• Pinterest reported its second quarter 2025 earnings in the past week, revealing sales of US$998.23 million and net income of US$38.76 million, both improving from the previous year; the company also provided third quarter revenue guidance in the range of US$1.03 billion to US$1.05 billion with anticipated 15% to 17% year-over-year growth.
• An interesting finding from the results is that international revenue growth, especially in Europe and the Rest of World, surprised analysts and has become a significant driver in Pinterest’s overall performance and diversification.
• With strong international revenue growth highlighted in the latest results, we'll examine how this development could reshape Pinterest’s investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Pinterest Investment Narrative Recap

To own Pinterest stock, investors need to believe in the company's ability to grow global user engagement and effectively monetize both its domestic and international audiences, especially as digital ad markets evolve. The recent quarterly results highlight surging international revenue growth, which provides a key short-term catalyst for the business, while the main risk remains ongoing pressure on ad pricing, however, this event doesn't appear to significantly alter either dynamic right now.

Among Pinterest's latest corporate announcements, its strong guidance for third quarter revenue growth of 15% to 17% year-over-year stands out. This outlook aligns directly with the international momentum seen in the last results and reinforces how new markets could support earnings even if domestic ad pressures persist.

By contrast, investors should stay aware of ongoing volatility in global ad spending, as this could quickly affect revenue and...

Read the full narrative on Pinterest (it's free!)

Pinterest's outlook anticipates $5.8 billion in revenue and $959.4 million in earnings by 2028. This is based on an expected 15.2% annual revenue growth rate, but also a projected decrease in earnings of about $940.6 million from current earnings of $1.9 billion.

Uncover how Pinterest's forecasts yield a $42.03 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Fifteen members of the Simply Wall St Community estimate Pinterest's fair value anywhere from US$30 to US$70.58 per share, reflecting widely varying outlooks. While international expansion currently drives growth, continued ad pricing pressure could challenge the company's results, tap into these diverse community perspectives to see which scenarios resonate with you.

Explore 15 other fair value estimates on Pinterest - why the stock might be worth over 2x more than the current price!

Build Your Own Pinterest Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pinterest research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Pinterest research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pinterest's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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