GET DAILY SIGNALSPinterest (PINS) Posts Record Users but Falls Short on Revenue and EPS Expectations
Key Takeaways
- Revenue reached $1.17 billion, up 12% year over year, but fell short of analyst consensus estimates of roughly $1.21 billion.
- Adjusted EPS came in at $0.46, below the $0.49 Wall Street expected, while GAAP net income was $22 million.
- Pinterest hit a record 661 million monthly active users (MAUs), up 10% year over year and 61 million higher than a year ago.
- Adjusted EBITDA totaled $339 million, a 29% margin, slightly below the roughly $348 million expected.
- Fourth-quarter revenue guidance of $1.45 billion at the midpoint landed below consensus estimates of about $1.52 billion.
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Earnings Context and Why It Matters
Pinterest's third quarter serves as an important checkpoint for its move toward a performance-plus advertising approach and greater use of AI in visual search and shopping. The company has focused recent efforts on boosting engagement and monetization, so investors pay close attention to whether the surge in users leads to lasting revenue gains. Before this report, the stock had already pulled back from its August levels, showing some investor hesitation around ad revenue momentum. With digital ad spending still sensitive to economic conditions, these results and the outlook provide insight into advertiser appetite, competition in social commerce, and PINS ability to improve revenue per user.
Breaking Down the Reported Results
PINS reported third-quarter 2026 revenue of $1.17 billion, an 11.9% increase from $1.05 billion a year earlier, though it missed the roughly $1.21 billion consensus. Adjusted EPS landed at $0.46 versus the $0.49 analysts had projected, while GAAP net income reached $22 million and diluted GAAP EPS was $0.04. Adjusted EBITDA came to $339 million for a 29% margin, just under the expected $348 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
User metrics stood out positively. Monthly active users hit a record 661 million, up 10% year over year. Average revenue per user rose slightly to $1.80 from $1.78. Regionally, U.S. and Canada revenue increased 14% to $894 million, Europe held steady near $193 million, and Rest of World climbed 24% to $87 million. Operating margin fell to 2.6% from 5.6%, and free cash flow declined 6% to $300 million.
For the fourth quarter, management guided revenue between $1.425 billion and $1.475 billion, equating to 8% to 12% growth, with adjusted EBITDA of $538 million to $588 million. Both midpoints came in below expectations.
How the Market Responded
Shares fell sharply in after-hours trading on the mixed results. The stock dropped about 14% to near $17.19 right after the release, reflecting the revenue and EPS shortfalls along with softer fourth-quarter guidance. The lower operating margin and limited ARPU improvement relative to user growth added to the pressure. While the new MAU high highlighted strong audience growth, investors focused on the slower monetization path and cautious holiday outlook.
What to Watch in the Quarters Ahead
Going forward, the key question is whether PINS can convert its record user base into stronger revenue per user. The performance advertising initiatives and AI shopping tools remain central, and the holiday quarter will show how well advertiser demand holds up. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Execution against guidance will matter. The revenue midpoint of $1.45 billion points to 8% to 12% growth, a step down from prior quarters and including a modest currency headwind. Investors will track whether results stay within the range and how the EBITDA guidance unfolds.
Additional areas to monitor include Europe, where revenue was flat, and whether Rest of World maintains its stronger pace. Margin trends and any updates on the competitive ad environment or AI tool scaling will also shape views on the path to better monetization.
Using AI Tools in My Research
When reviewing results like these, I often rely on Tickeron’s AI Screener to quickly compare PINS against peers on fundamentals, patterns, and signals. It helps surface relevant context without manual effort and supports more informed decisions around names in the consumer internet space.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PINS in downward trend: price expected to drop as it breaks its higher Bollinger Band on October 13, 2026
PINS broke above its upper Bollinger Band on October 13, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 43 similar instances where the stock broke above the upper band. In 33 of the 43 cases the stock fell afterwards. This puts the odds of success at 77%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for PINS moved out of overbought territory on October 16, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In 20 of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at 67%.
The Momentum Indicator moved below the 0 level on October 26, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PINS as a result. In 67 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 72%.
The Moving Average Convergence Divergence Histogram (MACD) for PINS turned negative on October 27, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 35 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 74%.
The 50-day moving average for PINS moved below the 200-day moving average on October 27, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PINS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
PINS moved above its 50-day moving average on October 28, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PINS crossed bullishly above the 50-day moving average on October 16, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 79%.
Following a +4.88% 3-day Advance, the price is estimated to grow further. Considering data from situations where PINS advanced for three days, in 222 of 298 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
The Aroon Indicator entered an Uptrend today. In 152 of 204 cases where PINS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 2 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. PINS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 80 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.094) is normal, around the industry mean (1.008). P/E Ratio (59.771) is within average values for comparable stocks, (-58.119). Projected Growth (PEG Ratio) (0.238) is also within normal values, averaging (17.274). Dividend Yield (0.000) settles around the average of (0.970) among similar stocks. P/S Ratio (2.632) is also within normal values, averaging (71.888).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PINS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
an operator of a pinboard-style photo-sharing website
Industry InternetSoftwareServices
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