Figma's shares surged 16% in after-hours trading on Wednesday, buoyed by better-than-expected quarterly results and a robust outlook for 2026. Q4 EPS came in at $0.08, versus $0.07 expected, while revenue reached $303.8m, well above the $293.15m forecast. Revenue rose 40% y-o-y, despite a net loss of $226.6m, notably due to investments in AI infrastructure.

For Q1 2026, Figma expects revenue of between $315m and $317m, up 38% y-o-y. For the full year, the company is targeting revenue of between $1.366bn and $1.374bn, compared with a consensus of $1.29bn, and operating income of between $100m and $110m. The announcements come amid broad skepticism towards software stocks, weakened by the rise of generative AI, even as Figma is seeking to capitalize on that shift.

Listed in July, Figma is banking on its Figma Make tool, which can generate prototypes from natural-language instructions, in partnership with Anthropic and Google. Over half of its strategic customers are already actively using the tool. The group plans to monetize usage from March, through monthly caps on AI credits and dedicated subscriptions. Despite a 70% increase in weekly active users of Figma Make, it's gross margin held steady at 86%, helped by optimization of infrastructure costs. A strategic partnership has also been struck with ServiceNow to turn Figma designs into enterprise applications.