Figma vs IBM: Revenue Trends Reveal Clear Winner
💡 Key Takeaway
Figma's steady 46% revenue growth outshines IBM's volatile sales, making FIG a more attractive growth stock despite AI concerns.
What Happened: Revenue Trends Diverge for Figma and IBM
Figma reported consistent quarter-over-quarter revenue growth for eight consecutive quarters, with Q1 2026 revenue of $333.4 million, up 46% year-over-year. The company forecasts Q2 2026 revenue between $348 million and $350 million, indicating continued momentum.
IBM, meanwhile, disclosed a shortfall in preliminary Q2 2026 results on July 14, 2026, with revenue of $17.2 billion for the quarter ended June 30, 2026. Its zSystems mainframe sales dropped 42% year-over-year, contributing to volatile revenue trends.
Figma's subscription-based model for collaborative design software has driven steady top-line growth, while IBM's mix of hardware, consulting, and cloud services leads to lumpy revenue.
The contrasting trends highlight the different business models: Figma's recurring software revenue versus IBM's project-based and product-cycle-driven sales.
Both companies saw their stocks hit 52-week lows in 2026—Figma at $16.60 in April and IBM at $199.19 in July—but for different reasons: AI competition fears for Figma, and missed expectations for IBM.
Why It Matters: Revenue Growth Signals Future Stock Performance
Revenue growth is a key indicator of a company's market demand and scalability. Figma's consistent 46% year-over-year growth suggests strong product-market fit and customer adoption, despite fears that AI image generation would hurt its business.
IBM's volatile revenue, including a 42% drop in zSystems sales, raises concerns about its ability to sustain growth in the competitive AI infrastructure space. Missing Wall Street expectations further erodes investor confidence.
For investors, Figma's predictable growth trajectory supports a higher valuation multiple, while IBM's lumpy sales may warrant a discount. The data suggests Figma is winning in its niche, while IBM faces headwinds from product cycles and execution risks.
Figma's stock decline due to AI fears appears overblown given its actual revenue performance, presenting a potential buying opportunity. IBM's stock weakness may persist until it demonstrates more consistent growth.
Ultimately, revenue trends provide a clear lens: Figma is thriving, while IBM is navigating choppy waters.
Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.
Bobby Insight
Figma is a strong buy on revenue growth; IBM is a hold until stability improves.
Figma's subscription model drives predictable growth, and its stock dip from AI fears is unwarranted. IBM's hardware cycle and consulting revenue create uncertainty, making it less attractive for growth investors.
What This Means for Me
