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

Software investing often forces a choice between high-growth disruptors and mature, profitable automation leaders. Investors choosing between Figma (NYSE:FIG) and UiPath (NYSE:PATH) must decide which financial profile fits their portfolio better in 2026.

Figma provides a collaborative canvas for design teams, while UiPath focuses on business orchestration and automation. These companies are being compared because both represent critical infrastructure for digital enterprises, yet they offer vastly different levels of growth and valuation for everyday investors today.

The case for Figma

Figma provides a collaborative canvas for design and product teams, placing it among the most talked-about tech stocks in the software space. The company serves roughly 690,000 paid customers through offerings like Figma Design, FigJam, and Dev Mode. It is increasingly targeting larger enterprise organizations while implementing new pricing and billing models to improve administrator visibility.

In the fiscal year ended Dec. 31, 2025, revenue reached nearly $1.1 billion. This represents approximately 41% growth compared with the prior fiscal year. Figma reported a net loss of approximately $1.3 billion for the period, which reflects a net margin of negative 118.4%.

As of its December 2025 balance sheet, the debt-to-equity ratio is nearly 0.1x, which compares total debt to shareholder equity. Its current ratio is close to 2.6x, measuring the company's ability to cover its short-term liabilities with assets like cash. Free cash flow for the fiscal year ended Dec. 31, 2025, was nearly $246.2 million. 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 offers business orchestration and automation software that helps enterprises streamline repetitive tasks. It serves approximately 10,747 customers globally using a model that relies on channel partners and strategic alliances. UiPath derives 89% of its revenue from just 10% of its customers, and concentration like this adds a layer of risk to the business.

In the fiscal year ended Jan. 31, 2026, revenue reached close to $1.6 billion. This is an increase of nearly 12.7% year over year. The company reported net income of approximately $282.3 million for the same period, indicating a net margin of nearly 17.5%.

As of its January 2026 balance sheet, the debt-to-equity ratio is 0.0x. The current ratio is roughly 2.5x, reflecting a healthy balance of short-term assets relative to short-term liabilities. Free cash flow for the fiscal year ended Jan. 31, 2026, was approximately $352.2 million. 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 competitive threats and rapidly evolving artificial intelligence technologies that could reduce customer demand. The company relies heavily on cloud infrastructure provided by Amazon (NASDAQ:AMZN). It also faces regulatory risks concerning the use and output of AI, including potential intellectual property issues and the requirements of the EU AI Act.

UiPath deals with high customer concentration, where a small number of large clients determine a substantial portion of revenue. It competes with major enterprise platform vendors such as Adobe (NASDAQ:ADBE) and various cloud service providers. There are also risks associated with generative AI adoption, including potential liabilities from model inaccuracies or misuse of the automation platform.

Valuation comparison

UiPath appears to be the more conservative valuation choice, as it trades at a lower multiple of both sales and future earnings estimates.

Valuation metrics sourced 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 now been profitable for four straight quarters, raised its full-year outlook, and is finding new customers among businesses looking to automate repetitive tasks alongside their AI tools. The balance sheet has been cleaned up, and the stock is trading at historically low valuations even as execution keeps improving. That is a combination that tends to reward patient investors who can look past a difficult recent history.

Figma just delivered a quarter that pushed back against the narrative that AI tools would erode its design software dominance, with revenue reaccelerating to a strong pace and management raising its outlook. For a high-conviction growth investor, the reset valuation after a sharp pullback from IPO highs makes it an interesting bet.

But Figma faces a more direct and ongoing threat from AI-native design tools, is still working toward consistent profitability, and has limited history as a public company. For a long-term investor who wants software exposure without taking on maximum risk, UiPath's improving fundamentals at a depressed valuation is the more comfortable place to start.

Sara Appino has positions in Amazon. The Motley Fool has positions in and recommends Adobe, Amazon, Figma, 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.