Pinterest Reports $1.17 Billion in Third-Quarter Revenue, Falls 9.6% After Hours
Key Facts
Pinterest reported revenue of $1.17 billion in the third quarter of 2026, below analysts’ estimate of $1.21 billion, according to Investing.com’s coverage of the results. Adjusted EPS was $0.46, compared with an estimate of $0.49. Following the announcement, the stock fell 9.6% in after-hours trading on Thursday, October 29, according to the same source. The figures put the gap between results and expectations at the center of the market reaction. The company’s shares had closed at $20.58 on October 27 and then at $20.92 on October 28, before the results were released.
Net income under U.S. accounting standards was $22 million, while adjusted EBITDA reached $339 million, with a 29% margin, according to Investing.com. The difference between net income and the adjusted measure presents two distinct views of financial performance during the period. The source also reported free cash flow of $300 million, down 6% from $318 million in the same period a year earlier. The year-over-year decline in cash flow alongside revenue growth points to an operating trajectory that was uneven across metrics.
Revenue performance varied by region: Europe revenue was flat in the third quarter, while average revenue per user there fell 7%, according to the specific angle in the evidence. By contrast, growth accelerated in the United States and Canada and in the rest of the world, according to the same evidence. These figures highlight a contrast between a growing global user base and weak monetization in the European market. The regional comparison also shows the company’s performance relying on more than one growth pace, with revenue and average revenue per user following different paths. The evidence provided no other detailed regional figures or direct explanation for the divergence.
Commenting on products, CEO Bill Ready said that “premium visual search and shopping experiences powered by AI make Pinterest more valuable to users and advertisers alike,” according to Investing.com. In the second quarter, Ready said that “AI is at the heart of our momentum and is a clear accelerant to our business,” according to the results statement filed with the U.S. Securities and Exchange Commission. In that statement, the company linked AI to personalizing the user experience, improving advertiser performance and opening long-term monetization opportunities. These remarks place search and shopping tools within the company’s account of product development for users and advertisers. They do not change the fact that third-quarter revenue and adjusted EPS fell short of market estimates.
For the fourth quarter, Pinterest forecast revenue of between $1.425 billion and $1.475 billion, representing year-over-year growth of between 8% and 12%, with an assumed limited negative foreign-exchange impact, according to Investing.com. It also forecast adjusted EBITDA of between $538 million and $588 million. The outlook sets a revenue growth range slower than the 12% year-over-year growth recorded in the third quarter, at the upper end of the forecast range. The outlook for the coming period followed results below analyst estimates and a negative after-hours reaction in the stock. Investors’ attention now turns to the company’s ability to deliver the revenue and earnings range it set for the fourth quarter.