Gap faces securities fraud investigation after Q1 revenue misses expectations and stock drops 15%.

Pomerantz LLP is investigating potential securities fraud claims against The Gap Inc. following the company's Q1 2026 financial report, which showed only a 1% revenue increase to $3.5 billion, missing analyst expectations. Key segments like Old Navy and Athleta underperformed, leading Gap to lower its full-year sales guidance. The stock price fell 15.4% to $21.15 per share after the announcement. The investigation will determine if Gap's officers or directors engaged in unlawful business practices, with affected investors encouraged to join the class action lawsuit.