Pinterest (NYSE:PINS) Issues Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Pinterest (NYSE:PINS) issued its quarterly earnings results on Tuesday. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.36 by $0.07, FiscalAI reports. The company had revenue of $1.18 billion for the quarter, compared to analysts’ expectations of $1.15 billion. Pinterest had a return on equity of 8.26% and a net margin of 7.64%.The firm’s revenue for the quarter was up 18.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.33 earnings per share.

Here are the key takeaways from Pinterest’s conference call:

• Strong Q2 results: Revenue exceeded $1 billion for the fourth consecutive quarter, rising 18% year over year to $1.18 billion, while monthly active users reached a record 640 million, up 11%.
• AI-driven ad products are improving advertiser performance and supporting broader demand; Pinterest said Performance+ campaigns are generating stronger ROAS, while Smart Assembly improved click-through rates by 6% in early testing.
• Management raised its full-year 2026 adjusted EBITDA margin outlook to approximately 30% from 29%, supported by revenue outperformance, disciplined headcount management, and cost-efficient use of open-source AI models.
• Pinterest Assistant is now available to most U.S. users and is integrated throughout the shopping journey, with management expecting monetization to be embedded from launch rather than added later; open-source models reportedly run at less than 8% of comparable closed-model costs.
• International monetization remains a challenge, with Europe and rest-of-world growth pressured by difficult comparisons, go-to-market restructuring, and regulatory actions affecting Asia-based cross-border retailers; management expects some disruption to continue in Q3.

Pinterest Stock Up 5.9%

Shares of PINS traded up $1.43 during trading hours on Tuesday, hitting $25.59. The company had a trading volume of 21,786,888 shares, compared to its average volume of 17,909,400. The stock has a market capitalization of $14.33 billion, a price-to-earnings ratio of 53.31, a P/E/G ratio of 1.42 and a beta of 0.90. The firm has a fifty day moving average price of $21.80 and a 200-day moving average price of $20.51. Pinterest has a 52-week low of $13.84 and a 52-week high of $39.83. The company has a debt-to-equity ratio of 0.34, a quick ratio of 4.23 and a current ratio of 4.23.

Insider Activity

In related news, Director Benjamin Silbermann sold 46,875 shares of the stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $22.54, for a total transaction of $1,056,562.50. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Wanjiku Juanita Walcott sold 14,208 shares of the firm’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $19.65, for a total transaction of $279,187.20. Following the sale, the insider owned 691,840 shares of the company’s stock, valued at approximately $13,594,656. This represents a 2.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 370,720 shares of company stock worth $7,892,627 over the last three months. 8.09% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Pinterest

Several institutional investors and hedge funds have recently made changes to their positions in the company. State Street Corp boosted its stake in shares of Pinterest by 52.6% during the 4th quarter. State Street Corp now owns 21,492,169 shares of the company’s stock worth $556,432,000 after acquiring an additional 7,412,213 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Pinterest by 15.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 27,809,693 shares of the company’s stock worth $719,994,000 after purchasing an additional 3,669,476 shares in the last quarter. Man Group plc increased its stake in shares of Pinterest by 185.7% in the 3rd quarter. Man Group plc now owns 4,983,427 shares of the company’s stock worth $160,317,000 after purchasing an additional 3,239,222 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in Pinterest by 15.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 17,818,418 shares of the company’s stock worth $638,969,000 after purchasing an additional 2,319,964 shares during the period. Finally, AQR Capital Management LLC raised its holdings in Pinterest by 31.0% in the 4th quarter. AQR Capital Management LLC now owns 8,142,880 shares of the company’s stock worth $210,819,000 after purchasing an additional 1,926,101 shares during the period. Institutional investors own 88.81% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on PINS. Piper Sandler restated a “neutral” rating and set a $26.00 target price (up from $21.00) on shares of Pinterest in a report on Tuesday, May 5th. Guggenheim reissued a “buy” rating and set a $24.00 price target on shares of Pinterest in a research report on Monday, June 15th. Morgan Stanley boosted their price objective on shares of Pinterest from $27.00 to $30.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 5th. BMO Capital Markets reaffirmed an “outperform” rating and set a $30.00 target price on shares of Pinterest in a research note on Tuesday, May 5th. Finally, Wells Fargo & Company lifted their target price on shares of Pinterest from $28.00 to $30.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Seventeen investment analysts have rated the stock with a Buy rating and nineteen have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $27.69.

About Pinterest

Pinterest, Inc operates a visual discovery platform that helps users find inspiration and ideas for projects ranging from home design and fashion to cooking and travel. Users create and curate “Pins” — images or videos linked to content — organized on thematic boards. The service is available through its website and mobile applications and emphasizes personalized recommendations and visual search to surface relevant content based on user interests.

The company’s primary revenue model is advertising, offering promoted content formats that integrate into user feeds and search results.