Figma shares fall 7% after Q3 earnings beat as AI spending weighs on margins

Shares drop despite earnings beat

Figma’s shares fell 7% to 8% in extended trading after the design software company reported third-quarter earnings and revenue that exceeded Wall Street expectations—but flagged higher spending on artificial intelligence and cybersecurity as a trade-off for long-term growth. CNBC and ET Tech both reported the drop, with ET Tech noting the stock slid 8% after gross margin came in slightly below estimates.

Revenue growth and profitability improvements

Figma’s revenue rose 43% year over year to $391.4 million in the quarter, surpassing analysts’ expectations of $375.8 million. The company’s net loss narrowed sharply to $81.3 million, or 15 cents per share, from $1.10 billion a year earlier, while adjusted earnings per share of 10 cents doubled the consensus estimate of 5 cents.

Adjusted operating margin reached 12%, nearly double the 6.1% analysts had predicted.

Guidance raises long-term targets but slows near-term growth

Figma raised its full-year revenue forecast to between $1.497 billion and $1.499 billion, up from its earlier range of $1.463 billion to $1.467 billion. The company also increased its operating margin guidance to 11%, up from 9% in August. For the fourth quarter, Figma expects revenue growth to slow to 33%, below the 28% analysts had anticipated, reflecting investments in AI and cybersecurity.

CNBC reported the revised forecasts and noted the slower growth outlook contributed to the share price decline.

AI and cybersecurity investments drive adoption

Figma’s finance chief, Praveer Melwani, told CNBC the company is prioritizing customer investment by offering more AI credits at existing prices—delaying near-term revenue to drive durable adoption. Over 80% of large paid customers now use AI credits weekly, and the share of work powered by Figma’s proprietary AI model doubled during the quarter. ET Tech added that utilization of AI add-ons rose 40% after repricing.

The company’s focus on AI extends to cybersecurity. CEO Dylan Field said Figma is scrutinizing vendor security following infiltrations at companies like Hugging Face, though clients are not asking Figma to become a security provider.

Market reaction reflects growth vs. margin trade-off

Figma’s gross margin for the quarter was 80%, slightly below the 81% analysts expected. While the company’s shares have fallen 41% in 2026, the S&P 500 has risen 12%, reflecting broader concerns about AI’s impact on design software incumbents. CNBC noted that AI-related panic in the sector has subsided as growth persists.

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