Figma Surges Over 12% Pre-Market After Results Beat Expectations, But Analysts Still Cut Price Target
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Figma reported Q1 fiscal 2026 results exceeding Wall Street estimates, with revenue up 46% year-over-year to $333.4 million and adjusted EPS at $0.10. The company saw a 54% increase in paying customers, driven significantly by AI adoption and new Pro Team plan users. Figma raised its full-year revenue guidance and provided a strong Q2 forecast. A partnership with OpenAI to integrate its platform into ChatGPT is seen as a key step in strengthening its AI ecosystem. Despite strong performance, RBC Capital Markets lowered its price target due to valuation concerns, though acknowledged the solid results and the importance of AI strategy validation.
TradingKey - Figma ( FIG.US) released its first-quarter fiscal 2026 financial results after the market closed on May 14, with core metrics beating Wall Street estimates across the board.
[Figma Stock Performance, Source: Google Finance]
Driven by the news, Figma's stock price surged nearly 13% in pre-market trading on May 15 ET; as of press time, the gain narrowed to approximately 9.3%, with the stock trading at $22.1.
Revenue and Profit Beat Expectations; AI Becomes Core Growth Engine.
Figma's first-quarter revenue reached $333.4 million, up 46% year-over-year, exceeding market expectations of $313.2 million, with growth further accelerating from 40% in the previous quarter, marking two consecutive quarters of accelerating growth.
[Figma Q1 Earnings Report, Source: Figma Official Website ]
Adjusted earnings per share were $0.10, also beating the expected $0.06. During the period, paying customers grew 54% year-over-year to approximately 690,000, while rising AI adoption drove a year-over-year increase of over 150% in new users switching to the Pro Team plan.
The company simultaneously raised its full-year revenue guidance, forecasting fiscal 2026 revenue between $1.422 billion and $1.428 billion, up approximately $55 million from previous estimates, and provided Q2 revenue guidance of $348 million to $350 million, also exceeding analyst expectations.
Deeply aligned with OpenAI, the AI narrative continues to strengthen.
Figma previously announced a partnership with OpenAI to integrate its platform into ChatGPT, allowing users to generate charts, edit images, and collaborate on prototypes directly within conversations, a move the market views as a key step in expanding user access and strengthening its AI ecosystem.
CEO Dylan Field emphasized during the earnings call that these results validate Figma's AI strategy, with robust adoption of AI tools serving as a major driver for accelerated growth. The industry has also noted that, amid the significant impact of AI on the SaaS sector, Figma is evolving from a traditional design tool into an AI-native collaborative platform through deep integration with cutting-edge AI models like ChatGPT and Claude Code.
RBC Lowers Price Target as Valuation Concerns Persist
Despite the strong earnings report, RBC Capital Markets lowered its price target from $31 to $28 following the release, citing valuation pressure and gross margins that slightly missed expectations.
However, analysts also acknowledged that this was a solid set of results; following Figma's Q1 report, market validation of its AI strategy and the continued expansion of its paying customer base will be key to determining its future value.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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