Figma Q4 Results Beat Street Expectations, So Why Are Analysts Slashing Targets?

RBC Capital lowered its target on Figma to $31 from $38 and kept a ‘Sector Perform’ rating on the shares, according to TheFly.

• Morgan Stanley said that significant revenue revisions in the firm's forecast are somewhat offset by downward pressure on free cash flow due to a lower operating margin posture. 
• Stifel lowered its price target to $30 from $40 and kept a ‘Hold’ rating on Figma shares, saying it was waiting for clarity on margin implications.
• Figma on Wednesday posted a 40% year-on-year growth in quarterly revenue, which came in at $303.8 million, and beat street expectations of $293.15 million.

Figma Inc. (FIG) reported market-beating fourth-quarter (Q4) 2025 results and outlook on Wednesday, sending shares of the digital design company higher in after-hours trading. At the time of writing, FIG stock climbed more than 6%.

Despite the upbeat performance, RBC Capital lowered its target on Figma to $31 from $38 and kept a ‘Sector Perform’ rating on the shares, according to TheFly. Meanwhile, Morgan Stanley cut the price target on the company to $44 from $48 and maintained an ‘Equal Weight’ rating.

Goldman Sachs, Stifel, JPMorgan, and Wells Fargo also lowered price targets on Figma.

Analyst Rationale

RBC Capital’s analyst Rishi Jaluria said that while Figma delivered a "solid" Q4 earnings beat, the firm would prefer to wait for a better entry point before turning more constructive.

Morgan Stanley’s Elizabeth Porter also noted the company’s strong Q4 results, adding, however, that significant revenue revisions in the firm's forecast are somewhat offset by downward pressure on free cash flow due to a lower operating margin posture.

Stifel lowered its price target to $30 from $40 and kept a ‘Hold’ rating on Figma shares, saying it was waiting for clarity on margin implications. Meanwhile, Goldman Sachs lowered its price target on Figma to $35 from $40 and maintained a ‘Neutral’ rating.

Earnings Snapshot

Figma posted a 40% year-on-year growth in quarterly revenue, which came in at $303.8 million, and beat street expectations of $293.15 million, as per data from Fiscal.ai. Meanwhile, the company reported diluted earnings per share of $0.08 compared to expectations of $0.06.

The company said it expects revenue between $315 million and $317 million in the first-quarter (Q1) of 2026, a 38% year-on-year growth at the midpoint, versus analyst expectations of $292.5 million.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around FIG shares jumped from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volumes increased to ‘extremely high’ from ‘low’ levels.

One bullish user highlighted the company’s 40% growth, adding that Figma had gone from being a design tool to a product development operating system.

Another bullish user said that the market was not expecting a ‘beat-and-raise’ result, adding that it was ‘inevitable’ for the shares to hit $45-$50.

Shares of FIG have declined more than 77% in the past year.

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