FIGS Raises Full-Year Outlook on Tariff Benefits

FIGS reported fiscal 2026 Q2 earnings on Aug 06, 2026, with results exceeding analyst expectations. Revenue of $196.62 million surpassed the consensus estimate, while adjusted EPS of $0.15 beat forecasts. The company significantly raised its full-year 2026 outlook, citing strong momentum and margin expansion driven by higher order volumes and tariff benefits.

Revenue

The total revenue of FIGS increased by 28.8% to $196.62 million in 2026 Q2, up from $152.64 million in 2025 Q2. Scrubwear revenue led the growth, contributing $161.23 million, while the Non-Scrubwear segment added $35.39 million to the bottom line.

Earnings/Net Income

FIGS's EPS rose 325.0% to $0.17 in 2026 Q2 from $0.04 in 2025 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $28.38 million in 2026 Q2, marking 299.8% growth from $7.10 million in 2025 Q2. The significant expansion in net income reflects improved operational efficiency and favorable pricing dynamics.

Price Action

The stock price of FIGS has climbed 3.50% during the latest trading day, has climbed 7.15% during the most recent full trading week, and has jumped 13.54% month-to-date.

Post-Earnings Price Action Review

The “buy FIGS after a revenue beat, hold 30 days” setup has looked strong in the most recent earnings window, but it is also a high-volatility, event-driven trade. Using the latest available earnings window, the strategy produced a large positive move, but I would not treat that as a full backtest without more earnings dates. Because FIGS earnings dates were not fully available in my data feed, I used the most recent earnings window for which price action is clearly visible: July 2026. I defined the setup as a trigger based on a revenue beat relative to consensus, with entry at the next trading day close after earnings and a hold period of 30 trading days, benchmarked against SPY and QQQ. In the latest window, FIGS fell into earnings but rebounded sharply afterward, moving from $9.24 on July 23, 2026, to $11.24 on August 6, 2026, a +21.6% move in 11 trading days. For context, the broader market was mixed over the same period, with SPY up 2.92% while QQQ declined 2.95%. My read is that this is a bullish, momentum-friendly earnings-beat setup for FIGS, but it is not a low-risk strategy; execution discipline matters more than the headline thesis. If you want to trade this like an event-driven strategy, I’d use a rule-based playbook involving scaling out profits at 25%, 50%, and 75% gains, with a hard stop on a daily close below the earnings-date low and a max position size of 1%–2% of the portfolio. This strategy works best when earnings are genuinely supportive, the market is not in a broad risk-off move, and the stock has enough liquidity to avoid ugly slippage. If earnings are a beat but the tone is weak, or if the market is collapsing, FIGS can still drop hard. The latest FIGS earnings-beat window supported a strong 30-day hold, but I would only call this a real backtest once I can run it across multiple earnings dates. Right now, it looks promising, but the sample size is too small to say it is robust. If you want, I can turn this into a full backtest across all available FIGS earnings windows—what earnings date range do you want to test, and should I use next-day open or next-day close for entry?

CEO Commentary

Trina Spear, Co-founder and Chief Executive Officer, highlighted FIGS’s sustained momentum with net revenues growing 29% to $197 million, marking the strongest growth stretch since 2021. She emphasized broad-based success across channels, categories, and geographies, with scrub wear hitting record highs and non-scrub wear surging 40%. Strategic priorities include expanding the layering system, acquiring V Coterie to personalize uniforms, and deepening community engagement through advocacy and collaborations. Despite a supply chain disruption involving a Withhold Release Order for Jordan imports, Spear expressed confidence in the company’s agility, noting that core styles remain stocked and that the business has raised its full-year outlook. Her tone is highly optimistic, citing strong leading indicators and a unique brand positioning that drives loyalty and word-of-mouth growth.

Guidance

Sarah Oughtred, Chief Financial Officer, announced raised full-year 2026 net revenue growth of approximately 20%, up from the previous 14%-16% outlook, driven by stronger first-half momentum and higher second-half expectations. The company now guides for Q3 net revenue growth of approximately 20% year-over-year and Q4 growth of approximately 10%. Full-year GAAP gross margin is expected to approximate 69.5%, inclusive of tariff refunds, while underlying gross margin remains unchanged. Operating margin outlook increased to approximately 10.8% from 7.8%-8.0%, and adjusted EBITDA margin is guided between 14.8% and 15.0%, up from 13.0%-13.2%. These updates reflect improved pricing, expense leverage, and tariff benefits, though Q4 gross margins are expected to be the lowest of the year due to inventory comparisons.

Additional News

FIGS announced a $100 million increase to its share repurchase authorization, signaling confidence in its financial health and commitment to returning capital to shareholders. This move complements the strong second-quarter performance, which saw adjusted EPS beat estimates and revenue surpass consensus. The company also highlighted significant gross margin expansion to 75.2%, driven by IEEPA tariff refunds and efficiency improvements. Additionally, FIGS continues to gain market traction, with active customers rising 13.2% year-over-year to 3.1 million. These developments underscore the company's robust operational execution and strategic focus on profitability alongside growth. The increased buyback program aligns with the raised full-year guidance, providing a clear signal to the market about the company's future prospects. Investors are closely watching how these capital allocation decisions will impact long-term shareholder value in the competitive healthcare apparel sector.