Figma Inc. saw its stock climb in after-hours trading on Thursday after the design-software company boosted its 2026 revenue guidance by $55 million, citing robust adoption of its artificial intelligence tools. The revised forecast now ranges between $1.422 billion and $1.428 billion, up from the previous outlook.
The company reported first-quarter revenue of $333.4 million for the period ended March 31, a 46% jump from $228.2 million in the same quarter last year. Net dollar retention, a key metric measuring revenue growth from existing customers, came in at 139%, indicating strong expansion within its current user base.
Under generally accepted accounting principles (GAAP), Figma posted a net loss of $142.4 million. However, adjusted net income, which excludes certain costs, reached $56.5 million, signaling underlying profitability.
Management credited AI features for driving seat expansion, broader organizational adoption, and the early stages of monetization. CEO Dylan Field emphasized the strategic value of design in an era of cheaper coding, stating, 'When code is a commodity, design is the competitive edge.' CFO Praveer Melwani pointed to 'stronger than expected seat expansion' and early traction from AI monetization as key drivers behind the outperformance.
Investors have been closely watching software stocks amid debates over whether AI agents will boost demand for workflow tools or render them obsolete. Figma's results, as noted by Barron's, provided a counterpoint to the replacement narrative, though the stock remains significantly below its post-IPO high for the year.
For the second quarter, Figma expects revenue between $348 million and $350 million, well above the roughly $330 million analysts projected, according to Bloomberg. This marks a clear beat rather than a marginal increase.
The company began capping AI credit usage on March 18, covering features like Figma Make. In April, over 75% of Org and Enterprise customers who exceeded their limits continued using credits, and more than 95% remained active, demonstrating sustained engagement.
Despite the positive news, risks remain. In SEC filings, Figma noted that customers may demand full AI features as part of standard subscriptions, and that AI-related expenses and user behavior could be unpredictable. The company also warned that advances in AI might reduce the pool of designers, developers, and other collaborators needing platform seats.
Competition is intensifying. In April, Anthropic launched Claude Design, a research-preview tool capable of handling prototypes, slides, and broader visual projects, with export options to Canva, PDF, PPTX, and HTML. This forces Figma to not only pursue fresh AI-driven growth but also strengthen its defenses.
Figma's performance offers early evidence that AI can drive revenue higher, even as it begins to reshape traditional workflows. The coming quarter, with credit limits fully in place, will test whether this momentum can be sustained.
