Pinterest (PINS) stock plunged about 20% in Tuesday’s extended trading session, as the social media platform missed earnings estimates for the third quarter. Also, the company’s fourth-quarter revenue outlook failed to impress Wall Street. During the earnings call, Pinterest’s CFO Julia Donnelly stated that the company witnessed some “pockets of moderating ad spend” in the U.S. and Canadian markets in the third quarter.
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Pinterest Reports Dismal Q3 Earnings
Pinterest’s Q3 2025 revenue grew about 17% year-over-year to $1.05 billion, driven by continued expansion of the company’s user base, product innovation, and investments in artificial intelligence (AI).
The company reported adjusted earnings per share (EPS) of $0.38, up 19% from the prior-year quarter. While Pinterest’s Q3 revenue was in line with Wall Street’s expectations, adjusted EPS fell short of the consensus estimate of $0.42 per share.
Meanwhile, Pinterest’s global monthly active users (MAUs) expanded 12% year-over-year to 600 million in Q3 2025. Average revenue per user (ARPU) grew 5% to $1.78, with PINS’ international users spending less than its domestic users.
In comparison, Pinterest’s larger rival Meta Platforms (META) reported better-than-expected Q3 results, driven by solid advertising revenue. However, META stock declined post-earnings, as the company revealed a $15.9 billion tax charge related to the implementation of President Donald Trump’s One Big Beautiful Bill and concerns about high AI spending.
PINS’ Q4 Guidance Fails to Impress
Pinterest expects Q4 2025 revenue to be in the range of $1.313 billion to $1.338 billion, representing 14% to 16% year-over-year growth. Meanwhile, the company expects Q4 2025 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to be in the range of $533 million to $558 million.
The company’s adjusted EBITDA outlook met expectations, but the midpoint of the Q4 revenue guidance ($1.33 billion) missed the Street’s estimate of $1.34 billion.
During the earnings call, Donnelly mentioned some areas of moderating ad spend in the U.S. and Canada in Q3, as larger U.S. retailers face tariff-led margin pressure. The CFO added that the company expects the broader trends in Q3 and market uncertainty to continue in the fourth quarter, along with the addition of a new tariff impacting the home furnishings category. In September, U.S. President Donald Trump announced 10% tariffs on imported timber and lumber. Trump also imposed 25% duties on kitchen cabinets, bathroom vanities, and related furniture.
Is PINS a Good Stock to Buy?
Currently, Wall Street has a Strong Buy consensus rating on Pinterest stock based on 22 Buys and four Holds. The average PINS stock price target of $44.33 indicates about 35% upside potential.
However, these ratings/price targets are expected to be revised as analysts react to the Q3 print.
