Gap, Inc.'s Q3 2025 earnings did not disappoint; in fact, they surpassed expectations with a reported EPS of $0.72, which beat the consensus estimate of $0.59, and a revenue of $3.82 billion, surpassing the expected $3.76 billion12. The company's net income increased by 26% year-over-year to $274.0 million, and its profit margin improved to 7.2% from 5.8% in the same period last year12.
The company's strong performance can be attributed to its focus on brand revitalization and operational rigor, as well as effective cost management. The company gained market share for the seventh consecutive quarter, with particular strength in its men's business and online sales3. Old Navy, Gap, Banana Republic, and Athleta, the company's key brands, all contributed to the positive results, with net sales and comparable sales growth in several categories3.
In conclusion, Gap, Inc.'s Q3 2025 earnings did not miss expectations; instead, they exceeded expectations with strong revenue and earnings growth, driven by effective brand management and cost control.