Shares of Figma (FIG) surged in after-hours trading after the creative design company reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at $0.08, which beat analysts’ consensus estimate of $0.07 per share. In addition, revenue came in at $303.8 million. This beat analysts’ expectations of $293.12 million.
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Interestingly, investors have recently been worrying that generative AI tools could slow the growth of traditional software companies. In fact, as of Wednesday’s close, Figma shares were down about 35% year-to-date. However, Figma co-founder and CEO Dylan Field pushed back on this narrative by saying that software is not disappearing and will likely expand significantly. While he admitted that the market is becoming more competitive, he emphasized that demand for software is not going away.
At the same time, Figma is positioning itself to benefit from AI adoption. Indeed, its Figma Make tool allows users to enter prompts that Anthropic and Google (GOOGL) AI models can interpret to generate app prototypes. Importantly, more than half of customers spending over $100,000 annually used the tool weekly last quarter. Moreover, the firm reduced computing costs while keeping its adjusted gross margin steady at 86%, despite a 70% increase in weekly active users for Figma Make. Figma also plans to monetize AI more directly by introducing monthly AI credit limits and usage-based pricing in March.
2026 Outlook
Looking forward, management has provided the following guidance for 2026:
- Q1 2026 revenue of between $315.0 million and $317.0 million, versus analysts’ estimates of $292.5 million
- FY 2026 revenue of between $1.366 billion and $1.374 billion, versus analysts’ estimates of $1.29 billion
- FY 2026 non-GAAP operating income of $100 million to $110 million
As we can see, the company’s outlook is better than expected, which helped lead to the after-hours move in the stock price.
Is FIG Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FIG stock based on three Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average FIG price target of $42.17 per share implies 74.3% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
