Pinterest Sales Transformation Early, but UCAN Acceleration Encouraging; Remain Neutral, $27 PT

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Pinterest

Sales Transformation Early, but UCAN Acceleration

Encouraging; Remain Neutral, $27 PT

Neutral

PINS, PINS US

Price (04 Aug 26):$25.58

▲Price Target (Dec-27):$27.00

Prior (Dec-26):$25.00

PINS delivered 2Q upside, but the 3Q revenue guide came in below investor

expectations. The 3Q revenue growth guide of 13-15% Y/Y reflects a deceleration

from 18% Y/Y in 2Q, and while we note that the high end of the 3Q guidance range

is similar to 2Q growth ex-1x items (FX, Prime Day timing, World Cup), it does

not imply a revenue growth acceleration. PINS is continuing to make progress on

AI-related products to drive engagement (Pinterest Assistant) and monetization

(Performance+), and early signs of PINS’ GTM transformation are already paying

early dividends in UCAN, which saw accelerating Y/Y growth in 2Q. PINS also

raised its 2026 adj. EBITDA margin guide from ~29% to ~30%, which flows

through the strong 1H performance, and the company remains confident in

achieving 30-34% long-term adj. EBITDA margins. That being said, PINS is still

early in its sales go-to-market (GTM) transformation, especially in international

markets, where we are projecting moderating growth. Our 2027 estimates come up

~1-2% across revenue and adj. EBITDA. We remain Neutral rated and are

establishing a December 2027 price target of $27 based on ~6x 2028E adj.

EBITDA of ~$2.06B.

KEY THOUGHTS AFTER CALLS WITH MANAGEMENT

Solid User & Engagement Trends, with UCAN Driving Revenue Growth.

2Q MAUs of 640M (11% Y/Y; 9M net adds) came in above consensus of

635M, driven entirely by ROW, with UCAN flat, and Europe down Q/Q. 2Q

revenue of $1,180M (18% Y/Y, 17% FXN) came in above management’s

$1,133-1,153M guide, driven by AI-related ad platform improvements and

early dividends from PINS’ GTM transformation, particularly in UCAN,

which saw accelerating revenue growth to 18% Y/Y in 2Q (vs 13% Y/Y in 1Q).

PINS expects 3Q revenue of $1,190-1,210M (13-15% Y/Y), which includes

strong growth in UCAN, but in Europe, more difficult Y/Y comparisons

coupled with incremental pressure from Asia-based cross-border retailer

…