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5d ago

Figma Rallies on Strong Quarter as Goldman and Piper Cut Price Targets

Lower targets reflect a valuation reset alongside rising AI costs that could pressure margins.

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Approximately 60% of Paid Customers with more than $100,000 in ARR used Figma Make weekly in the three months ended March 31, 2026, up from over 50% in the prior quarter.

Overview

  • Figma shares, which jumped after the May 14 earnings beat and guidance raise, rose again Monday morning in stock‑specific trading.
  • Q1 revenue reached $333.4 million, up 46% year over year, with a 139% net dollar retention rate and about 690,000 total paid customers.
  • AI monetization showed early traction after mid‑March credit limits, with most users staying active and continuing to buy credits, and Pro team upgrades surging.
  • Goldman Sachs kept a Neutral rating but cut its target to $30 and highlighted a roughly 110‑basis‑point gross margin shortfall versus estimates.
  • Piper Sandler lowered its target to $30 with an Overweight view, as the stock remains more than 35% lower for the year and investors watch whether AI usage turns into durable, high‑margin revenue.