Revolve Group (RVLV) delivered "solid" Q4 results but its weaker-than-expected 2026 margin guidance could weigh on near-term optimism, Morgan Stanley said in a Wednesday note.

Morgan Stanley noted that the company's Q4 revenue growth of 10% year over year outperformed its 3% forecast, adding that Q1-to-date growth of 16% also exceeds expectations.

Revolve Group is aiming to return to more than a double-digit growth in 2026 and Morgan Stanley said its growth algorithm of durable net adds, improved retention, category expansion, and technology improvements should support "consistent high-teens to low-20s" revenue growth this year.

The company's initial gross margin and marketing guidance, however, offset the company's revenue beat, Morgan Stanley said, noting that the margin outlook could "prove conservative."

Morgan Stanley reiterated Revolve Group's equalweight rating and lifted its price target to $29 from $27.

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