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SAN FRANCISCO - Gap Inc. (NYSE:GAP), America’s largest specialty apparel company with a market capitalization of $7.68 billion and annual revenue of $15.17 billion, announced Thursday a multi-year partnership with Google Cloud to implement artificial intelligence across its retail operations for Old Navy, Gap, Banana Republic, and Athleta brands. According to InvestingPro analysis, the company maintains a strong financial health score of GOOD, positioning it well for this technological transformation.
The collaboration aims to create a unified AI-powered platform using Google Cloud technologies including Gemini, Vertex AI and BigQuery. According to the company’s press release, the partnership will focus on three key areas: product innovation, customer experience, and employee empowerment. With a healthy current ratio of 1.68 and a track record of maintaining dividend payments for 50 consecutive years, Gap demonstrates the financial stability needed to support such technological investments. For detailed insights into Gap’s financial metrics and growth potential, InvestingPro subscribers can access comprehensive analysis and additional ProTips.
For product innovation, Gap Inc. plans to use AI tools to accelerate design, planning, and pricing processes. In customer experience, the retailer aims to develop personalized shopping experiences and smarter product recommendations. The company has already begun working with Google Ads to optimize marketing campaigns across channels.
Gap Inc. has also started implementing AI tools to support employee decision-making and execution processes.
"AI is redefining what’s possible in retail, and we’re building our future technology roadmap around it," said Sven Gerjets, Chief Technology Officer at Gap Inc., in the press release statement.
Thomas Kurian, CEO of Google Cloud, stated that the partnership aims to help Gap Inc. "lead the industry with speed, personalization, and game-changing customer experiences."
The announcement comes as retailers increasingly turn to technology solutions to enhance operations and customer engagement in a competitive market. Gap Inc. operates as America’s largest specialty apparel company with both physical stores and e-commerce platforms.
The company did not disclose financial terms or specific implementation timelines for the partnership.
In other recent news, Gap Inc. reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.57, compared to the forecasted $0.55. The company’s revenue matched estimates at $3.73 billion. Telsey Advisory Group has adjusted its price target for Gap Inc. to $24.00 from $26.00, citing tariff pressures that are expected to affect the company’s margins in the upcoming quarters. Meanwhile, Jefferies has maintained its Hold rating and a price target of $22.00, viewing Gap’s expansion into beauty and accessories as a strategic move that aligns with its transformation strategy.
In addition to financial updates, Gap Inc. announced the appointment of industry veterans to lead its beauty and accessories expansion, naming Deb Redmond as General Manager of Beauty and Michele Parsons as General Manager of Accessories. The company has also brought on John Demsey and Reed Krakoff as Executive Directors to provide strategic guidance in these categories. Furthermore, Gap Inc. has appointed Jody Gerson, CEO of Universal Music Publishing Group, to its Board of Directors, adding significant leadership experience from the music and entertainment industry. These developments reflect Gap’s ongoing efforts to diversify and strengthen its business operations.
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