• In the first quarter of 2026, FIGS, Inc. reported US$159.9 million in sales, up from US$124.9 million a year earlier, and moved from a small net loss to a US$6.29 million net profit with diluted EPS of US$0.03.
• The company also raised its full-year 2026 net revenue growth outlook to 14%–16%, reflecting management’s confidence in its product, marketing, and global expansion efforts despite tariff and freight cost headwinds.
• With FIGS lifting its 2026 revenue growth guidance, we’ll now examine how this upgraded outlook reshapes the company’s investment narrative.

Find 51 companies with promising cash flow potential yet trading below their fair value.

FIGS Investment Narrative Recap

To own FIGS, you need to believe its direct to consumer model can keep converting healthcare professionals into loyal, repeat buyers while protecting margins. The upgraded 2026 revenue growth outlook makes near term execution on product, marketing, and global expansion the key catalyst, while tariffs and freight costs remain the biggest risk. The latest results improve confidence in that catalyst but do not remove the margin pressure risk.

Among recent announcements, the raised 2026 net revenue growth guidance to 14% to 16% is most relevant here, as it directly reflects management’s response to Q1’s strong sales and profitability. It ties the near term story to whether FIGS can sustain demand without leaning too heavily on promotions, a point that sits right at the intersection of growth catalysts and the risk of demand softening if healthcare professionals push back on premium pricing.

Yet beneath the headline revenue beat and higher guidance, FIGS still faces tariff and freight cost pressures that investors should be aware of if...

FIGS' narrative projects $802.8 million revenue and $67.4 million earnings by 2029.

Uncover how FIGS' forecasts yield a $17.75 fair value, a 51% upside to its current price.

Exploring Other Perspectives

Some of the lowest analysts were assuming FIGS would only grow revenue to about US$621.8 million by 2028 and keep earnings near US$40 million, which is far more pessimistic than a catalyst narrative built on international expansion and omnichannel gains. After this Q1 beat and guidance hike, those cautious views could shift, so it is worth weighing how your expectations line up with both sets of assumptions.

Explore 4 other fair value estimates on FIGS - why the stock might be worth as much as 87% more than the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your FIGS research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free FIGS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FIGS' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.