Pinterest’s Strategic Shift: CTV and AI Fuel Growth Outlook
Pinterest, Inc. (NYSE: PINS) is experiencing a positive market reaction following an upward revision of its first-quarter 2026 sales guidance. This boost comes on the heels of completing the acquisition of tvScientific, Inc., signaling a strategic move towards connected TV (CTV) advertising and enhanced AI capabilities.
Expanding into Connected TV
The December 2025 acquisition of tvScientific is central to Pinterest’s growth strategy. By integrating tvScientific’s outcome-based CTV platform, Pinterest aims to extend its AI-powered performance advertising beyond mobile devices and onto the rapidly expanding television streaming market. This move positions Pinterest to capture a share of the growing CTV advertising budgets, competing with established players like Meta, Alphabet and TikTok.
AI-Powered Advertising and User Experience
The integration of tvScientific isn’t Pinterest’s only investment in future growth. The company is also rolling out more AI-powered tools designed to reshape the user experience, focusing on personalization and shopping features. This dual approach – expanding advertising reach through CTV and enhancing user engagement through AI – is intended to drive revenue growth.
Financial Performance and Outlook
Pinterest has increased its first-quarter sales guidance to a range of $958 million to $978 million, a slight adjustment from the previous outlook of $951 million-$971 million. Adjusted EBITDA is now projected to be between $163 million and $183 million, compared to a prior estimate of $166 million-$186 million.
Recent earnings revealed fourth-quarter revenue of $1.32 billion, slightly below analyst expectations. However, total revenue increased by 14% year-over-year, with global monthly active users rising 12% to 619 million. Average revenue per user globally reached $2.16, while in the U.S. And Canada, it was $9.41.
Navigating a Challenging Market
Pinterest’s strategic adjustments come at a time when the company has faced stock market pressure. Over the past year, NYSE:PINS has declined 57.7%, and over five years, it has fallen 80.5%. The recent moves – the tvScientific acquisition, AI investment, and board refresh – represent a concerted effort to align the company’s product, advertising formats, and leadership with evolving market demands.
The Future of Performance Advertising
The acquisition of tvScientific and the focus on AI-powered tools highlight a broader trend in the advertising industry: the shift towards performance-based advertising and data-driven personalization. Advertisers are increasingly seeking platforms that can demonstrate a clear return on investment, and AI is playing a crucial role in delivering targeted ads and measuring their effectiveness.
Frequently Asked Questions
- What is connected TV (CTV)? CTV refers to television sets connected to the internet and used for streaming video content.
- What does Pinterest do? Pinterest operates a pinboard-style photo-sharing website where users can create and manage image collections based on interests and hobbies.
- Who is Pinterest’s CEO? William J. Ready is the CEO of Pinterest, Inc.
- What is Pinterest’s current market cap? As of February 19, 2026, Pinterest’s market cap is $10.95 billion.
PINS Price Action: As of Wednesday, February 19, 2026, Pinterest shares were trading at $16.39, up 5.71% for the day.
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