Capgemini lifts 2026 growth forecast after revenue rises 12%
The French IT consultancy now expects revenue growth of 9.0% to 9.5% at constant exchange rates, its second increase in guidance this year.
Reddit drops 23% on user warning as Pinterest falls after revenue forecast
Reddit cited weaker referrals from Google search, while Pinterest faced a pullback by cross-border sellers in Europe.
Concerns over user growth and revenue weighed on Reddit and Pinterest shares on October 30. Reddit declined 23% before the market opened after warning that Google's increasing use of AI in search could reduce its audience. Pinterest dropped 7.28% after giving a revenue forecast that fell short of Wall Street expectations.
Reddit said its daily active unique visitor count, at about 130 million, could decrease by a low double-digit percentage during the fourth quarter if referrals continue to weaken. Analysts at JPMorgan linked the search traffic decline to Google's expansion of AI Overviews and AI Mode, alongside ranking changes for machine-translated content.
Pinterest put its fourth-quarter revenue forecast at $1.425 billion to $1.475 billion. For the third quarter, it recorded $1.17 billion in revenue, short of the $1.21 billion analyst estimate compiled by LSEG. RBC analysts said changes affecting the EU's de minimis exemption hurt cross-border sellers earlier and more sharply than expected, leaving Pinterest with no revenue growth in Europe.
In a separate filing, Reddit disclosed extensions to its cloud agreements with Amazon Web Services and Google, taking them through 2029. Its three-year spending commitments are $880 million for Amazon Web Services and $580 million for Google.