Pinterest Inc. (NYSE:PINS) shares jumped 10% on Tuesday after the company unveiled a $1 billion strategic investment from Elliott Investment Management and outlined plans to significantly expand its share repurchase efforts.
The social media company said it will deploy the proceeds from Elliott’s investment toward a $1 billion accelerated share repurchase (ASR) program. At the same time, Pinterest’s Board approved a new $3.5 billion buyback authorization, replacing the existing repurchase plan.
In addition to the ASR, the company plans to repurchase up to another $500 million of stock using cash on hand through a 10b5-1 trading plan. Including $473 million already bought back this year under its previous program, Pinterest expects total share repurchases of around $2 billion in the first half of 2026.
As part of the transaction, Elliott will acquire $1 billion in convertible senior notes due March 1, 2031. The notes carry a 1.75% annual interest rate and have an initial conversion price of approximately $22.72 per share, representing a 30% premium to the company’s March 2, 2026 closing price.
“Today’s repurchase announcement reflects our belief that our current share price undervalues the strength of our business and the significant long-term growth opportunity ahead,” said Bill Ready, Chief Executive Officer of Pinterest.
Pinterest noted that it delivered record revenue in 2025, with user levels reaching all-time highs for ten straight quarters and more than 80 billion monthly searches conducted on its platform.
Marc Steinberg, Partner at Elliott and a member of Pinterest’s Board of Directors, said the firm has supported Pinterest since initiating its investment in 2022.
Under the ASR agreement, Pinterest will make a $1 billion payment on March 5, 2026, and expects to receive an initial delivery of roughly 80% of the shares to be repurchased. The full transaction is expected to be finalized by the end of the second quarter of 2026.