Figma (FIG) is back in focus after its second quarter 2026 earnings on 5 August, where revenue outpaced expectations, full year guidance was raised, and heavy AI investment weighed on both margins and the share price.

Despite the earnings beat and higher full year revenue guidance on 5 August, Figma’s share price has fallen 2.84% over the past day and 4.24% over the past week. The 30 day share price return of 10.33% and 90 day share price return of 16.16% suggest some recent momentum. However, the year to date share price return of 38.07% lower and 1 year total shareholder return decline of 70.18% show how far sentiment has cooled since earlier levels.

If Figma’s AI push has you thinking about other software opportunities, this could be a useful moment to see what else is moving among 71 profitable AI stocks that aren't just burning cash.

With Figma raising revenue guidance, yet the stock still well below its highs, the market reaction looks mixed. Has the recent pullback already priced in the AI spending drag, or is most of the upside already in the share price?

Most Popular Narrative: 4.2% Overvalued

Figma last closed at $23.29, slightly above the most followed narrative fair value of $22.36, which frames the current debate around its AI heavy spending.

A great product can still be an expensive stock. For now, I’m more confident in Figma’s competitive position, but I would want clearer operating leverage before becoming materially more optimistic about the valuation.

Want to see how this valuation view holds together? The core assumptions blend fast growing revenue, ambitious long term margins and a premium future earnings multiple. Curious which numbers sit under each of those levers.

Result: Fair Value of $22.36 (OVERVALUED)

However, Figma’s heavy AI spending and current net loss of $1,526.793 million could pressure margins further and challenge the view that earnings power will soon catch up.

Another View: SWS DCF model points to upside

The narrative fair value of $22.36 suggests Figma is slightly expensive at $23.29. The SWS DCF model presents a different perspective. It estimates a future cash flow value of $39.23, which is 40.6% above the current share price and screens as undervalued. Which lens do you rely on more at this point?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Figma for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals around Figma’s valuation and future earnings power, this is a good moment to move quickly and test the numbers yourself against your own assumptions. To weigh both the concerns and the potential upside in one place, start with these 4 key rewards and 3 important warning signs.

Looking for more investment ideas beyond Figma?

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• Target steadier compounding by reviewing companies that focus on resilience and capital preservation through the 83 resilient stocks with low risk scores.
• Spot potential value opportunities by checking companies that combine quality fundamentals with appealing pricing using the 52 high quality undervalued stocks.
• Hunt for potential future standouts by scanning companies with strong fundamentals that are not widely followed yet through the screener containing 21 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.