Figma shares fell 9.4% on the back of a broader software sector sell-off triggered by disappointing guidance from ServiceNow, Microsoft and SAP. The drop extends Figma’s decline to 80% from its post-IPO peak. As a result, the company’s enterprise-value-to-sales multiple has compressed to 9.4x, down from nearly 20x just six months ago, reflecting investor reassessment of premium cloud software valuations under pressure from AI disruption concerns.

Despite the stock weakness, Figma reported 38% year-over-year revenue growth in its most recent quarter, driven by strong adoption of its collaborative design platform. The company is rolling out new AI-powered features, including Figma Make for automated layout and style suggestions, and has formed strategic partnerships with OpenAI to embed advanced generative models directly into its workflow. Usage-based pricing trials have begun with a subset of enterprise customers, with early results suggesting a 15% lift in average revenue per user over six weeks.

Investor concerns around competition from Anthropic’s Claude Cowork and other AI design entrants appear overstated given Figma’s deep collaboration moat and third-party integrations. Management pointed to a growing pipeline of over 300 large enterprise deals and expanding usage in education and non-tech verticals. Analysts expect revenue acceleration in fiscal 2026, forecasting 45% growth as AI enhancements and pricing changes unlock incremental monetization across Figma’s 4 million global users.