Pinterest (NYSE:PINS) shares dropped 9.0% in pre-market trading after the social media platform released quarterly results that exceeded expectations but issued forward guidance that failed to meet investors’ hopes.
For the second quarter of 2026, Pinterest reported revenue of $1.18 billion and adjusted earnings per share of $0.43, outperforming Wall Street forecasts of $1.15 billion in revenue and $0.36 per share.
Slower growth forecast weighs on sentiment
Despite the stronger-than-expected quarter, investors focused on the company’s outlook for the current quarter.
Pinterest projected third-quarter revenue of between $1.19 billion and $1.21 billion, representing annual growth of 13% to 15%. That would mark a slowdown from the 18% year-over-year revenue growth achieved during the second quarter.
Chief Financial Officer Julia Donnelly said the moderation reflected several temporary factors, including Amazon Prime Day moving from the third quarter into the second quarter this year, the absence of advertising spending linked to the FIFA World Cup that benefited the previous quarter, and modest foreign exchange headwinds.
She also warned that spending on AI computing infrastructure and token usage is expected to continue increasing as Pinterest expands its artificial intelligence capabilities.
Chief Executive Bill Ready nevertheless described AI as “a clear accelerant” for the company’s business.
AI spending and competition remain key concerns
The broader market provided little explanation for Pinterest’s decline, with both the S&P 500 and Dow Jones rising around 0.3%, while the Nasdaq traded broadly unchanged.
Instead, investors concentrated on company-specific concerns, particularly the outlook for advertising growth and the rising cost of artificial intelligence investment.
Large digital advertising platforms such as Meta and Alphabet continue to face similar questions over the returns generated by AI spending, while Pinterest’s cautious guidance reinforced concerns that competition for online advertising budgets is becoming increasingly intense.
Strong results fail to prevent post-earnings pullback
Pinterest shares had gained almost 6% during Tuesday’s regular trading session ahead of the earnings announcement, reflecting optimistic expectations before the results were released.
The combination of slower projected revenue growth, increasing AI-related costs and elevated investor expectations triggered a sharp post-earnings sell-off, leaving the stock trading near $23.28 in pre-market dealings, well below its 52-week high of $39.83.
Pinterest stock price
