FIGS Inc. Stock Rockets 24% on Blowout Q4 Earnings, Raised Guidance and Analyst Upgrades Signal Turnaround

Shares of FIGS Inc. (NYSE: FIGS), the direct-to-consumer healthcare apparel brand known for stylish scrubs and medical wear, surged more than 23% on February 27, 2026, closing at $15.45 after the company delivered record fourth-quarter results that crushed expectations and provided optimistic guidance for 2026.

The rally marked FIGS’ strongest single-day gain in years, pushing the stock to a nearly four-year high of $15.90 intraday on volume exceeding 26 million shares — well above average. The performance followed the February 26 after-hours release of fiscal fourth-quarter and full-year 2025 earnings, which highlighted accelerating growth, margin expansion and international momentum.

For the quarter ended December 31, 2025, FIGS reported net revenues of $201.9 million, a 33.0% increase from the prior year and far surpassing analyst estimates around $165 million to $166 million. Scrubwear sales led the way, rising 35.1% to $154.9 million, while non-scrubwear revenue grew 26.4% to $47 million. Geographically, U.S. revenue climbed 28.7% to $164.2 million, and international revenue soared 55.1% to $37.7 million, reflecting successful expansion efforts.

Profitability improved dramatically. Net income reached $18.5 million, or $0.10 per diluted share, compared to $1.9 million, or $0.01 per share, a year earlier — beating consensus forecasts of $0.02. Adjusted EBITDA hit $26.7 million with a 13.2% margin, up significantly year over year. Gross margin held strong at 63.0%, supported by efficient supply chain management and higher average order values.

Full-year 2025 results showed net revenues of $631.1 million, up 14% from 2024, with active customers surpassing 2.9 million — a 9% increase. Adjusted EBITDA margin expanded to 11.8% from 9.3%, and net income rose to $34.3 million.

CEO Catherine Spear called the quarter “the culmination of clear strategic focus and disciplined execution,” noting momentum built throughout the year. Management highlighted product innovation, marketing efficiency and international growth as key drivers.

For fiscal 2026, FIGS guided net revenues of approximately $700 million — implying 10% to 12% growth — with adjusted EBITDA margin expansion to around 12.8% from 11.8%. The outlook assumes continued double-digit gains in core scrubwear and international markets.

Analysts responded swiftly with upgrades and target hikes. Barclays upgraded from Equal Weight to Overweight, citing a return to growth. Goldman Sachs moved from Sell to Neutral, lifting its price target to $14 from $7.50. KeyBanc shifted to Overweight from Sector Weight with a $17 target. Roth Capital raised its target to $15.50 from $12, and Telsey Advisory increased to $15 from $9 while maintaining Hold. Consensus targets now cluster around $14 to $17, suggesting 10-20% upside from recent levels.

The stock had languished earlier in 2026, trading near $10-$11 amid concerns over slowing U.S. demand and margin pressure post-pandemic. The Q4 beat and guidance shift reframed the narrative, with investors betting on sustained momentum in a $100 billion+ global medical apparel market.

FIGS operates as a digitally native brand, selling premium scrubs, lab coats and accessories directly to healthcare professionals. Its focus on performance fabrics, inclusive sizing and modern designs differentiates it from traditional uniform providers. International expansion — particularly in Europe and Asia — and new product categories offer growth levers.

Challenges include competition from legacy players and economic sensitivity among healthcare workers. Yet strong cash flow, a debt-free balance sheet and improving profitability bolster the outlook.

The post-earnings surge reflects renewed confidence in FIGS’ turnaround story. As the company eyes 2026 milestones like further international penetration and margin gains, the healthcare apparel specialist appears positioned for continued momentum.