The social media site forecast earnings of $0.55 per share - far below analysts expectations of $0.74 per share.
LinkedIn also reported a loss of $8m (Â£5.4m) for the year, compared with a $3m profit in 2014.
LinkedIn has been investing heavily in expansion outside the US, and said it plans to continue those efforts.
"We enter 2016 with increased focus on core initiatives that will help drive growth and scale across our portfolio," said chief executive Jeff Weiner.
The company also said it was phasing-out one of its newer advertising services that had not worked out as planned.
The decision means the company will forego $50m in sales in the short term.
LinkedIn shares dropped 26% after the company projected lower than expected profits for the first quarter of 2016.