Why Figma Stock Just Sank

Software stocks fell Thursday after quarterly results from Datadog, Figma, and HubSpot. Datadog shares dropped more than 15% despite beating revenue and earnings; adjusted gross margin was 80% versus 80.7% consensus. Figma also fell after warning of higher AI inference spending. iShares Expanded Tech-Software ETF (IGV) fell over 2%.

US stock index futures were mixed, with S&P futures up 0.1% and Nasdaq futures down 0.5% as Sandisk (SNDK) fell about 9% and Western Digital (WDC) about 15% after earnings and weaker memory outlooks. Tech and AI names also dropped on results or guidance misses, while Mag 7 were mixed. Asian markets declined after chip-related losses, and investors awaited US payrolls.

Figma shares fell 17.64% to $23.18 after Q2 results showed revenue of $370.08 million, up 48% year over year, and adjusted EPS of $0.08. The company raised full-year 2026 revenue guidance to about $1.47 billion, but its Q3 outlook implied ~36% growth at the midpoint. Investors also cited margin pressure and an August 2026 insider lockup.

Figma reported Q2 FY2026 revenue of $370M, up 48% year over year, and lifted full-year guidance by $40M to $1.463B-$1.467B, citing AI credit monetization. CFO said beta products are excluded from outlook. Q3 guidance of $373M-$375M disappointed, and the stock fell after hours.

Figma, Inc. (FIG) reported Q2 revenue of $370.08 million for the quarter ended June 2026, up 48.3% year over year and above the Zacks Consensus estimate of $350.8 million by 5.5%. EPS was $0.08 versus -$0.04 a year ago, beating consensus EPS of $0.04. Key metrics included 15,964 paid customers over $10,000 ARR and 136% net dollar retention.

According to Figma Inc’s Q2 2026 transcript, revenue rose 48% to $370M, driven by AI credit monetization and customer expansion. Gross margin increased to 85%, and net dollar retention stayed at 136%. The company raised full-year revenue guidance while continuing product investment and leadership transitions.