Bank of America reinstated coverage on two major design software companies with sharply contrasting ratings, reflecting divergent views on how artificial intelligence is reshaping the industry. While Adobe (ADBE) received an Underperform rating and a $190 price target, Figma (FIG) was assigned a Buy rating with a $30 target. The brokerage argued that generative AI strengthens Figma’s competitive position but presents increasing headwinds for Adobe.
For Adobe, BofA analysts led by Tal Liani highlighted that AI-first annual recurring revenue (ARR) remains below 2% of total ARR, with no clear path to near-term reacceleration of growth. Revenue growth is expected to slow from 10.5% in 2025 to 8.8% in 2027. The analysts also noted that casual users are particularly vulnerable to AI alternatives, while even some professional users may shift to lower-cost tools. Leadership uncertainty after the simultaneous departures of the CEO and CFO “heightens risk around strategy, continuity, and leadership stability.”
In contrast, Figma is positioned as an AI beneficiary. The collaborative design platform has integrated AI into its monetization model via seat-based subscriptions and usage-based AI credits. In Q1 2026, 75% of enterprise customers that exceeded their AI credit limits purchased additional credits, while over 95% remained active. Figma ended the quarter with 690,000 paid users, up 53% year-over-year. BofA forecasts revenue growth of 35.6% in 2026 and 23% in 2027, with improving margins.
Despite the stark analyst views, Adobe shares still rose 4.6% on Tuesday, and Figma climbed over 6%, suggesting markets are weighing the longer-term AI dynamics differently.
