Peloton Interactive (PTON) stock took a beating on Thursday after the exercise equipment company announced earnings results for its Fiscal second quarter of 2026. The company reported earnings per share of -6 cents, which was worse than the -5 cents that Wall Street expected, even though it was an improvement from the -24 cents reported in Fiscal Q2 2025.
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Peloton Interactive reported revenue of $657 million during the quarter, which was below analysts’ estimate of $675.55 million. It also represented a 3% decrease year-over-year and missed the company’s guidance by $8 million. The company noted that it saw lower net additions after a price increase to its subscription service was implemented in October 2025.
Peloton stock was down 9.81% in pre-market trading on Thursday, following a 3.3% rally yesterday. The shares have fallen 4.06% year-to-date and 30.39% over the past 12 months.
Peloton Stock Guidance
Peloton provided investors with updated guidance in its most recent earnings report. Here’s what the company expects in Fiscal Q3 2026.
- Ending Paid Connected Fitness Subscriptions are expected to range from 2.65 million to 2.675 million.
- Total Revenue between $605 million and $625 million, compared to Wall Street’s estimate of $637.8 million.
- Total Gross Margin of roughly 54%.
- Adjusted EBITDA is expected to range from $120 million to $135 million.
And here’s the company’s outlook for the Fiscal 2026:
- Total Revenue of $2.4 to $2.44 billion, compared to analysts’ estimate of $2.48 billion.
- Total Gross Margin of about 53%.
- Adjusted EBITDA of $450 million to $500 million.
- Free Cash Flow minimum target of $275 million.
Is Peloton Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Peloton is Moderate Buy, based on four Buy and eight Hold ratings over the past three months. With that comes an average PTON stock price target of $9.28, representing a potential 57.02% upside for the shares. These ratings and price targets will likely change as analysts update their coverage of PTON stock.
