Finance
Pinterest Forecasts Downbeat Revenue as It Battles for Digital Ad Dollars; Shares Plunge
Published by Global Banking & Finance Review®
Posted on February 12, 2026
2 min readLast updated: February 12, 2026
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Pinterest forecasts lower Q1 revenue amid competition from TikTok and Meta. The company focuses on AI strategies to attract advertisers.
Pinterest Projects Lower Revenue Amidst Digital Ad Competition
Pinterest's Revenue Challenges in the Digital Ad Landscape
Feb 12 (Reuters) - Pinterest forecast first-quarter revenue below estimates on Thursday, underscoring the image-sharing platform's ongoing struggle to compete for advertising dollars against deep-pocketed platforms, sending its shares down 12% in extended trading.
Social media giants like TikTok and Meta's Instagram and Facebook continue to take a larger chunk of the market as their massive user bases and advanced artificial intelligence tools for ad creation keep luring advertisers.
The forecast comes on the heels of stronger results from rivals Snap and Reddit, both of which have reported upbeat holiday-quarter revenue.
Competition from Social Media Giants
But Pinterest aims to attract more marketers via its AI-powered Performance+ ad suite — having hired former advertising head of Spotify, Lee Brown — and longtime Amazon marketing executive Claudine Cheever, to stand out in a crowded ad market.
AI Strategies and Workforce Changes
Last month, Pinterest had cut about 15% of its workforce, as it plans to reallocate resources to its AI-focused roles and strategy, which failed to spark enthusiasm from investors, who looked at the move as "more defensive than strategic."
Quarterly Revenue Insights
For the first quarter, the company sees revenue in the range of $951 million to $971 million, below the analysts' average estimate of $980.1 million, according to data compiled by LSEG.
The company's ended 2025 with 619 million global monthly active users, up from the 553 million it had reported in 2024, a sign that Pinterest's core product remains appealing to consumers seeking inspiration for everything from home decor to fashion and recipes.
Revenue for the fourth quarter grew 14% to $1.32 billion, largely in line with estimates of $1.33 billion.
(Reporting by Kritika Lamba in Bengaluru; Editing by Alan Barona)
Key Takeaways
- •Pinterest forecasts lower Q1 revenue, below estimates.
- •Competition from TikTok and Meta affects Pinterest's ad revenue.
- •Pinterest invests in AI-powered ad tools to attract marketers.
- •The company cut 15% of its workforce to focus on AI strategies.
- •Global monthly active users increased to 619 million in 2025.
Frequently Asked Questions about Pinterest forecasts downbeat revenue as it battles for digital ad dollars; shares plunge
1What is advertising revenue?
Advertising revenue is the income generated from selling advertising space or time to businesses and organizations, allowing them to promote their products or services.
2What is artificial intelligence?
Artificial intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn like humans, often used in data analysis and marketing.
3What are social media platforms?
Social media platforms are online services that allow users to create, share, and interact with content and other users, such as Facebook, Instagram, and Pinterest.
4What is quarterly revenue?
Quarterly revenue is the total income generated by a company during a specific three-month period, often used to assess financial performance.
5What is user growth?
User growth refers to the increase in the number of active users on a platform or service over a specified period, indicating its popularity and market reach.
