Figma's stock surged 19.64% in the after-hours session on Wednesday, following the release of its fourth-quarter financial results that significantly exceeded analyst expectations.
The design software company reported quarterly revenue of $303.8 million, representing 40% year-over-year growth and beating the consensus estimate of $293.2 million. On an adjusted basis, Figma earned 8 cents per share, surpassing the forecast of 7 cents.
Investor sentiment was further bolstered by the company's optimistic outlook. Figma projected first-quarter 2026 revenue between $315 million and $317 million, well above the $291.9 million analysts had anticipated. For the full fiscal year 2026, the company expects revenue in the range of $1.366 billion to $1.374 billion, compared to the Street estimate of $1.29 billion.
The strong performance was attributed to robust platform adoption and the accelerating integration of artificial intelligence tools. Figma highlighted that weekly active users of its AI-powered design tool, Figma Make, grew over 70% quarter-over-quarter, while its net dollar retention rate reached 136%, indicating healthy customer expansion and retention.