Pinterest, Inc. (PINS) shares plummeted 17.10% in post-market trading following the release of its fourth-quarter financial results, which fell short of analyst expectations and included disappointing guidance for the current quarter.

The image-sharing platform reported adjusted earnings per share of $0.67 for Q4 2025, missing the consensus estimate of $0.69. Revenue for the quarter reached $1.32 billion, below expectations of $1.33 billion, despite representing a 14% year-over-year increase. Other key metrics, including adjusted EBITDA and adjusted net income, also came in below Wall Street forecasts.

More concerning to investors was the company's outlook for the first quarter of 2026. Pinterest forecast revenue in the range of $951 million to $971 million, significantly below the average analyst estimate of $980.1 million. The weak guidance underscores the company's ongoing struggle to compete for digital advertising dollars against larger, deep-pocketed rivals like TikTok and Meta's Instagram and Facebook, which continue to dominate the market with their massive user bases and advanced AI-powered advertising tools.

The disappointing results come on the heels of a recent restructuring announcement in which Pinterest said it would cut about 15% of its workforce—a move some investors viewed as "defensive" rather than strategic. The company aims to reallocate resources toward AI-focused initiatives, including its Performance+ ad suite, in an attempt to better compete in the crowded digital advertising landscape.