Pinterest Falls About 7% as Q3 Revenue Misses Its Own Outlook on Stalled Europe Sales; Q4 Guide Implies 10% Growth

PINS shares fell about 7% in Friday trading after Pinterest's third-quarter revenue of $1,174 million, up 12% from a year earlier, landed below the company's own outlook of $1,190 million to $1,210 million. The stock had dropped as much as 14.2% to $17.19 immediately after Thursday's report, from a regular-session close of $19.92.

The shortfall came from Europe. Revenue there was flat at $193 million, and because European users kept growing, average revenue per user in the region fell 7%. That flat reading follows 12% growth in the second quarter and 41% a year ago. The core market held up better: U.S. and Canada revenue grew 14% to $894 million, and global monthly active users reached a record 661 million, up 10%. Total growth of 12% compares with 18% in each of the first two quarters of 2026.

Profit also trailed expectations. Adjusted EPS of $0.46 rose from $0.38 a year earlier but missed the roughly $0.49 consensus, and revenue missed the $1.21 billion analysts expected. GAAP net income fell 77% to about $22 million, according to the company's release, as cloud costs and stock-based compensation weighed on margins. For the fourth quarter, Pinterest guided to revenue of $1,425 million to $1,475 million, or 8% to 12% growth, a midpoint of 10%.

Analysts trimmed targets on Friday: Barclays cut its price target to $24 from $31 and kept an equal-weight rating, and Cantor Fitzgerald cut to $23 from $30 while keeping overweight, according to MarketBeat. The key question is whether Europe's stall reflects a temporary pullback by Asian cross-border retailers facing new European rules or a broader cooling in ad demand. A fourth-quarter result near the top of the range, and any sign of European growth returning during the holiday season, would ease the slowdown narrative.