Key Takeaways
- Figma posted $333.4 million in Q1‑2026 revenue, a 46% year‑over‑year increase, and forecasts Q2 sales of $348‑$350 million.
- IBM’s Q2‑2026 results fell short of expectations, with a 15% EBIT margin and a 42% YoY decline in Z‑systems mainframe sales amid the AI boom.
- Despite IBM’s long‑standing scale, its revenue volatility reflects the cyclical nature of hardware and consulting services, whereas Figma’s steady growth highlights strong demand for its collaborative design platform.
- Both companies remain holdings of The Motley Fool, but Figma was omitted from the latest Stock Advisor “10 best stocks” list, underscoring differing outlooks for near‑term performance.
- Investors should weigh Figma’s consistent top‑line traction against IBM’s ongoing transformation toward AI‑focused cloud and consulting services when evaluating each stock.
Figma’s Revenue Engine and Recent Product Updates
Figma generates revenue by selling subscriptions to its collaborative, browser‑based design and prototyping software. At its annual conference in June 2026 the firm unveiled new timeline‑based animation tools, aiming to deepen its value proposition for product teams. The company reported “approximately -43% net income margin for the quarter ended March 31, 2026,” reflecting heavy investment in product development while still delivering strong top‑line results.
Q1‑2026 Performance: Figma’s 46% YoY Surge
According to the latest filings, Figma’s Q1 sales reached $333.4 million, representing “amazing 46% year‑over‑year growth.” This trajectory is expected to continue, with management forecasting Q2 revenue between $348 million and $350 million. The steady climb underscores Figma’s ability to attract and retain customers despite competitive pressures from AI‑driven image‑generation tools.
Market Reaction to Figma’s Stock
Even as fundamentals improved, Figma’s share price dipped to a 52‑week low of $16.60 in April 2026 after Wall Street voiced concerns that rapid AI image generation could erode demand for traditional design software. The article notes, “Figma’s sales trend reveals this isn’t happening, and in fact, its business is thriving,” suggesting that investor fears may be overstated relative to actual performance.
IBM’s Broad Technology Portfolio
International Business Machines (NYSE:IBM) delivers “comprehensive technology solutions, consulting services, and hybrid cloud infrastructure to global enterprise clients.” Over its century‑plus history, IBM has pivoted from legacy hardware to high‑growth areas such as artificial intelligence, cloud, and consulting, seeking to capture newer revenue streams while maintaining its entrenched enterprise base.
IBM’s Q2‑2026 Results and AI‑Driven Volatility
IBM disclosed a shortfall in preliminary results on July 14, 2026, while recording a 15% EBIT margin for the quarter ended June 30, 2026. The company’s Z‑systems line of AI‑enhanced mainframes, which were “a hot seller when they launched last year,” saw Z sales down 42% year over year in Q2 2026. This decline, coupled with missing Wall Street’s revenue expectations amid the AI boom, sent IBM shares to a 52‑week low of $199.19 on July 23, 2026.
Why Revenue Trends Matter for Retail Investors
Revenue shows investors the total money coming into a business before expenses are deducted. Tracking this figure helps investors understand the total scale and top‑line growth trajectory of a business. For Figma, the consistent upward trend signals durable demand for its design collaboration platform. For IBM, the fluctuating revenue pattern reflects the cyclical nature of selling hardware and consulting services, even as the firm shifts toward AI‑focused offerings.
Investment Considerations: Figma vs. IBM
The Motley Fool’s Stock Advisor team recently identified what they believe are the 10 best stocks for investors to buy now, and Figma was not among them. The advisory service highlights its track record of beating the S&P 500 by 4×, noting that past picks like Netflix (December 17, 2004) and Nvidia (April 15, 2005) have generated extraordinary returns on early investments. While Figma’s fundamentals appear strong, its exclusion from the list suggests analysts see greater near‑term upside elsewhere. Both Figma and IBM remain positions held by Robert Izquierdo and are recommended by The Motley Fool, which maintains a disclosure policy outlining its conflicts of interest.
All quoted passages are taken verbatim from the original Motley Fool article “Figma vs. IBM: What Revenue Growth Trends Tell Investors About the Young Software Design Company and the Veteran Artificial Intelligence Tech Giant,” published July 24, 2026.
https://finance.yahoo.com/markets/stocks/articles/figma-vs-ibm-revenue-growth-223501181.html