EV-to-EBIT falls into.

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72GF Score

Gap Inc GAP

EBIT is just one metric. See GF Score™, valuation, warning signs, and more.

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Gap EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,353 Mil.

Frequently Asked Questions Learn more about EBIT →

What does a EBIT of $1,353 Mil mean?

Gap (GAP) has a EBIT of $1,353 Mil as of Apr. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Gap.

Is Gap's EBIT too high?

Gap's current EBIT is $1,353 Mil. Overall, Gap has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Gap's EBIT compare to URBN and BOOT?

Gap's EBIT of $1,353 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good EBIT for a Retail - Cyclical company?

A good EBIT depends on the Retail - Cyclical industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high EBIT mean?

A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Gap. Gap's current EBIT is $1,353 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Gap stock overvalued right now?

Based on GuruFocus' analysis, Gap (GAP) is currently considered Modestly Undervalued. The stock's GF Value™ is $22.53, compared to a current price of $20.19 — trading 10.4% below its estimated fair value. The current EBIT is $1,353 Mil. Gap's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is EBIT calculated?

EBIT is calculated from a company's financial statements. For Gap (GAP), the current EBIT is $1,353 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Gap (GAP) Overvalued in 2026?

Based on GuruFocus' analysis, Gap stock appears to be undervalued. The current stock price of $20.19 is trading 10.4% below its estimated GF Value™ of $22.53. GuruFocus considers Gap to be Modestly Undervalued.

Key valuation signals for GAP:

EBIT: $1,353 Mil
GF Value™: $22.53 vs. price of $20.19 (10.4% below fair value)
GF Score™: 72/100 with 3 warning signs

No single metric tells the full story. See the GAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Gap Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies URBN BOOT VSCO ANF AEO BKE CRI CAL SFIX SCVL XMAD:ITX TJX TSE:9983 ROST BURL LSE:NXT BOM:500251 LULU TSX:ATZ TSX:GRGD

Other Exchanges GAP1:Mexico 0ITS:UK GAP:Germany GPSI34:Brazil

Address Two Folsom Street, San Francisco, CA, USA, 94105

Website https://www.gapinc.com

Gap retails apparel, accessories, footwear, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates approximately 2,500 stores in North America, Europe, and Asia and franchises about 1,000 more in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.

72GF Score

Get the complete analysis for GAP

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$20.19

Price

$22.53

GF Value

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