Pinterest Revenue Falls Short as Tariffs Hit Retail Advertisers

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2.18.2026

Quick Facts

Pinterest Q4 2025 revenue hit $1.32 billion, missing estimates of $1.33 billion as tariffs reduced retail ad spending
Stock plunged 17% to close at $14.67, pushing market cap down to $10.05 billion from $12.52 billion
Company plans layoffs of less than 15% of workforce and pivot to court smaller advertisers

Pinterest CEO Bill Ready said the company is “not satisfied with our Q4 revenue performance” after tariffs dampened advertising spending from major retail clients. The social media platform’s revenue of $1.32 billion fell short of the $1.33 billion analyst estimate.

Ready blamed tariffs for creating an “exogenous shock” that hit Pinterest’s retail advertiser base. “Our high mix of large retailers relative to some of our peers has resulted in us feeling more of an impact,” he said during the earnings call.

The tariff impact created a “second-order effect” as global retailers pulled back European ad spending while recalibrating budgets, CFO Julia Donnelly explained. This created a “more meaningful headwind than we expected,” she added.

Pinterest’s stock dropped as much as 20% in after-hours trading and closed down 17% at $14.67. The selloff erased $2.47 billion in market value, pushing the company’s valuation to $10.05 billion.

Multiple analysts downgraded the stock. Citi cut Pinterest from Buy to Neutral with a $19 price target, down from $38. JPMorgan, Deutsche Bank, Loop Capital, Evercore ISI, Baird, RBC, and Bank of America also issued downgrades.

Despite the revenue miss, Pinterest reported record user growth. Monthly active users reached 619 million, up 12% year-over-year, marking the company’s 10th consecutive quarter of record-high engagement.

Pinterest announced plans to lay off less than 15% of its workforce and reduce office space. The company will reallocate resources to AI-focused teams and pivot toward smaller advertisers to reduce dependence on large retailers.

The company added two executives in recent weeks. Lee Brown joined as the first Chief Business Officer in late January, while Claudine Cheever became Chief Marketing Officer in February.

For Q1 2026, Pinterest expects revenue between $951 million and $971 million, below analyst estimates of $980 million. The guidance reflects continued pressure from tariff-related headwinds affecting retail ad spending.