Pinterest (PINS) shares dropped sharply on Thursday, falling as much as 20% following the company’s fourth-quarter earnings miss and a cautious first-quarter outlook. The social media platform, known for its image-driven discovery engine, reported record global user growth but struggled with profitability pressures that weighed heavily on investor sentiment.
In the fourth quarter, Pinterest’s global monthly active users reached a record 619 million, surpassing analysts’ expectations of 613 million. Despite this milestone, net income plummeted 85% year-over-year to $277 million, with earnings per share coming in at 67 cents, slightly below market forecasts.
Pinterest misses Q4 estimates despite record users and 14% revenue growth.
Full-year sales and marketing spend exceeds $1.16B as advertising trends and tariffs shape outlook.Read the full story: https://t.co/tW3vcFdbZs@Pinterest #e4m #Pinterest #DigitalAdvertising… pic.twitter.com/f40lsjL7j0
— exchange4media group (@e4mtweets) February 13, 2026
The company attributed part of its revenue decline to tariffs affecting major retail advertisers, particularly in Europe, which subsequently reduced ad spending. Pinterest projected first-quarter revenue between $951 million and $971 million, below analysts’ expectations of $980 million. With headwinds expected to persist, the firm signaled that sales could continue underperforming early this year.
Pinterest recently announced a restructuring plan that will reduce its workforce by less than 15% and target approximately $100 million in annual non-GAAP operating expense savings. The company intends to reinvest roughly half of these savings into sales transformation and AI talent development.
The strategy also emphasizes expanding revenue from small-to-medium-sized businesses (SMBs) and international advertisers, which currently account for 15% of overall revenue.
To support AI initiatives, Pinterest is increasing GPU capacity and creating AI-focused teams to enhance product capabilities. While this aligns with an industry-wide trend of leveraging workforce adjustments to fund technological transformation, analysts caution that the move may be partially perceived as “AI-washing,” a term for framing routine cost-cutting as AI investment.
Pinterest’s guidance for Q1 also factors in a modest boost from foreign exchange movements, expected to contribute about three points to revenue growth. Nonetheless, the broader market reaction remains muted, as investors weigh the dual pressures of a restructuring-driven transition and external factors like tariffs.
Despite challenges, the company emphasizes that its long-term strategy focuses on diversifying revenue streams, driving international growth, and building AI-enhanced advertising products to maintain competitive relevance in a crowded social media landscape.
As Pinterest navigates a period of transition, investors will be watching closely to see whether its focus on SMBs, international markets, and AI innovation can offset near-term revenue pressures.
Success in these areas could not only stabilize earnings but also position the platform for long-term growth, potentially restoring investor confidence after a volatile start to the year.
The post Pinterest (PINS) Stock; Declines Amid Restructuring and Revenue Headwinds appeared first on CoinCentral.
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