Economy

Pinterest Shares Fall After Mixed Earnings Report and Weak Forecast

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Nov 5, 2025

THE BARE STORY

Pinterest's stock price dropped approximately 20% after the company released its third-quarter financial results and a weaker-than-expected forecast for the fourth quarter. The decline followed a report where the company’s adjusted earnings per share fell short of analyst expectations.

For the third quarter, Pinterest posted adjusted earnings of 38 cents per share, below the 42 cents that analysts had projected. The company’s total revenue of $1.05 billion met projections. According to company statements, quarterly sales grew 17% year-over-year, while global monthly active users reached 600 million, ahead of estimates. For the fourth quarter, Pinterest issued revenue guidance between $1.31 billion and $1.34 billion, with the midpoint trailing analyst forecasts.

Pinterest’s finance chief, Julia Donnelly, said the company experienced "moderating ad spend" from some larger U.S. retailers facing margin pressure from tariff-related issues. Donnelly stated that she expects these trends to continue into the next quarter, compounded by what she identified as a new tariff from President Donald Trump on home furnishings. The company also reported that its U.S. and Canada sales of $786 million missed estimates.

In response to the report, several banks lowered their price targets for the stock and at least one analyst firm downgraded its rating. However, other analysts maintained buy ratings, citing long-term potential. Pinterest CEO Bill Ready stated that the company's investments in artificial intelligence and product innovation were "paying off," and he noted the recent rollout of an AI-powered shopping assistant.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• Pinterest’s financial performance failed to meet key analyst targets. The company’s adjusted earnings of 38 cents per share for the third quarter came in below the 42 cents that analysts had projected. This miss on profitability contributed to the negative market reaction following the report's release.

• The company’s forecast for the upcoming quarter signals weakness. Pinterest issued revenue guidance for the fourth quarter between $1.31 billion and $1.34 billion. The midpoint of this range trailed analyst forecasts, indicating that the company anticipates a slowdown relative to market expectations.

• Management identified ongoing headwinds expected to impact future results. The company’s finance chief, Julia Donnelly, stated that Pinterest was experiencing "moderating ad spend" from some large U.S. retailers due to tariff-related margin pressures. Donnelly also noted that she expects these trends to continue, compounded by a new tariff on home furnishings.

How it may affect me

As a U.S. reader:

• Investors holding Pinterest stock, including through retirement funds, will see a significant loss in value due to the company's 20% price decline.

• Users of the platform may experience new features, such as an AI-powered shopping assistant, as the company continues to invest in product innovation.

• The report suggests tariffs on goods are pressuring U.S. retailers, causing them to reduce advertising spending, which may signal broader economic trends affecting consumers.

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