Overview
Figma Inc shares increased by approximately 4.5% on Thursday after HSBC upgraded Adobe Inc from Hold to Buy, easing investor concerns that artificial‑intelligence‑driven design tools could disrupt the design‑software market.
Adobe Performance and Guidance
HSBC analyst Stephen Bersey lifted Adobe’s price target to $308, up from $282, citing the company’s second‑quarter fiscal 2026 results, which showed revenue growth of 12.7% year‑over‑year. Adobe also guided fiscal 2026 revenue growth of 11.8% for the full year. The firm reported that its total remaining performance obligations (RPO) and current RPO rose 13.1% YoY in the quarter.
AI‑Related Revenue
Adobe’s AI‑first revenue grew three‑fold year‑over‑year, although it accounted for only about 2% of second‑quarter fiscal 2026 revenue. The company noted that after a post‑pandemic surge in fiscal 2021, both revenue and RPO growth have settled into a low‑double‑digit compound annual growth rate, with no evident disruption from AI‑based competitors.
Analyst Commentary
Bersey stated that the market has yet to see any material impact from AI‑powered competitors and that the perceived risk from new AI‑based design tools is overstated. He highlighted the “sticky” nature of Adobe’s platform, driven by user workflow familiarity and the integration of new AI‑powered features, concluding that the reward now outweighs the risks and recent results remain strong.
Implications for Figma
Figma’s stock had declined sharply since its 2025 IPO amid fears of AI disruption; the positive signal from Adobe’s upgrade and the analyst’s view that AI risks are limited helped lift Figma’s valuation, reflected in the 4.5% share price gain.
Publication Note
The article was generated with AI assistance and reviewed by an editor.