Prime Highlights:
- Shares surged 15% in extended tradingafter the company posted better-than-expected fourth-quarter results and issued upbeat guidance.
- CEO Dylan Field emphasized that AI is expanding demand for design tools, with rapid adoption of Figma Make powered by models from Anthropic and Google.
Key Facts:
- Figma reported adjusted earnings of 8 cents per share on $303.8 million in revenue, with revenue rising 40% year over year.
- The company projected 2026 revenue of up to $1.374 billion and adjusted operating income of as much as $110 million, while maintaining an 86% adjusted gross margin despite a 70% jump in weekly AI users.
Background:
Figma shares climbed 15% in extended trading on Wednesday after the company posted strong fourth-quarter results and issued upbeat guidance, supported by growing demand for its artificial intelligence tools.
The company reported adjusted earnings of 8 cents per share on revenue of $303.8 million, both ahead of analyst expectations. Revenue rose 40% from a year earlier, showing continued momentum among enterprise customers and higher spending on its platform.
Management expects first-quarter revenue between $315 million and $317 million, well above market forecasts and implying about 38% growth. For 2026, Figma projected revenue of up to $1.374 billion and adjusted operating income of as much as $110 million, reinforcing investor confidence in its long-term expansion.
Chief executive Dylan Field said software demand remains strong despite rising competition, adding that AI will expand, not reduce, the need for design tools. The company’s Figma Make feature, which uses models from Anthropic and Google to generate app prototypes from text prompts, saw rapid adoption. More than half of customers spending over $100,000 annually used the tool every week during the quarter.
Figma also improved the cost efficiency of running its AI services, helping it maintain an adjusted gross margin of 86% even as weekly AI users jumped 70% from the previous quarter.
The company will start offering monthly AI credit limits in March to capitalize on growing use. Customers will either pay for what they use or buy a credit plan. This will create a new source of income linked directly to AI use.
Large clients are staying loyal and spending more. Net dollar retention from customers who spend at least $10,000 a year rose to 136%. This was higher than the company’s own targets.
During the quarter, Figma also announced a partnership with ServiceNow to help large organizations turn designs into working applications, expanding its reach beyond designers to product managers and research teams.
Strong adoption of AI workflows and expanding enterprise use cases are positioning Figma for sustained growth, analysts said, as the company broadens its platform and deepens customer engagement.
