Figma vs. IBM: What Revenue Growth Trends Tell Investors About the Young Software Design Company and the Veteran Artificial Intelligence Tech Giant

Figma: Sustaining Consistent Revenue Growth

Figma (NYSE:FIG) generates revenue by selling subscriptions to its collaborative, browser-based design and prototyping software.

It introduced new timeline-based animation tools at its annual conference in June 2026, and it reported approximately -43% net income margin for the quarter ended March 31, 2026.

IBM: Navigating Revenue Fluctuations

International Business Machines (NYSE:IBM) delivers comprehensive technology solutions, consulting services, and hybrid cloud infrastructure to global enterprise clients.

It disclosed a shortfall in preliminary results on July 14, 2026, while recording a 15% EBIT margin for the quarter ended June 30, 2026.

Why Revenue Matters 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.

Quarterly Revenue for Figma and International Business Machines

Data source: Company filings. Data as of July 24, 2026.

Foolish Take

Venerable IBM’s revenue towers over newcomer Figma’s sales, but that’s to be expected given the former has existed for over a century. IBM has transformed its business substantially over that time. It now focuses on the fast-growing artificial intelligence sector, providing software and cloud infrastructure for customers seeking to adopt AI, as well as an army of consultants to help clients navigate how to do so.

IBM’s volatile sales trend speaks to the choppy nature of selling hardware and consulting services. Its zSystems line of computer mainframes incorporating AI were a hot seller when they launched last year, but in the second quarter of 2026, Z sales were down 42% year over year. This combined with missing Wall Street’s Q2 revenue expectations amid the AI boom understandably worried investors, sending IBM shares to a 52-week low of $199.19 on July 23.

Figma’s revenue trend speaks volumes about the success of its business. The company’s Q1 sales of $333.4 million represented amazing 46% year-over-year growth as it continued to produce quarterly increases. That trend is expected to extend into Q2 with a forecast of revenue between $348 million to $350 million.

Figma’s design products are clearly winning over customers. Yet its stock fell to a 52-week low of $16.60 in April after Wall Street became concerned AI’s ability to quickly generate images on the fly would take business away from Figma. The company’s sales trend reveals this isn’t happening, and in fact, its business is thriving.

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Robert Izquierdo has positions in Figma and International Business Machines. The Motley Fool has positions in and recommends Figma and International Business Machines. The Motley Fool has a disclosure policy.

Figma vs. IBM: What Revenue Growth Trends Tell Investors About the Young Software Design Company and the Veteran Artificial Intelligence Tech Giant was originally published by The Motley Fool