Design software company Figma Inc. (FIG.US) reported quarterly results that significantly surpassed market expectations, with its progress in commercializing artificial intelligence (AI) features gaining recognition from Wall Street, driving a sharp increase in its stock price on Friday.
As of the latest update, Figma's stock price surged over 16% against the market trend to $23.66. Meanwhile, its competitor Adobe (ADBE.US) saw its stock price rise approximately 2.7%.
Figma's financial results for the first quarter of fiscal year 2026 marked its largest earnings beat since its initial public offering. Several Wall Street institutions noted that the paid conversion rate for the company's AI features was particularly impressive.
An analyst from RBC Capital Markets stated that Figma began implementing usage limits on AI credits for all accounts starting March 18th. Data shows that after exceeding the free allowance, over 75% of enterprise and organizational customers continued to purchase AI credits, with more than 95% of those users remaining active on the platform. Furthermore, professional teams that purchased additional AI credit packages had, on average, three times the number of team seats and annual recurring revenue (ARR) spending compared to teams that did not purchase them. RBC believes this demonstrates strong user stickiness and commercial value for Figma's AI capabilities. However, the firm maintained its "Hold" rating on the stock while lowering its price target from $31 to $28.
Piper Sandler also expressed optimism regarding Figma's AI monetization potential. The firm pointed out that over 75% of enterprise users continued to pay for usage after reaching their AI credit limits, indicating that customers are deriving tangible value from the AI features. This further strengthens market confidence in the company's potential for AI-driven revenue growth. Piper Sandler also noted that early user retention for Figma's AI product "Make" has been positive, suggesting that other AI tools, including MCP, Weave, and AI Assistant, could further expand platform usage in the future. The firm maintained an "Overweight" rating but lowered its price target from $35 to $30.
Concurrently, Oppenheimer maintained a "Perform" rating and did not provide a specific price target. Oppenheimer analysts stated that Figma's first-quarter performance was "significantly ahead of expectations with full-year guidance raised," while also exhibiting "Rule of 62" business characteristics, which they described as "top-tier" within the current software industry. The so-called "Rule of 62" typically refers to a combined total of revenue growth rate and profit margin reaching 62%, reflecting a company's ability to achieve both high growth and high profitability.
As AI features increasingly become a key growth driver for design software, Figma is enhancing its commercialization capabilities through its AI credit monetization model, thereby strengthening its competitive advantage in the field of AI-powered design tools.