Evercore ISI has downgraded Pinterest Inc. (NYSE: PINS) from Outperform to In Line and assigned a $25.00 price target, responding to the social platform's recently released fourth-quarter results. The brokerage framed the quarter as a "Miss & Lower" outcome, signaling a deterioration in the business trends that had supported more bullish ratings.
Market observers note a clear slowdown in top-line momentum. Excluding currency effects, Pinterest's revenue growth moved from 17% year-over-year in the second quarter to 16% in the third quarter, then decelerated further to 13% in the fourth quarter. Evercore ISI now cites a projection of roughly 9-10% revenue growth for the first quarter, a marked downshift relative to recent pace. By comparison, the company's trailing twelve-month revenue growth stands at 16.79% and it retains a high gross profit margin of 79.99%.
Evercore ISI identified two principal factors behind its reassessment. First, the firm pointed to softness in U.S. retail advertising - a trend it tied to tariff-related dynamics that have damped spending. Second, Evercore expressed increasing concern about competitive intensity from large platforms such as Google and Meta, as well as potential pressure from Reddit and other entrants. Looking further ahead, the research house warned that competitive headwinds may escalate in 2026 and 2027 with what it termed the "re-emergence of TikTok U.S. and the emergence of ChatGPT."
Despite the downgrades and concerns, analysts still view Pinterest as a profitable operator. Evercore described the company as "a well-run company that is solidly profitable," while noting that Pinterest has shifted from premium ad revenue growth rates to expanding more slowly than the broader category of digital advertising.
The near-term financials contributed to the reevaluation by multiple brokerages. Pinterest reported fourth-quarter 2025 earnings per share of $0.67, which marginally missed the consensus of $0.68. Revenue for the quarter came in at $1.319 billion, slightly below the expected $1.33 billion.
In response to the results and the weaker outlook, UBS cut its price target to $26 from $40 but kept a Buy rating in place. UBS also trimmed its 2026 revenue forecast by 2% and lowered its adjusted EBITDA projection by 9%, reflecting a more cautious view on the company's near-term profitability and top-line trajectory.
Baird also retooled its stance. The firm downgraded Pinterest from Outperform to Neutral and reduced its price target substantially to $20 from $35. Baird pointed to challenges with larger advertisers and recent restructuring as drivers of a "near-term downshift in expectations," while expressing the view that growth could stabilize and margins might improve in the latter half of 2026.
From a valuation and technical perspective, Pinterest trades with a price-to-earnings ratio of 6.49. Some technical indicators suggest the stock is trading in oversold territory according to RSI readings reported by InvestingPro. These measures did not dissuade analysts from reining in growth expectations, but they do highlight that the stock is priced with conservative assumptions about future expansion.
Bottom line - The combination of slowing revenue growth, a marginal earnings miss in the fourth quarter, and increased concern about competitive pressures prompted Evercore ISI to downgrade Pinterest to In Line with a $25 target. UBS and Baird responded by lowering targets and adjusting ratings, underscoring cross-market reevaluation of the company as it navigates weak U.S. retail ad demand and heightened platform competition.