Peloton (PTON) Stock Falls 12% After Weak Revenue Outlook Overshadows Earnings Beat

TLDR

• Peloton stock dropped 12% to $5.76 after projecting a sixth straight year of revenue declines
• Fiscal Q4 adjusted EPS of $0.13 beat estimates of $0.12; revenue of $607.7M topped the $596.6M forecast
• Fiscal 2027 revenue guidance of $2.3B-$2.4B came in below analyst expectations of $2.44B
• Paid subscribers fell 8.8% year-over-year to 2.55 million, with Q1 guidance pointing to further declines
• CEO Peter Stern pointed to new product launches before year-end as a catalyst for future revenue growth

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Peloton stock was down 12% to $5.76 on Thursday, on pace for its biggest single-day drop since February 5, 2026. The sell-off came despite the company beating Wall Street’s earnings and revenue expectations for its fiscal fourth quarter.

Peloton Interactive, Inc., PTON

Adjusted EPS came in at $0.13, a penny ahead of the $0.12 analyst consensus. Total revenue for the quarter ending June 30 was $607.7 million, above the $596.6 million Wall Street had expected. Net income rose to $61.6 million from $21.6 million in the same quarter a year ago.

But the headline numbers weren’t enough to calm investors.

PELOTON $PTON Q4’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $607.7M (Est. $598M) 🟢; flat YoY
🔹 EPS: $0.13 (Est. $0.13) 🟡
🔹 Adjusted EBITDA: $142.3M (Est. $151M) 🔴
🔹 Net Income: $61.6M (Est. $62.2M) 🔴; +185% YoY

FY27 Guide:
🔹 Revenue: $2.3B-$2.4B (Est. $2.42B) 🔴
🔹 Gross… pic.twitter.com/yYt9T7samT

— Wall St Engine (@wallstengine) August 6, 2026

Peloton guided fiscal 2027 revenue of $2.3 billion to $2.4 billion. That midpoint represents a 3.9% decline from the prior year and falls short of analyst forecasts of $2.44 billion.

It would mark the sixth consecutive fiscal year of declining sales. The company peaked at $4.02 billion in revenue during fiscal 2021.

Subscriber Losses Deepening

Paid subscribers dropped to 2.55 million in the quarter, an 8.8% decline year-over-year. The company lost roughly 247,000 paid fitness subscribers in the period.

The decline is expected to continue. Peloton’s Q1 guidance calls for 2.46 million to 2.49 million paid subscribers, which at the midpoint represents a 9.8% year-over-year drop.

Q1 revenue is expected between $545 million and $565 million, roughly flat at the midpoint versus the prior year period.

On the brighter side, gross margins are projected to improve. Full-year gross margins are expected at 54%, up 140 basis points. Q1 gross margins are guided at 57%, a 550 basis point improvement.

Adjusted EBITDA for fiscal 2027 is projected between $475 million and $525 million, a 6.8% increase at the midpoint. Free cash flow is targeted at a minimum of $350 million.

CEO Points to New Products

CEO Peter Stern stayed upbeat on the earnings call. He said new product launches before the end of the calendar year would drive improvement in both equipment unit sales and revenue.

“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.

Peloton has been working through a turnaround since Stern took over in October 2024. In October 2025, the company raised prices, overhauled its product lineup, and rolled out AI updates.

The stock had rallied 56% from its all-time closing low of $3.71 hit on March 13, suggesting some investor optimism had built up heading into the print.

Thursday’s drop erased a chunk of those gains.

Adjusted EBITDA for Q4 came in at $142.3 million, up from $140 million a year earlier, but below the $150.9 million analyst forecast.