FIGS Raises 2026 Outlook as Revenue Growth and Margins Accelerate

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FIGS Raises Its 2026 Revenue Growth Target

FIGS now expects full-year 2026 net revenue growth of approximately 20%, up from its prior 14%-16% range. Management said the increase passes through the stronger first-half performance while also incorporating higher expectations for the second half.

The higher target points to broader confidence than a simple quarter-end reset. Still, the pace is expected to moderate later in the year, making delivery against the revised outlook an important test of whether the recent acceleration is durable.

FIGS Lifts Its Profitability Expectations

The company raised adjusted EBITDA margin guidance to 14.8%-15% from 13%-13.2%. It also increased its full-year operating margin outlook to approximately 10.8% from 7.8%-8%, including tariff-refund effects.

Those increases come even as FIGS expects to use airfreight to expedite certain products during supplier transitions. That added freight expense could pressure gross margin, but improved revenue leverage and operating efficiencies are supporting the higher profitability targets.

FIGS Q2 Strength Supports the Higher Outlook

Second-quarter revenues reached $196.6 million, up 28.8% year over year. Active customers increased 13.2% to 3.1 million, while average order value rose 8.5% to a record $127. Net revenues per active customer climbed 10.1% to a record $229.

Growth was not limited to core scrubwear. International revenues increased 67% and non-scrubwear revenues rose 40.3%, showing contributions from multiple parts of the business. Boot Barn Holdings, Inc. BOOT is a national lifestyle retailer focused on western and work-related footwear, apparel and accessories, providing a relevant comparison for work-oriented apparel demand. The Gap Inc. GAP, with brands including Old Navy, Gap, Banana Republic and Athleta, offers a broader consumer-apparel reference point for brand-led merchandising and retail execution.

FIGS Still Faces Second-Half Execution Risks

Management expects third-quarter revenue growth of approximately 20% and fourth-quarter growth of approximately 10%. The deceleration reflects tougher comparisons, including a 33% growth rate in the fourth quarter of 2025.

Supply-chain execution is another risk. A U.S. Customs and Border Protection withhold release order currently prevents FIGS from importing products into the United States from its partner in Jordan. The company is shifting production to other suppliers and expediting output, while planned airfreight adds cost and could weigh on margins.

FIGS Earnings Momentum Supports a Positive Signal

The raised outlook and positive estimate revisions support a favorable near-term earnings setup. FIGS currently carries a Zacks Rank #2 (Buy) and has a Momentum Score of A, a combination that points to favorable short-term momentum when used together. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The picture is less convincing across the other Style Scores. FIGS has a Growth Score of D, a Value Score of F and a VGM Score of F. The Value Score of F adds a clear valuation caution, indicating that the stock's valuation characteristics are less attractive even as near-term earnings momentum improves. Together with the Growth Score of D and VGM Score of F, that suggests stronger execution does not eliminate concerns about the price investors are paying for growth or the sustainability of that growth.

Valuation remains a consideration after the recent rally. FIGS trades at roughly 46.35 times trailing earnings based on its recent share price, a level that leaves less room for execution missteps.

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That premium can be supported if revenue growth and margin expansion remain durable, but it also reinforces the caution signaled by the stock's Value Score of F.

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This article originally published on Zacks Investment Research (zacks.com).

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