Pinterest, Inc. (PINS) is experiencing double-digit revenue growth with projected earnings-per-share growth of 27.5% by 2026. The company anticipates revenues rising from $4.22 billion in 2025 to $4.87 billion in 2026 and $5.45 billion in 2027. Currently, PINS trades at a valuation of 2.47X forward sales, significantly lower than the Zacks sub-industry average of 3.93X and the S&P 500’s 4.93X.
In the second quarter, Pinterest reported a 25% increase in non-GAAP cost of revenue, totaling $245 million, primarily due to investments in AI and enhanced graphics processing capacity. Despite this, adjusted EBITDA grew by 24%, with a margin of 26%. Internationally, while revenue outside the U.S. and Canada rose (38% in Rest of World), monetization remains considerably lower compared to North America, with average revenue per user at $1.35 in Europe and just $0.23 in the Rest of World.
As of now, PINS holds a Zacks Rank of #3 (Hold), reflecting a cautious outlook due to a 5.2% decline in the 2026 earnings estimate over the past month. While the valuation discount and growth opportunities present potential, the company faces challenges in execution and rising competitive pressure from major players like Meta Platforms and Snap Inc.
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