Figma Gains on Strong Growth Outlook That Eases AI Fears

Figma gave an annual revenue outlook that topped estimates, easing Wall Street anxiety that the business is threatened by the emergence of rival artificial intelligence products.

Sales will be about $1.37 billion in 2026, the San Francisco-based company said Wednesday in a statement. Analysts, on average, projected $1.29 billion, according to data compiled by Bloomberg. Figma is known for making software used to design applications and website interfaces. It has worked to expand its suite of software, including a generative AI tool called Figma Make, which creates app interfaces and code from prompts. Weekly users of the tool grew 70% in the fourth quarter, the company said in the statement. Figma CEO Dylan Field joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec.  Figma Inc. shares jumped in extended trading after the creative software maker gave an annual revenue outlook that topped estimates, easing Wall Street anxiety that the business is threatened by the emergence of rival artificial intelligence products.

Sales will be about $1.37 billion in 2026, the San Francisco-based company said Wednesday in a statement. Analysts, on average, projected $1.29 billion, according to data compiled by Bloomberg.

Figma is known for making software used to design applications and website interfaces. It has worked to expand its suite of software, including a generative AI tool called Figma Make, which creates app interfaces and code from prompts. Weekly users of the tool grew 70% in the fourth quarter, the company said in the statement.

“Our growth and momentum show that our strategy is working,” Chief Executive Officer Dylan Field said in remarks prepared for a conference call after the results were released. “In 2025, we expanded from four to eight products and launched over 200 features, including new AI-native functionality.”

The application software industry as a whole has been rocked by fears of competition from AI, with investors fleeing from some of the biggest enterprise companies such as Salesforce Inc. and ServiceNow Inc.

The shares rose more than 15% in extended trading after closing at $24.19 in New York. The stock has declined steadily since Figma’s blockbuster public offering in July 2025, which saw the shares pop 250% on the first day of trading. As of Wednesday’s close, the stock was about 25% below the $33-a-share IPO price.

“Like with the rest of software, investors are grappling with the defensibility of Figma’s moat against AI-native competitors or the potential for general AI efficiencies to weigh on seats,” wrote Billy Fitzsimmons, an analyst at Piper Sandler, referring to the number of a customer’s paid users.

The results seemed to help boost investor spirits. “This should help quell AI disruption concerns,” wrote Anurag Rana, an analyst at Bloomberg Intelligence. Rishi Jaluria, an analyst at RBC Capital Markets, said “we were pleased to see positive commentary around both Figma Make and Figma Design, indicating increased adoption of AI workflows.”

Read More: Trillion-Dollar Tech Wipeout Ensnares All Stocks in AI’s Path

Fourth-quarter revenue increased 40% to $303.8 million, the company said. Profit, excluding some items, was 8 cents a share. Wall Street analysts, on average, estimated earnings of 7 cents a share on revenue of $293.1 million.

Net dollar retention rate — a metric of spending by existing customers — was 136%, topping projections. This indicator is watched by investors as a signal of whether customers are adopting new tools offered by Figma, and thus expanding their spending with the company. It represents an increase from 131% reported in the previous quarter.(Updates with additional context from the third paragraph.)To contact the reporter on this story:

Brody Ford in San Francisco at bford61@bloomberg.net

To contact the editors responsible for this story:

Sarah Frier at sfrier1@bloomberg.net

Andrew Pollack, Dana Wollman

FIG US Equity

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