Piper Sandler lowered its price target on Figma Inc to $30 from $35, while maintaining an Overweight rating.
Figma's Q1 revenue grew 46% YoY, beating estimates by 5.5%. Net dollar retention hit 139%, the highest in over two years.
Q2 revenue growth guidance of 40% YoY is 9 percentage points above consensus. The company raised its FY2026 revenue growth midpoint to 35% from ~30%.
Q1 gross margins of 82.3% missed expectations, declining 3.8 percentage points QoQ due to higher inference costs. Operating margin guidance was raised to 9%.
Piper Sandler trimmed its target due to lower software multiples across the sector.
RBC Capital cut its target to $28, Oppenheimer reiterated a Perform rating.
