Figma surges 6.9% on earnings beat as Cathie Wood adds $25M stake
Design software platform reports 40% revenue growth and announces Anthropic AI partnership
Figma shares jumped 6.9% in extended trading Thursday after the design software company reported fourth-quarter earnings that exceeded Wall Street expectations and announced a strategic partnership with AI company Anthropic. The stock's surge attracted a $25 million bet from Cathie Wood's ARK Invest, which purchased nearly 1 million shares following the results.
The San Francisco-based company reported adjusted earnings of 8 cents per share, beating analyst estimates of 7 cents by 14.3%. Revenue reached $303.7 million for the quarter ended December 31, 2025, up 40% year-over-year and surpassing the Zacks Consensus Estimate of $293 million.
The strong quarterly performance pushed Figma's fiscal year 2025 revenue to $1.056 billion, marking the first time the company has crossed the $1 billion annual revenue threshold—a milestone that comes just seven months after its initial public offering.
Figma went public in July 2025 at $33 per share, with its stock surging to $115.50 on its first day of trading. However, the shares have since experienced significant volatility, hitting a 52-week low of $19.85 in February 2026. Despite the recent earnings-driven rally, the stock remains down sharply from its post-IPO highs.
The company's customer metrics demonstrated continued expansion across its enterprise segment. Figma ended the quarter with 13,861 customers generating more than $10,000 in annual recurring revenue, adding 951 during the quarter. Additionally, it counted 1,405 customers with over $100,000 in ARR, up 143 sequentially. The net dollar retention rate for customers with ARR above $10,000 improved to 136%, indicating deeper product adoption among existing clients.
In a move that could reshape how software teams collaborate, Figma announced an expanded partnership with Anthropic to launch a "Code to Canvas" feature. The tool allows users to convert AI-generated code from Anthropic's Claude Code directly into editable designs within the Figma platform, creating a seamless workflow between AI-assisted coding and collaborative design environments.
"This strategic integration is positioned to adapt to the evolving landscape where AI-assisted coding is increasingly influencing interface development," according to the Economic Times. The partnership comes as Figma ramps up investment in artificial intelligence capabilities, which the company indicated will weigh on operating margins in 2026.
Cathie Wood's ARK Invest responded to the results by purchasing 964,342 shares across its ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW), totaling approximately $24.93 million. The investment represents Wood's latest move into high-growth software stocks, following her pattern of "leaning into volatility" and adding to positions during market sell-offs.
Figma provided guidance for the first quarter of 2026, projecting revenue between $315 million and $317 million, implying 38% year-over-year growth. For the full year 2026, the company expects revenue of $1.366 billion to $1.374 billion, representing 30% growth. Non-GAAP operating income is projected between $100 million and $110 million, with an expected operating margin of 8% at the midpoint.
The company ended the quarter with $1.7 billion in cash and marketable securities, providing ample liquidity to fund its AI investments and product development initiatives. Analysts currently have an average target price of $71.12 on the stock, according to market data, with ratings split between buy and hold recommendations.
Figma's latest results and AI partnership come at a critical juncture for the company, which has faced investor skepticism over its high valuation relative to traditional software metrics. With the stock trading at roughly 29 times trailing sales, the company faces pressure to demonstrate that its AI-powered growth story can sustain momentum amid increasing competition in the collaborative design and development tools market.