Key Highlights
- Shares of Peloton plummeted 12% to $5.76 following guidance indicating a sixth consecutive year of declining revenue
- Fourth quarter adjusted earnings per share of $0.13 exceeded Wall Street’s $0.12 estimate; revenue of $607.7M surpassed the $596.6M projection
- Company’s fiscal 2027 revenue forecast of $2.3B-$2.4B missed analyst projections of $2.44B
- Paid subscriber base contracted 8.8% from the previous year to 2.55 million, with first quarter outlook suggesting additional losses
- Chief Executive Peter Stern highlighted upcoming product releases slated for late 2026 as potential drivers for revenue expansion
Shares of Peloton tumbled 12% to $5.76 during Thursday’s trading session, marking the fitness equipment maker’s steepest single-day decline since early February 2026. The sharp downturn occurred even as the company surpassed Wall Street projections for both earnings and sales in its fourth fiscal quarter.
Peloton Interactive, Inc., PTON
The company reported adjusted earnings per share of $0.13, topping the analyst consensus estimate by one cent. For the quarter concluded on June 30, total revenue reached $607.7 million, exceeding the Street’s $596.6 million projection. Net income climbed to $61.6 million, up from $21.6 million during the corresponding period last year.
However, these positive results failed to reassure market participants.
PELOTON $PTON Q4ā26 EARNINGS HIGHLIGHTS
š¹ Revenue: $607.7M (Est. $598M) š¢; flat YoY
š¹ EPS: $0.13 (Est. $0.13) š”
š¹ Adjusted EBITDA: $142.3M (Est. $151M) š“
š¹ Net Income: $61.6M (Est. $62.2M) š“; +185% YoYFY27 Guide:
š¹ Revenue: $2.3B-$2.4B (Est. $2.42B) š“
š¹ Grossā¦ pic.twitter.com/yYt9T7samTā Wall St Engine (@wallstengine) August 6, 2026
The connected fitness company issued fiscal 2027 revenue guidance ranging from $2.3 billion to $2.4 billion. The midpoint of this range indicates a 3.9% contraction compared to the previous fiscal year and trails analyst estimates of $2.44 billion.
This projection would extend the company’s revenue decline streak to six consecutive fiscal years. Peloton achieved its revenue zenith of $4.02 billion during fiscal 2021.
Accelerating Subscriber Attrition
The paid subscriber count fell to 2.55 million during the quarter, representing an 8.8% year-over-year decrease. Peloton shed approximately 247,000 paid fitness subscribers throughout the period.
Management anticipates this trend will persist. Peloton’s first quarter outlook projects between 2.46 million and 2.49 million paid subscribers, equating to a 9.8% year-over-year decline at the midpoint.
First quarter revenue is anticipated to land between $545 million and $565 million, essentially flat at the midpoint compared to the same quarter last year.
On a more positive note, the company expects margin expansion. Full-year gross margins are forecast at 54%, representing a 140 basis point improvement. First quarter gross margins are guided to 57%, marking a 550 basis point enhancement.
Adjusted EBITDA for the full fiscal year 2027 is projected between $475 million and $525 million, reflecting a 6.8% increase at the midpoint. The company targets free cash flow generation of at least $350 million.
Executive Emphasizes Product Pipeline
Chief Executive Peter Stern maintained an optimistic tone during the company’s earnings conference call. He emphasized that forthcoming product introductions scheduled before year-end would catalyze improvements in both equipment sales volume and overall revenue performance.
“The product introductions in fiscal 2027, combined with the entry into new categories in fiscal 2028 and beyond, provide the foundation for revenue acceleration,” Stern said.
Since Stern assumed leadership in October 2024, Peloton has pursued an aggressive turnaround strategy. Last October, the company implemented price increases, restructured its product portfolio, and introduced artificial intelligence-powered features.
Prior to Thursday’s selloff, the stock had surged 56% from its all-time closing low of $3.71 reached on March 13, indicating investors had grown cautiously optimistic ahead of the quarterly report.
Thursday’s decline wiped out a significant portion of those recent gains.
Fourth quarter adjusted EBITDA totaled $142.3 million, rising from $140 million in the year-ago period, though falling short of the $150.9 million analyst consensus.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
