By Kit Norton

Figma is looking to change the script when it comes to artificial intelligence and software stocks after the company surpassed first-quarter earnings expectations late Thursday and raised its full-year guidance.

Figma stock jumped 8% in after-hours trading after ending Thursday's regular market action up 6.9% to $20.25. Shares are down 46% this year, swept up in the broad software selloff prompted by investor fears that AI will disrupt software, rendering some offerings obsolete.

The design software developer posted adjusted earnings of 1o cents a share, compared with 18 cents a share a year ago and above Wall Street's expectations of 6 cents a share. Revenue totaled $333.4 million, rising 46% from a year ago and beating the analyst consensus call for $316 million, according to FactSet.

Paid customers rose 54% to 690,000 with "pro team conversion" rising 150%, "reflecting continued long-tail adoption of Figma's AI features." Figma in recent quarters has been seeing strong growth in users from larger customers for the paid version of its Figma Make AI tools.

For the second quarter, Figma forecasts revenue between $348 million and $350 million, coming in above analyst expectations of sales totaling $330 million.

Figma also raised its full-year guidance, forecasting revenue between $1.422 billion and $1.428 billion, up from its February guidance calling for sales ranging from $1.366 billion and $1.374 billion. The company also hiked its adjusted operating income view to $125 million to $135 million compared with its prior $100 million to $110 million prediction.

Wall Street was calling for 2026 revenue of $1.37 billion and operating income of $107 million.

Figma -- which offers cloud-based, collaborative design tools used primarily to create user interfaces, user experiences, website layouts, and mobile apps -- has tried to mitigate the impact of AI on its business.

In February, the company announced a partnership with AI start-up Anthropic that lets users turn AI-generated code into designs. Figma also has agreements with ChatGPT creator OpenAI and Gemini owner Alphabet.

However, investors have been wary of what Figma has been selling until this point.

Figma and Adobe came under pressure last month after Anthropic launched a new artificial intelligence tool to create visual designs. Anthropic launched Claude Design, which is a new Anthropic Labs product that lets users work with Claude, its AI model, to create visual designs, slides, and more.

Overall Figma went from being one of the initial public offering heroes of 2025 to an IPO flop. Shares surged 250% on its debut day in late July, but have sunk this year and are currently 83% below their record closing high of $122 from Aug. 1, 2025.

Write to Kit Norton at kit.norton@barrons.com

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May 14, 2026 16:37 ET (20:37 GMT)

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