Figma vs. UiPath: Which Technology Stock Is a Better Buy in 2026?

As digital design and process automation become essential for global enterprises, choosing between high-growth disruptors is key. Figma (NYSE:FIG) and UiPath (NYSE:PATH) offer contrasting paths for investors seeking software exposure in 2026.

Figma focuses on a collaborative design canvas for product teams, while UiPath provides orchestration software to automate repetitive enterprise workflows. Both companies are scaling within the large organization segment, but they offer very different financial profiles. This comparison evaluates their growth rates, profitability, and current valuations to help you decide which stock fits your portfolio.

The case for Figma

Figma sells a collaborative design platform used by teams to build digital products. As software continues to grow, Figma has carved out a unique niche among tech stocks by focusing on real-time collaboration. The company serves roughly 690,000 paid customers but faces significant revenue concentration as it targets large enterprise organizations.

In the fiscal year ended Dec. 31, 2025, revenue reached nearly $1.1 billion, a 41% increase year over year. The P/S ratio is 8.5x, measuring its market value against sales over the past twelve months. Figma reported a net loss of approximately $1.25 billion, resulting in a negative net margin of roughly 118.4% according to its latest annual report.

As of its December 2025 balance sheet, the debt-to-equity ratio was 0.1x, which compares total debt to shareholder equity to measure financial leverage. The current ratio, measuring the ability to cover short-term debts with short-term assets, was nearly 2.6x. Free cash flow, which is cash from operations minus capital expenditures, was roughly $246.2 million, but note that stock-based compensation represented roughly 544.2% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.

The case for UiPath

UiPath provides orchestration and automation software for enterprises worldwide. Its strategy relies on a channel-partner model to serve over 10,000 customers across financial services and healthcare. The company recently expanded partnerships with Snowflake (NYSE:SNOW) to develop AI-driven solutions and BDO USA for audit automation.

In the fiscal year ended Jan. 31, 2026, revenue reached close to $1.6 billion, a growth rate of 12.7% year over year. The Forward P/E is 17.0x, which compares its share price to future earnings estimates. UiPath achieved net income of roughly $282.3 million, producing a net margin of approximately 17.5% in its latest annual report.

As of its January 2026 balance sheet, the debt-to-equity ratio was 0.0x, meaning the company has no total debt relative to its equity. The current ratio was roughly 2.5x, suggesting a strong ability to meet immediate financial obligations. Free cash flow, which is cash from operations minus capital expenditures, was nearly $352.2 million, but note that stock-based compensation represented roughly 78.3% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparison

Figma faces intense competition from established software companies like Adobe (NASDAQ:ADBE) and Salesforce (NYSE:CRM). Rapidly evolving AI technologies could render existing features obsolete or introduce new security and regulatory hurdles. The company also faces risks from its reliance on Amazon Web Services and its transition toward usage-based billing models.

UiPath carries risks related to significant customer concentration, with a large portion of revenue coming from its top 10% of clients. The company faces stiff competition in the agentic automation market from large platform vendors and AI research organizations. Acquisitions like Peak and WorkFusion also introduce potential integration challenges, while its dual-class ownership structure may cause stock price volatility.

Valuation comparison

UiPath currently presents a more conservative valuation profile with lower price multiples and positive net income compared to Figma's high-growth but unprofitable model.

Metric	Figma	UiPath
Forward P/E	77.9x	17.0x
P/S ratio	8.5x	4.1x

Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

I'd go with UiPath. After years of losses and missed expectations, the company has posted four consecutive GAAP profitable quarters and raised its full-year outlook. The automation platform is finding new customers among enterprises deploying AI across their operations, and the stock is trading at historically low valuations even as execution keeps improving. That combination of improving fundamentals and a depressed entry point is exactly what patient investors should be looking for.

Figma is doing more right than its post-IPO stock performance gives it credit for. Revenue grew faster than analysts expected in its most recent quarter and the full-year outlook was raised. But the stock fell roughly 16% in after-hours trading following the report, as the cost of building AI tools into the platform weighed heavily on margins. Operating losses widened significantly compared to the same period last year.

Figma is defending its turf, but investors are being asked to fund that defense at a cost that is still unclear. For a moderate, long-term investor who wants software exposure without taking on maximum risk, UiPath is the more comfortable starting point right now.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Figma, Salesforce, Snowflake, and UiPath. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.