Gap Inc ( GAP ) shares are surging Friday after the company company beat third‑quarter expectations and lifted its full‑year sales outlook beyond what analysts had projected.

GAP shares are climbing with conviction. See the full story here.

What Happened: Gap’s third-quarter earnings of 62 cents per share exceeded the analyst consensus of 59 cents by 5.62%.

Gap posted quarterly revenue of $3.94 billion, a little over analyst expectations of $3.91 billion, marking a 2.95% increase from the $3.83 billion it reported the previous year.

The company also raised its full‑year 2025 sales forecast range to $15.36 billion and $15.40 billion, surpassing Wall Street's consensus of $15.32 billion.

President and CEO Richard Dickson stated, “We are proud to report that Gap Inc.’s third-quarter results exceeded our net sales and margin expectations and delivered the seventh consecutive quarter of positive comparable sales.”

Dickson added, “The strength of our third-quarter and quarter-to-date performance positions us well for the holiday selling season and gives us the confidence to increase our full year net sales outlook to the high end of our prior guidance range and raise our full year operating margin outlook.”

After the earnings report, Wall Street analysts ticked their price targets higher. Morgan Stanley's Alex Straton kept an Overweight rating and bumped his target to $31 from $30, while Evercore ISI's Michael Binetti stuck with an Outperform and lifted his target to $28 from $25.

Bank of America's Lorraine Hutchinson held a Neutral stance but raised her target to $27 from $23. Baird's Mark Altschwager also stayed Neutral, moving his target to $27 from $26. Meanwhile, Telsey Advisory's Dana Telsey maintained Market Perform and inched her target up to $26 from $24.

GAP Price Action: Gap shares were up 9.58% at $25.27 at the time of publication on Friday, according to Benzinga Pro.

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