New York, Feb 12, 2026, 6:55 PM (EST) — After-hours trading.
- Pinterest shares dropped after hours as its first-quarter revenue outlook came in short of what analysts had expected.
- Fourth-quarter revenue climbed 14% for the company, with user numbers hitting an all-time high.
- Investors want to see if pricing gets a boost from the AI-fueled ad campaign and the revamped sales strategy.
Pinterest stock dropped roughly 3% to $18.54 in after-hours trading Thursday, recovering somewhat after a steeper 12% plunge earlier in the session. The company projected first-quarter revenue between $951 million and $971 million, missing the $980.1 million average analyst estimate from LSEG.
Investors want to see if Pinterest can actually translate its growing user base into more predictable ad revenue. When it comes to digital advertising, scale is critical—smaller players like Pinterest are usually the first to get squeezed when ad budgets get cut or redirected.
Right now, investors are zeroed in on two things: whether Pinterest can drive ad prices higher, and if it can do so without burning through its margin. The company’s guidance? Cautious, straight out of the gate.
Pinterest reported a 14% jump in fourth-quarter revenue to $1.319 billion, with adjusted earnings coming in at 67 cents per share. Global monthly active users hit 619 million, up 12%. CEO Bill Ready said the company remains “laser-focused on execution” as it revamps its sales and go-to-market strategy. For the first quarter, Pinterest sees adjusted EBITDA between $166 million and $186 million. SEC
Adjusted EBITDA, a profit metric that excludes select expenses, gives investors a rough sense of operating leverage. Thursday’s focus shifted squarely to demand. Investors were left trying to parse whether the first-quarter story was more about execution or the competitive landscape.
Pinterest has ramped up its automation push, rolling out tools aimed at making campaign management less hands-on for advertisers. Still, the ad market remains packed, with bigger players relentlessly advancing their own AI-powered ad products.
Pinterest moved last month to trim just under 15% of staff, shifting focus—and funding—toward its AI teams. The company put a $35 million to $45 million range on expected pretax restructuring charges tied to the overhaul. Emarketer’s Jeremy Goldman, responding to the news, described the action as “more defensive than strategic.” Reuters
Here’s the risk: if the first-quarter forecast overshoots because advertisers keep holding back, and the sales revamp drags its feet on pricing, things can stall. The shares could end up cycling through weaker growth outlooks, added cost-cutting pressure, and then fresh doubts swirling around product momentum.
The regular session kicks off Friday, Feb. 13, giving traders a clearer look as earnings reactions shift out of thin after-hours trading and into heavier flows. Next up: management needs to show, fast, that ad performance is rebounding in this first-quarter stretch.
