Pinterest shares tank as Q4 results, Q1 guidance underwhelm

(Sharecast News) - Pinterest's share price was down 20% in pre-market trading on Friday after the image pinboard platform disappointed investors with its fourth-quarter results and outlook for the start of 2026. Revenues rose 14% year-on-year over the final three months of 2025 to $1.32bn, pushing full-year turnover up 16% to a record $4.22bn.

However, analysts were expecting a fourth-quarter result closer to $1.33bn, while earnings per share of $0.67 marginally missed the $0.68 consensus forecast.

The company also guided to first-quarter revenues of $951m-971m, with the mid-point some $20m under the current market forecast of $981m.

According to analysts at Stifel, ad spend by large retailers across the US and Canada has been weighed down by "tariff pressures", and this is expected to continue into the first quarter.

Nevertheless, Pinterest reported a 12% year-on-year increase in global monthly active users by the end of the year to 619m - a new all-time high.

Pinterest futures were trading at $14.83 by 1016 GMT, ahead of the opening bell on Wall Street, down 19.8% from Thursday's close of $18.54.