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Figma (FIG) is drawing fresh attention after its second quarter 2026 earnings, where revenue exceeded consensus estimates, AI tools contributed new monetization, and management raised full year revenue guidance despite higher AI related costs pressuring margins.
See our latest analysis for Figma.
Despite Figma lifting full year revenue guidance after its August 5 results, the stock fell about 15% on the day, which reflects investor concern about higher AI related costs. This comes after a 16% 90 day share price return and a much weaker 1 year total shareholder return of 69%, so short term momentum looks stronger than the longer term picture.
If Figma's AI push has your attention, this is a good time to see what else is happening in the space and check out 69 profitable AI stocks that aren't just burning cash
After a sharp drop leaves Figma trading below both analyst targets and some intrinsic value estimates, the real question is where fair value actually sits within that gap and how the new AI spending profile fits into it.
Figma closed at $23.97, while the most widely followed narrative pegs fair value closer to $30.40, which puts a spotlight on what is driving that gap.
Disciplined but sustained investment in AI infrastructure and platform interop, funded from a strong cash position and current profitability, is described as positioning Figma to introduce usage based pricing and premium AI features over time. This is framed as potentially enhancing revenue per customer and supporting faster earnings growth once AI spend normalizes.
The narrative supporting that fair value for Figma leans heavily on compound revenue expansion, a step change in margins, and a rich earnings multiple. The exact growth path, profitability bridge, and rating all interlock in a way that is not obvious from the headline numbers. The detail sits in how these assumptions are sequenced and discounted.
Result: Fair Value of $30.40 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Figma investors still need to weigh the risk that heavy AI spending and rising competition in design and developer tools could slow revenue growth and pressure margins.
Find out about the key risks to this Figma narrative.
The earlier narrative leaned on long term earnings potential to argue Figma is trading below fair value. The market today is also putting a high price on current sales, with a P/S of 10x versus a fair ratio of 9.1x, the US Software industry at 3.8x, and peers at 13.7x. That mix of richer pricing than the fair ratio but lower than similar companies raises a simple question for you: Is this skew a risk worth taking or a chance to get exposure to a premium growth story at a relative discount to peers?
For a closer look at how that P/S gap could close over time and what it might mean for your own assumptions, See what the numbers say about this price — find out in our valuation breakdown.
With Figma sitting between risks and rewards, you do not need to rely only on headline takes. Act while the data is fresh and weigh both sides yourself with 4 key rewards and 2 important warning signs
If Figma has sharpened your interest, do not stop here. Use fresh data and clear filters to scan the wider market for ideas that fit your style.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include FIG.
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