Figma stock jumps 6% as BofA backs AI outlook

Figma Inc. (FIG) shares climbed more than 6% on Tuesday after Bank of America reinstated coverage of the design software company with a Buy rating.

The brokerage argued that artificial intelligence is strengthening its competitive position and creating new opportunities for revenue growth.

The brokerage assigned Figma a $30 price target while reinstating coverage of Adobe Inc. with an Underperform rating and a $190 price target, saying the two companies are positioned differently as generative AI reshapes the design software market.

Although both stocks have declined sharply in 2026 amid concerns that AI tools could reduce demand for traditional design software, Bank of America believes Figma is better placed to benefit from the shift while Adobe faces greater competitive pressure.

AI seen supporting Figma's long-term growth

Bank of America analyst Tal Liani said Figma's collaborative platform gives the company an advantage as AI-generated content becomes more common across software development and product design.

Unlike traditional design applications focused on individual creative work, Figma is designed to help teams collaborate on complex projects such as user interfaces and digital product development.

The brokerage argued that while AI can automate parts of the design process, enterprises still require a centralized platform to organize, refine, and integrate AI-generated work into production-ready products.

Figma has also incorporated AI capabilities into its existing pricing model through a combination of seat-based subscriptions and usage-based AI credits.

“This structure allows Figma to introduce a direct pathway to monetize incremental AI usage as adoption scales, without disrupting or cannibalizing its core [software-as-a-service] model,” Liani said.

Bank of America pointed to early signs that the strategy is generating additional revenue.

During the first quarter of 2026, 75% of enterprise customers that exceeded their AI credit allocations purchased additional credits, while more than 95% remained active on the platform.

The brokerage also noted that Figma ended the quarter with 690,000 paid users, representing a 53% increase from a year earlier.

Strong growth outlook but risks remain

Bank of America expects Figma to continue outpacing the broader software industry over the next several years.

The brokerage forecasts revenue growth of 35.6% in 2026 and 23% in 2027, compared with peer averages of 19.3% and 15.7%, respectively.

It also expects operating margins to improve from 9.2% in 2026 to 13.8% by 2028 as AI investments mature and free cash flow margins expand.

Enterprise adoption remains another key driver.

Bank of America projects customers generating more than $100,000 in annual recurring revenue will increase 26.2% in 2026 before growing by more than 22% annually through 2028.

Although Figma trades at a premium valuation, with shares valued at roughly 7.6 times estimated next-12-month sales compared with Adobe's 3.2-times multiple, the brokerage believes the premium is justified.

“We acknowledge increasing AI-driven competitive risks across the design ecosystem, but believe these risks are already reflected in the current valuation,” Liani wrote.

Despite its positive outlook, Bank of America said risks remain, including slower-than-expected AI adoption, stronger competition from AI-native design platforms, and weaker monetization of AI features.

Even so, the firm believes Figma is positioned as an AI beneficiary rather than an AI casualty.