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

Gap reported Q1 2026 revenue of $3.5 billion, up only 1% year-over-year, missing analyst expectations and leading to a lowered full-year sales forecast. Key segments like Old Navy and Athleta underperformed, causing the stock to fall 15.4% on May 29. Pomerantz LLP has launched an investigation into whether Gap and its executives engaged in securities fraud or unlawful practices, potentially impacting investors. The outcome could affect shareholder claims and company reputation going forward.