Figma's 44% May Rally: Proof the Claude Design Panic Was Overdone - But Not a Reason to Chase

What more do investors want from Figma after a 44% May comeback? The stock has roared back from what looked like a capitulation, fueled by a Q1 earnings report that made the Claude Design panic look like overreaction.

I must admit, I was among those who watched the April selloff and wondered whether Anthropic's Claude Design had cracked the design tool market open. Then Figma reported, and the numbers didn't just survive - they accelerated. Revenue grew 46% year-over-year to $333.4 million in Q1, up from 40% in the prior quarter. Non-GAAP operating margin hit 16%. Free cash flow margin reached 27%, with $89 million in FCF and $1.6 billion in cash on the balance sheet. Management raised full-year 2026 revenue guidance by $55 million to a midpoint of roughly $1.425 billion, implying about 35% growth.