Figs (NYSE:FIGS) shares surged 27.7% in premarket trading after the healthcare apparel company reported second-quarter 2026 results that comfortably exceeded Wall Street expectations. Strong earnings, accelerating revenue growth and improved profitability prompted management to raise its outlook for the full year and expand its share repurchase programme.
The results reinforced investor confidence that the company is delivering both robust sales growth and improving operational efficiency.
Earnings and Revenue Beat Expectations
Figs reported adjusted earnings of $0.15 per share, more than double analysts’ consensus estimate of $0.07.
Quarterly revenue reached $196.6 million, exceeding Wall Street expectations of $186.1 million and representing year-over-year growth of 28.8%. The performance marked the third consecutive quarter in which revenue increased by more than 25%.
Management also lifted its full-year 2026 revenue growth forecast to approximately 20%, compared with its previous guidance of 14% to 16%.
In addition, the company authorised a further $100 million for its share buyback programme.
Profitability Reaches New Highs
The second quarter also delivered record profitability.
Gross margin expanded to 75.2%, an improvement of 820 basis points compared with the same period last year.
Operating margin increased to 17.9%, up from 6.5% a year earlier, reflecting stronger operating leverage as revenue continued to grow.
Free cash flow also improved significantly, reaching $44.26 million after recording negative free cash flow of $13.52 million in the second quarter of 2025.
Customer Growth Supports Momentum
Figs continued to expand its customer base during the quarter, with active customers increasing 13% year over year to 3.1 million.
Average order value also reached a record $127, highlighting continued strength in customer spending alongside rising profitability.
Together, these metrics suggested the company is successfully scaling its business while maintaining healthy margins.
Strong Fundamentals Drive Share Price Higher
The broader US market was relatively subdued ahead of the closely watched July nonfarm payrolls report, with the S&P 500 edging 0.1% higher and the Nasdaq rising around 0.5%.
Against that backdrop, Figs’ sharp premarket rally reflected company-specific developments rather than broader market sentiment.
The combination of a substantial earnings beat, record margins, stronger free cash flow, an upgraded full-year outlook and an expanded share repurchase programme encouraged investors to revalue the stock, pushing shares sharply higher while still leaving them below their 52-week high of $17.48.
Figs stock price
