Pinterest Reports Strong User Growth But Lowers Q4 Outlook

BREAKING: Pinterest just reported significant user growth but has disappointed investors with its fourth-quarter outlook, leading to a drop in share prices during after-hours trading.

On November 5, 2025, Pinterest announced a revenue of $1.05 billion for the third quarter, marking a 17% increase year-on-year. The platform now boasts 600 million monthly active users, a surge of 8% compared to the prior year—the fastest growth since 2021. However, despite these positive metrics, the company’s forecast for Q4 has raised alarms among investors.

Pinterest’s projections indicate revenue between $1.31 billion and $1.34 billion, falling short of analyst expectations for stronger growth. This cautious outlook stems from a decrease in advertising spending in key markets, particularly the United States and Canada. Major retailers and brands are pulling back on online ad campaigns, and Asian sellers in the U.S. are also adjusting budgets due to new import regulations.

CEO Bill Ready reassured stakeholders by emphasizing the company’s ongoing investment in artificial intelligence. He stated that these new advertising tools aim to tailor campaigns more effectively to users’ interests, which could stabilize revenue growth and strengthen Pinterest’s competitive stance against giants like Meta and TikTok.

In an exciting development, Pinterest is stepping into the future of shopping with AI-powered features designed to enhance user experience. The newly introduced feature, Styled for You, allows users to combine clothing and accessories into personalized outfits. When users tap on items in a collage, they receive AI-driven suggestions based on their saved pins, mimicking the experience of having a personal shopping assistant.

Pinterest’s ambition to evolve into an AI-powered shopping assistant is underway, with these features initially rolling out in the United States and Canada. The company’s strategy highlights its commitment to innovation in a rapidly changing digital landscape.

As Pinterest navigates these challenges and opportunities, all eyes will be on how it executes its AI strategy and whether it can recover investor confidence ahead of the holiday shopping season. Stay tuned for further updates on this developing story.