Shares of Figma rose about 9% in premarket trading on Friday after the design software company raised its annual revenue forecast, signaling that growing adoption of its artificial intelligence tools is helping drive customer expansion and higher spending across its platform.
The company said it now expects fiscal 2026 revenue between $1.42 billion and $1.43 billion, up from its earlier forecast of $1.36 billion to $1.37 billion.
The stronger outlook came after Figma reported first-quarter revenue of $333.4 million for the period ended March 31, ahead of analyst estimates of $313.2 million, according to data compiled by LSEG.
AI tools deepen customer engagement
Figma has increasingly integrated AI features across its browser-based design platform, which is widely used by customers ranging from freelancers to large Fortune 500 companies.
The company’s software allows users to move from early-stage sketches and prototypes to coding and publishing products within a single platform.
Figma has been betting that AI can simplify those workflows further and expand adoption among corporate customers.
Executives said customer engagement with the company’s AI products remained strong even after Figma introduced usage-based credit limits earlier this year.
Over 75% of “Org” and “Enterprise” users who exceeded their AI credit limits continued purchasing additional AI credits in April, the company said.
Figma began enforcing those credit limits in March and introduced paid add-ons for customers who exceeded the AI usage included in their plans, part of a broader push to monetize demand for AI-powered features.
“As AI gets better, Figma is accelerating and customer usage and workflows on our platform are deepening. Our platform and AI products drove faster growth for both new customer acquisition and expansion within existing accounts,” Chief Financial Officer Praveer Melwani said in the earnings statement.
The company also forecast second-quarter revenue between $348 million and $350 million, above analysts’ expectations of $327 million.
Competition concerns remain
Despite the upbeat results, investors and analysts continue to watch closely for signs that rapidly evolving AI technology could disrupt traditional software platforms.
The rise of so-called agentic AI tools has intensified concerns across the technology industry that advanced models may eventually handle more design and development tasks without relying on conventional software workflows.
Last month, Anthropic unveiled Claude Design, a tool that allows users to generate designs, interactive prototypes and presentations using AI prompts.
“When you talk about a Claude design…you can’t dismiss them, their ability to train first-party models and couple those with their own products is something that we definitely are paying attention to,” Melwani told Reuters.
Still, Figma executives argued that AI is currently acting more as a growth catalyst than a threat, helping the company attract more customers and deepen usage across existing accounts.
Analysts’ stance on the stock
Analysts remain cautiously optimistic on the stock.
Piper Sandler lowered its price target on Figma to $30 from $35, though broader Wall Street sentiment remains constructive.
According to estimates from seven analysts, Figma’s average price target has fallen to $35.14 from $37.43, with forecasts ranging from $25 to $44 per share.
Based on the stock’s May 14 closing price, the revised average target still implies roughly 74% upside potential.
Consensus ratings compiled across 13 analysts continue to stand at “Buy,” with four Buy ratings, nine Holds, and no Sell recommendations.
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