Figma $FIG ( ▲ 0.72% ) delivered a rare dose of optimism to a bruised software sector, posting Q4 results that beat expectations and issuing eye-popping guidance for both the current quarter and the full year. Investors wasted no time rewarding the digital design platform, sending shares sharply higher in after-hours trading.
For the final stretch of 2025, Figma reported revenue of $303.8 million, comfortably ahead of the $293.1 million analysts expected. Adjusted earnings per share came in at $0.08, also topping forecasts of $0.07. In other words, Figma didn’t just clear the bar, it raised it.
Guidance that left analysts scrambling
If the backward-looking numbers were solid, the forward outlook was the real headline. Management expects Q1 revenue between $315 million and $317 million, far above the roughly $293.6 million Wall Street modeled. Full-year revenue is projected at $1.366 billion to $1.374 billion, blowing past consensus estimates of about $1.29 billion.
Notably, even the low end of both ranges sits above the highest analyst projections, a signal that management sees stronger demand than the market anticipated. For a company that only recently went public, that kind of confidence tends to get attention.
AI: threat or turbocharger?
This earnings report marks Figma’s second as a public company, and it arrives during a rough patch for software stocks broadly. Shares had already been hammered this year alongside peers, putting pressure on leadership to prove the business can thrive in the AI era rather than be disrupted by it.
Management is leaning hard into the “AI as accelerant” narrative. Earlier this week, Figma announced a partnership with Anthropic to integrate AI coding tools into its platform, signaling a push to embed generative capabilities directly into product workflows. CFO Praveer Melwani emphasized that the company’s strong balance sheet and positive free cash flow provide room to invest aggressively while maintaining long-term discipline.
From IPO hype to comeback story?
Despite the after-hours surge, the stock entered the report deeply wounded. As of Wednesday’s close, shares were down about 35% for the year and roughly 80% below their level around the July IPO. That steep decline underscores just how skeptical investors had become about growth software names.
Now the question is whether this quarter marks a turning point or just a temporary relief rally. If Figma can convert AI excitement into sustained revenue acceleration, the narrative could shift from post-IPO disappointment to one of the more compelling comeback stories in enterprise software.