Gap shares are exploding higher following the company's second-quarter earnings report released after the market closed yesterday, where the retailer beat profit expectations with $0.52 EPS against a $0.50 consensus. Investors are reacting positively to the company's decision to name industry veteran Michael Francis as the new CEO of its Old Navy brand, a move intended to revitalize the company's largest segment. This leadership change, combined with management's decision to raise full-year fiscal 2026 earnings guidance and improved cost discipline, has prompted analysts to upgrade the stock to a Buy.