Figma shares tumbled 7% in extended trading on November 4, 2026, following the release of third-quarter financial results that surpassed analyst predictions. Despite the market reaction, the company reported adjusted earnings per share of 10 cents against an expected 5 cents, while revenue reached $391.4 million compared to the consensus estimate of $375.8 million. This performance marked a 43% year-over-year revenue increase and narrowed the net loss to $81.3 million, or 15 cents per share, a significant improvement from the $1.10 billion loss recorded a year prior.
The company's adjusted operating margin of 12% exceeded the 6.1% consensus among analysts polled by StreetAccount. Consequently, executives raised their full-year forecast, now anticipating an 11% operating margin and revenue between $1.497 billion and $1.499 billion, up from previous estimates of $1.463 billion to $1.467 billion. Analysts surveyed by LSEG had projected 2026 revenue at $1.471 billion. Looking ahead, Figma expects fourth-quarter revenue growth to slow to approximately 33%, which remains higher than the 28% growth predicted by analysts.
The stock decline occurred against a backdrop where Figma shares have dropped about 41% so far in 2026, contrasting with a 12% gain for the S&P 500 index. The announcement followed news that rival design software startup Canva planned to cut 22% of its workforce. Earlier in the year, investor concerns had risen regarding AI models posing competitive risks, though such panic has largely subsided across the software sector as incumbents continue to post growth.
Figma is actively leveraging rising AI adoption for website and app development by providing more AI credits to clients without raising prices. Praveer Melwani, Figma's finance chief, explained to CNBC that this strategy involves trading off near-term revenue to invest in customers and enable durable long-term growth. Data from the quarter showed a nearly 50% increase in weekly users at organizations spending over $10,000 who utilized AI credits. Additionally, the share of work performed by Figma's own AI model doubled, while the rate of users undoing AI-generated work declined.
Melwani noted that the company is open to powering certain customer actions with lower latency and cost compared to third-party solutions if quality remains similar. Meanwhile, co-founder and CEO Dylan Field highlighted an increased focus on cybersecurity following recent incidents where AI agents infiltrated systems at companies like Hugging Face. While clients are not requesting Figma to become a security vendor, Field emphasized the necessity of scrutinizing the security of all current vendors.
Sources: CNBC Markets.