🟢 The Gap is trading 7.9% up in after-hours trading after profit beat and raised earnings guidance

The Gap is trading 7.9% up at $22.47 in after-hours trading after its August 27, 2026, second-quarter earnings release, as adjusted profit exceeded expectations and management raised full-year earnings guidance.

• Revenue slightly missed expectations, while Old Navy sales declined 4%.
• Management narrowed its revenue outlook; the Gap brand delivered double-digit growth.
• The earnings beat and improved profit outlook appear to be driving the after-hours rally despite mixed operating results.