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    How Earnings Beat Will Impact FIGS (FIGS) Stock

    Simply Wall St·11/14/2026 09:35:57
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    • FIGS reported third quarter 2026 sales of US$190.69 million and net income of US$19.28 million, alongside raised full year 2026 revenue growth guidance and a new fourth quarter outlook, while European Wax Center announced a new TEAMS uniform partnership with the brand.
    • The combination of stronger quarterly earnings metrics and the European Wax Center TEAMS deal highlights how FIGS is relying on both direct to consumer scale and institutional partnerships to broaden reach and support its margin focused model.
    • Attention now shifts to how FIGS’ stronger third quarter profitability and upgraded full year revenue guidance affect the existing investment narrative.
    Capitalize on FIGS' stronger earnings and new TEAMS partnership by reviewing hand picked peers with similar quality traits across healthcare and consumer brands in the 20 high quality undiscovered gems.

    FIGS Investment Narrative Recap

    To own FIGS, you need to accept a consumer brand that is still investing heavily in direct to consumer reach while aiming for steadier profitability. julio, a Simply Wall St Community investor who wrote the Narrative, argues that the big picture is about margin improvement built on operating cost leverage and a focused healthcare niche.

    The latest quarter shows that FIGS is currently profitable with net income of US$19.28 million in Q3 and US$53.95 million over nine months. Raised full year revenue growth guidance and a specific fourth quarter outlook sharpen the near term catalyst around execution. The main immediate risk remains execution against higher expectations.

    The European Wax Center TEAMS partnership is the announcement that matters most here. TEAMS has been flagged by julio as a key lever, and this deal puts that theory into practice with a national customer that needs consistent uniforms and values function, comfort and brand alignment for its specialists.

    For you as an investor, this deal tests whether FIGS can translate its healthcare focused reputation into broader professional wear while keeping its brand credible. It also puts some weight on FIGS’ ability to handle bulk orders without pressuring product quality or margins, which ties directly back to the current catalyst and execution risk story.

    Based on julio’s numbers, the FIGS narrative points to a fair value of US$14.39, built on an 11.0% yearly revenue growth path and a future profit margin of 9.0%. Together these assumptions frame a business that he views as moving toward steadier profitability on a larger sales base over time.

    Uncover why FIGS' fair value indicates a 35% potential downside to its current price, leaving little room for error.

    NYSE:FIGS 1-Year Stock Price Chart
    NYSE:FIGS 1-Year Stock Price Chart

    Exploring Other Perspectives

    One bearish twist on FIGS focuses on demand risk rather than execution. The lowest analysts were assuming only 10.6% annual revenue growth and profit margins easing to 8.0%, with earnings of about US$76.6 million by 2029. Those views were set before this earnings beat and TEAMS news, so the story may shift.

    Explore 4 other FIGS fair value estimates, including one that suggests as much as 35% downside from the current price.

    Form Your Own Verdict

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so consider your own analysis carefully.

    Looking for more FIGS-like investment ideas?

    If FIGS has sharpened your focus on quality, pricing power and clearer profitability paths, then it can help to widen the lens and compare it with other businesses screened on fundamentals, balance sheet strength and risk.