Figma Shares Fall 7% Despite Strong Third Quarter Results

Shares of design software company Figma fell 7% in extended trading after its third-quarter earnings report and financial outlook exceeded Wall Street expectations, as the company prioritized long-term growth through increased artificial intelligence investment.

According to results reported by the company, adjusted earnings reached 10 cents per share, compared with analysts' expectations of 5 cents. Revenue totaled $391.4 million, surpassing the consensus estimate of $375.8 million compiled by LSEG.

Revenue increased approximately 43% year over year during the quarter. Figma also reduced its net loss to $81.3 million, or 15 cents per share, from $1.10 billion, or $2.72 per share, in the same period a year earlier.

The company's adjusted operating margin reached 12%, exceeding the 6.1% consensus estimate among analysts surveyed by StreetAccount.

Figma raised its full-year financial projections following the stronger-than-expected performance. The company now expects an operating margin of 11%, compared with its previous forecast of 9% issued in August.

Its updated revenue forecast stands between $1.497 billion and $1.499 billion, up from the previous range of $1.463 billion to $1.467 billion. LSEG analysts had projected full-year 2026 revenue of $1.471 billion.

However, Figma expects fourth-quarter revenue growth to moderate to approximately 33%. That projection remains above the 28% growth anticipated by analysts surveyed by LSEG.

Finance chief Praveer Melwani explained that the company's expanded AI offering could involve accepting slower near-term revenue growth in exchange for stronger customer relationships and longer-term expansion.

"What that means is you're potentially trading off near-term revenue, investing in your customers, and then allowing yourself to then grow durably over the long term," Figma's finance chief, Praveer Melwani, told CNBC in an interview on Wednesday.

During the quarter, Figma increased the number of AI credits available to customers without raising prices. The strategy aims to encourage greater adoption of AI-powered tools for building websites and applications.

According to Figma's statement, weekly users at organizations spending more than $10,000 on the company's products who used AI credits increased by almost 50% during the quarter. The proportion of work completed by Figma's own AI model doubled, while the rate at which users reversed AI-generated work declined.

Melwani also addressed the company's approach to developing AI capabilities and potentially relying on external technology providers.

"If there's certain actions that we can power for our customers at lower latency, lower cost, or similar quality to third party, we're open to that as well," Melwani said.

Figma's latest results come amid continuing changes across the software industry as companies adapt their products and business strategies to artificial intelligence. A day earlier, design software startup Canva announced plans to reduce its workforce by 22%.

Investor concerns about AI competition had weighed on Figma earlier in 2026, as markets considered whether increasingly capable AI models could challenge established software companies. Figma shares had declined approximately 41% since the beginning of the year, while the S&P 500 had gained 12%.

Company executives were scheduled to discuss the quarterly results with analysts during a conference call beginning at 5 p.m. ET.