Figma shares drop following Q3 earnings beat
Figma reported third-quarter results that exceeded analyst estimates, yet the company's shares fell as investors weighed slowing revenue growth against long-term AI-focused investments.
Figma reported third-quarter revenue of $391.4 million and adjusted earnings of 10 cents per share, surpassing consensus estimates of $375.8 million and 5 cents per share. Despite the stronger-than-expected results, the company's shares fell 7% in extended trading. The firm's revenue grew 43% year-over-year, while its net loss narrowed to $81.3 million from $1.10 billion in the same period a year ago.
The company is currently shifting its focus toward long-term growth by prioritizing the adoption of its AI features. Finance chief Praveer Melwani noted that Figma is effectively trading off near-term revenue by providing increased AI credits to customers without raising prices. The company aims to drive durable growth by encouraging broader integration of its proprietary AI models within its design platforms.
Looking ahead, Figma has raised its full-year operating margin guidance to 11%. However, executives anticipate revenue growth will slow to roughly 33% in the fourth quarter. The company’s stock has declined 41% so far in 2026, as investors continue to assess the competitive implications of AI integration across the software sector.