Pinterest shares fell sharply on Friday, February 13, 2026, after the company released its fourth-quarter and full-year 2025 earnings report and provided a revenue outlook that disappointed investors. Shares were down significantly in early trading, as analysts expressed ongoing concerns about the impact of artificial intelligence on the platform’s future.
The company reported revenue of $1.319 billion for the fourth quarter and $4.222 billion for the full year 2025, representing 14% year-over-year growth, according to a press release. Despite achieving record user numbers – ten consecutive quarters of growth, according to CEO William Ready – the revenue guidance for the first quarter of 2026, projecting 11-14% growth, fell short of expectations.
Pinterest is aggressively investing in artificial intelligence, positioning itself as an “AI-powered visual-first shopping platform.” The company’s “AI Everywhere” strategy is now integrated across its user experience, advertising, and internal operations. A key component of this strategy is the beta launch of the Pinterest Assistant, a voice-activated and visual AI tool intended to streamline search, discovery, and shopping. Early testing indicates users utilizing the assistant generate 25 percent more commercial queries, suggesting increased purchase intent.
Several proprietary AI models have been introduced, including OmniSage, designed to enhance recommendations and personalization based on the platform’s “taste graph”; PinFM, a foundation ranking model leveraging user lifetime actions for deeper personalization; and Navigator I, a large-scale ranking model that the company claims reduces costs by 90 percent compared to third-party models. Pinterest also stated that approximately 50 percent of latest code is now generated using AI tools, improving internal productivity.
The company’s AI-powered advertising suite, Performance Plus, is demonstrating positive results, delivering a 24 percent higher conversion lift for retail advertisers compared to traditional campaigns. Pinterest has also acquired tvScientific, a performance advertising platform focused on Connected TV, aiming to integrate television-driven inspiration with measurable digital shopping actions.
Despite these investments and positive indicators in some areas, analysts remain cautious. Concerns center on the potential for disruption from broader AI advancements and the company’s ability to maintain its competitive edge. The disappointing revenue outlook has fueled these anxieties, contributing to the decline in share price.
