Key Takeaways
- PLNT shares collapsed approximately 33% during trading on May 7, reaching a fresh 52-week low of $37.03
- First-quarter results exceeded expectations with EPS of $0.74 versus $0.63 projected; revenue reached $337.2M, representing a ~22% YoY increase
- The fitness chain reduced its FY2026 EPS forecast to $3.19, falling short of the ~$3.37 Wall Street consensus
- Executives scrapped anticipated Black Card membership fee increases and pointed to disappointing New Year enrollment figures
- William Blair removed its Outperform rating, shifting to Market Perform; several other analysts reduced their price projections
Shares of Planet Fitness (PLNT) experienced a dramatic 33% decline on Thursday, May 7, plummeting to a 52-week low of $37.03 after the budget gym operator significantly lowered its fiscal year 2026 projections despite delivering a better-than-anticipated first quarter.
The fitness company’s shares had settled at $63.96 in the previous trading session. Trading was temporarily halted during the day due to exchange volatility controls before activity resumed.
The first-quarter performance itself was impressive. Planet Fitness delivered earnings per share of $0.74, surpassing Wall Street’s $0.63 estimate by $0.11, while total revenue reached $337.2 million — roughly $38 million above projections and marking nearly a 22% year-over-year gain.
The company’s membership base concluded the quarter at approximately 21.5 million, with system-wide same-store sales climbing around 3.5%.
So what triggered such a severe market reaction? The answer lies in the company’s forward-looking statements.
Forward Outlook Disappoints Market
Executives established FY2026 EPS guidance at $3.19 — falling below the ~$3.37 analyst consensus — and provided revenue guidance centered at approximately $1.4 billion, indicating a more moderate growth path than investors had anticipated.
The fitness chain also abandoned previously announced plans to increase pricing for its Black Card membership tier, a decision that directly undermines future revenue projections.
Company leadership attributed the revised forecast to disappointing new member acquisition during the New Year period — traditionally the most robust season for gym memberships — as a primary factor behind the lowered expectations.
Planet Fitness additionally reduced its adjusted EBITDA projections and system-wide club sales expectations for the full year.
Analyst Community Responds
William Blair executed a downgrade on PLNT from Outperform to Market Perform in response to the announcement, becoming the most prominent analyst firm to reduce its stance on the shares.
Piper Sandler had previously shifted the stock to Neutral from Overweight during February.
TD Cowen reduced its price objective from $100 to $90 while preserving a Buy recommendation. Royal Bank of Canada slashed its target from $120 to $85, also keeping an Outperform rating. Wells Fargo adjusted downward from $90 to $80 while maintaining an Overweight designation.
Robert W. Baird lowered its target to $100, still positioned above current trading levels.
Notwithstanding the reductions, the average analyst price target stands at $109.27, representing a substantial premium to current trading levels. The consensus rating remains “Moderate Buy,” comprising 13 Buy or Strong Buy recommendations, five Hold ratings, and one Sell.
PLNT currently maintains a market capitalization of approximately $3.41 billion with a P/E ratio of 16.27.
The stock’s 50-day moving average sits at $73.99 while its 200-day moving average registers at $91.54. For the year-to-date period, PLNT has declined more than 41%.
Institutional ownership accounts for roughly 95.5% of outstanding shares.
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