Pinterest Inc (NYSE:PINS) shares rose almost 10% to just shy of $23 following the company’s first-quarter 2026 results, which came in ahead of expectations on revenue and earnings and were supported by stronger user growth and an upbeat second-quarter outlook.
The company reported adjusted earnings of $0.27 per share, above estimates of $0.22.
Revenue reached $1.01 billion, above expectations of $966 million. Revenue increased 18% year-over-year, or 15% on a constant currency basis.
Global monthly active users climbed 11% to a record 631 million.
Pinterest also posted a GAAP net loss of $74 million for the quarter, compared with net income of $9 million a year earlier, while adjusted EBITDA rose 20% to $207 million.
Free cash flow totaled $312 million, and the company completed $2 billion in previously announced share repurchases.
For the second quarter, Pinterest guided revenue of $1.13 billion to $1.15 billion, ahead of the $1.12 billion consensus estimate, representing 14% to 16% year-over-year growth.
Adjusted EBITDA is expected to range between $256 million and $276 million.
Pinterest CEO Bill Ready said the company is seeing continued momentum driven by its visual search and discovery tools, alongside ongoing efforts to build an AI-driven advertising platform aimed at improving monetization.
“As we continue building an AI-powered ads platform that delivers performance for advertisers, we remain focused on ensuring monetization more fully reflects the strength of our engagement,” Ready said.
Jefferies analysts described the quarter as a “better print, same debate,” noting that revenue growth of 15% on a constant currency basis came in ahead of the high end of guidance, while second-quarter revenue guidance also landed roughly 2% above consensus at the midpoint.
The firm highlighted improving advertising dynamics, including less-than-expected weakness from large retailers and early signs of ad model improvements late in the quarter.
Jefferies also pointed to a re-acceleration in US and Canada revenue growth, which rose 12% excluding TVScientific, up from 9% in the prior quarter, breaking a seven-quarter deceleration trend.
However, the analysts maintained a cautious stance, reiterating a ‘Hold’ rating with an improved price target of $21, up from $17.
They noted that despite the revenue upside, full-year EBITDA margin guidance was unchanged, implying limited incremental flow-through. Rising sales and marketing expenses, up roughly 25% year over year, were also seen as a headwind to profitability.
Jefferies added that while advertising diversification is improving and macro conditions appear stable, particularly outside large retailers, the company still has “plenty to prove” in expanding into direct-response advertising budgets at scale.
The firm said it continues to expect fiscal year 2027 EBITDA of approximately $1.6 billion, with valuation based on 7.5 times that estimate.