NEW YORK, August 4, 2026, 18:09 EDT
- U.S. markets were shut for regular trading. In early after-hours dealings, the initial indication was $23.25, a decline of 9.1% as of 18:05 EDT.
- Pinterest projects its third-quarter revenue will rise between 13% and 15%, compared with 18% growth posted in the second quarter. The midpoint of this forecast is in line with analyst expectations.
- Approximately 70% of adjusted EPS growth stems from a reduction in diluted shares, according to a straightforward earnings bridge.
Pinterest Inc. NYSE:PINS dropped in after-hours trading on Tuesday, recording a broad earnings beat. Market attention shifted to decelerating revenue growth and gains in per-share results attributed to share repurchases.
Non-GAAP net income increased by 9.3%, as diluted share count declined 16.3%. Adjusted earnings per share were up 30.3% to $0.43. Approximately 70% of this EPS growth was due to the reduction in shares.
The operating report for the quarter was strong. All dollar amounts are in millions.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $1,179.7 | $998.2 | +18% |
| GAAP net income or loss | $(46.7) | $38.8 | NM |
| Non-GAAP net income | $249.5 | $228.3 | +9% |
| Adjusted EBITDA | $311.3 | $250.8 | +24% |
| Monthly active users | 640 million | 578 million | +11% |
| Free cash flow | $269.9 | $196.7 | +37% |
The beat was wide-ranging. Revenue surpassed the analyst estimate of $1.15 billion by 2.6%. Adjusted EPS exceeded the consensus of $0.36 by roughly 19%. However, Pinterest reported a GAAP loss of $46.7 million.
The following EPS bridge is based on diluted shares for 2025, with the calculation reflecting Pinterest’s published non-GAAP numbers.
| Driver | EPS contribution | Portion of EPS gain |
|---|---|---|
| Non-GAAP earnings increase | $0.031 | 30% |
| Reduced diluted shares | $0.070 | 70% |
| Total adjusted EPS rise | $0.101 | 100% |
Pinterest invested over $2 billion in share repurchases this year at an average price of $18.17 each, retiring almost 111 million shares. Shares outstanding at the end of June were 14.9% lower than in December. Despite the recent decline, the provisional share price remained 28% higher than the buyback average.
The capital return took place as liquidity buffers shrank. Cash and marketable securities declined to $1.27 billion, down from $2.47 billion at the end of the year. Net convertible notes increased to $981 million.
The company continues to see its biggest monetization gap among international users. Figures for revenue and user shares are based on company-reported data.
| Region | MAUs | User share | Revenue | Revenue share | ARPU |
|---|---|---|---|---|---|
| U.S. and Canada | 106 million | 16.6% | $880 million | 74.6% | $8.30 |
| Europe | 157 million | 24.5% | $213 million | 18.1% | $1.35 |
| Rest of world | 377 million | 58.9% | $87 million | 7.4% | $0.23 |
Users in markets outside the U.S. and Canada made up 59% of the total, yet generated just 7% of total revenue. ARPU in the U.S. and Canada was approximately 36 times greater. This disparity highlights significant potential for organic growth, but progress is still at an early stage.
Chief Executive Bill Ready stated, “AI is at the heart of our momentum and is a clear accelerant for our business.” Business Wire
Chief Financial Officer Julia Donnelly expressed a more reserved outlook internationally. She noted that structural shifts were continuing to affect Europe and overseas markets. In Asia, regulatory challenges for cross-border retailers persisted through the third quarter.
Updated third-quarter guidance moves attention from the earnings beat to questions about its sustainability. Midpoint figures are based on Pinterest’s provided ranges and actual reported numbers.
| Metric | Q2 actual | Q3 midpoint | Change or read-through |
|---|---|---|---|
| Revenue | $1.180 billion | $1.200 billion | Up 1.7% quarter-over-quarter |
| Revenue growth | 18% | 14% | Decrease of 4 percentage points |
| Analyst revenue estimate | $1.150 billion | $1.200 billion | Outperformed Q2; Q3 matches forecast |
| Adjusted EBITDA | $311 million | $345 million | Rises 10.8% from quarter to quarter |
| Adjusted EBITDA margin | 26.4% | 28.8% | Improves by roughly 240 basis points |
The revenue midpoint of $1.20 billion is in line with consensus estimates, offering no buffer in the guidance despite a robust quarter. The EBITDA midpoint of $345 million continues to indicate a quicker pace of profit growth.
Donnelly lifted the adjusted EBITDA margin forecast for the full year to approximately 30%, up from 29%. In Q2, revenue growth received a boost of roughly 1.5 points due to event timing, a benefit that is not expected to recur, while currency fluctuations are set to become a mild headwind.
Snap Inc. NYSE:SNAP established a tough standard for peers the previous day. The company’s revenue for the second quarter increased by 19%. Snap shares climbed 14.8% during Tuesday’s regular trading.
Pinterest’s cash close increased by 5.0% during the past week from July 28. The after-hours quote of $23.25 positions the stock 4.6% beneath that prior closing level. The fall following the earnings report wiped out the gains made during the week’s regular sessions.
In the coming week, investors will consider whether rising margins can offset slowing sales. The main focus is on whether increased international monetization can boost profits without requiring a further substantial share cut.
Risks are still significant. Stock-based compensation increased by 41% to $320 million, marginally surpassing adjusted EBITDA. Spending on AI infrastructure, stronger competition in advertising, and regulatory scrutiny abroad may restrain anticipated improvements in margins.
The selloff raises expectations. Investors are now looking for underlying profit growth to keep pace with the declining number of shares.
Related articles: NYSE:PINS
