Key Takeaways
- FIGS shares are up 12% in a week after third-quarter revenue grew 25.7% and the company raised its full-year outlook.
- The margin gain came from expenses growing slower than sales, with little help from tariff refunds, which is the test the stock needed to pass.
- Analysts now expect 2027 EPS of $0.42, up from $0.38 before the report but barely above 2026’s $0.41.
- The raise holds up, but at this price FIGS’s first 2027 outlook has to lift estimates again.
FIGS (FIGS) stock is up 12% in the past week, and nearly all of it traces back to the third-quarter report it released after the close on Nov. 5.
The scrubs maker posted its fourth straight quarter of revenue growth above 25% and raised its outlook. Barclays lifted its price target to $28 and KeyBanc to $27. Then on Nov. 10, Cantor Fitzgerald initiated coverage at Overweight with a $25 target.
The margin came from the right place
Revenue rose 25.7% to $190.7 million, and active customers grew 14.3% to 3.2 million. FIGS now expects about 24% growth for 2026, up from about 20%, and an adjusted EBITDA margin of about 15.8%, up from about 14%. It also guides fourth-quarter growth to about 15%, after guiding to about 10% in August.
The bigger deal is where the margin came from. Going into the report, FIGS needed a wider operating margin that didn’t lean on tariff refunds, because refunds had padded its second quarter. It delivered. Gross margin slipped 60 basis points to 69.3%, while operating expenses fell to 57.6% of revenue from 63.6% on fixed-cost leverage. That leaves an operating margin near 12%, nearly double last year’s third quarter. Refunds gave the quarter only a small lift of about $1.9 million, roughly 1 point of margin.
TIKR tracks 9 analysts on FIGS. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on FIGS, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See FIGS’s Analyst Ratings
Investors are already paying for more
CEO Trina Spear said in the release that FIGS has “a foundation for sustainable top- and bottom-line momentum as we look ahead to 2027.” Analysts’ normalized EPS estimates show how far they’ve followed her:
That 2027 figure was $0.38 before the report. But $0.42 is barely above 2026’s $0.41, and 2026 includes tariff refunds that 2027 won’t have.
Investors are paying up anyway, at about 56x forward earnings:
That’s below its five-year average of 77x, which was set when FIGS earned a fraction of what it does now. It’s also well above September’s 40x. And the stock sits right around the Street’s average target of $23.
Supply is the near-term risk. Management said on the call that U.S. Customs blocked imports from its Jordanian supplier in June. Moving production away from that supplier caused stockouts late in the quarter, and management expects the effects to last into the second quarter of 2027.
The raised outlook holds up. But at 56x, investors are already paying for 2027 estimates that keep climbing. I’d wait for FIGS’s first 2027 outlook, likely in late February, to show double-digit growth before buying more here.
So what is FIGS stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
