SAN FRANCISCO, May 4, 2026, 10:05 PDT
Figma Inc. jumped nearly 7% Monday, pushing the freshly public design software company’s shares to $20.08. That’s a move up from Friday’s $18.74 close, with the day’s action spanning $18.72 to $20.66. Investors are already eyeing the first-quarter report coming May 14.
Timing is key here. Figma has guided investors to expect first-quarter revenue between $315 million and $317 million, which shakes out to 38% growth at the midpoint. The company’s next earnings report will reveal whether that projection can stand, as artificial intelligence continues to reshape the design landscape. ([Figma Investor Relations][2])
Wall Street’s conviction isn’t there yet. As of May 2, MarketBeat tallied 15 analysts following Figma: just four say buy, 10 recommend holding, and one is on sell. The group’s average 12-month target sits at $43.25. Analysts see some upside, but conviction looks thin. ([MarketBeat][3])
Figma, which builds cloud software for designers, developers, and product teams, hit the public markets in July 2025 with plenty of attention. According to Reuters, shares soared 250% at the open, but later tumbled roughly 80% from that initial high.
On the numbers, Figma’s growth story hasn’t slipped. Revenue hit $303.8 million in the fourth quarter, a jump of 40% from the year before. For full-year 2025, Figma posted $1.056 billion, up 41%. Net dollar retention—tracking customer spending after all the ups and downs—climbed to 136%. ([Figma Investor Relations][2])
For CFO Praveer Melwani, AI isn’t just a risk—it’s fuel for Figma’s engine. “As AI gets better, Figma gets better,” he told Reuters back in February. The aim, he said, is to hand users an “infinite canvas” that lets ideas take shape more quickly. Reuters
Investors are likely to hear this pitch once more. Figma reports that weekly active users of its AI-powered app builder, Figma Make, jumped over 70% from the previous quarter. More than half of the company’s customers paying upwards of $100,000 a year were using the tool on a weekly basis in the most recent quarter, according to Figma Investor Relations.
Rivals are moving fast. On April 17, Anthropic rolled out Claude Design, pitching the tool as a way for users to build visuals—designs, prototypes, slides—directly through Claude. Google, for its part, introduced its Stitch tool back in March, touting the ability to spin up user interfaces and connect those designs right into developer workflows. The dominant player, Adobe, isn’t standing still either; it’s weaving AI into its creative software lineup.
Figma kept things moving in the fourth quarter. The company’s update highlighted a broader Figma Make, new support for experimental models like Gemini and Claude, and the launch of Claude Code to Figma. It also rolled out AI-based image-editing features and picked up Weavy—which has since been rebranded as Figma Weave. ([Figma Investor Relations][2])
The risk here is clear: AI could boost Figma’s tool sales, or just as easily erode the value of what users already buy. According to Reuters, spending on AI and other business priorities—plus stock-based pay—has been driving up costs. Executives warned that heavier AI investment would drag on gross margins. In the fourth quarter, Figma logged a GAAP operating loss of $195.5 million.
Monday’s action seems more like investors squaring up ahead of earnings than delivering any kind of judgment. Shares have already swung wildly this year, from $16.60 to $142.92, underscoring just how quickly sentiment has shifted since the IPO. The May 14 update will test whether Figma can keep the story on growth, not upheaval.
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