Peloton (PTON) Stock Forecast & Price Target

Peloton Interactive Inc. is projecting a moderate sales increase of 0.1% to $2.49 billion for FY26, coupled with an improved adjusted EBITDA forecast of $450 million, indicating solid financial management and adaptability. The company has demonstrated strong engagement metrics, with average monthly workout time up 5% year-over-year and an impressive 50% increase since inception. Additionally, Peloton's commercial segment is gaining traction, supported by innovations, while the company anticipates positive revenue growth during FY26 alongside enhanced guidance for free cash flow and EBITDA driven by cost savings and a favorable tariff outlook.

Peloton Interactive Inc. is experiencing a notable decline in its financial performance, highlighted by a 4.5% year-over-year decrease in Connected Fitness Product revenues, which dropped to $152.4 million, as well as a 6.5% decline in subscription revenues, falling to $398.4 million. Despite achieving a paid fitness subscriber count of 2.732 million, the company's gross profit margin of 51.5% underperformed against the consensus estimate of 53.1%, indicating potential issues with profitability. Moreover, Peloton's guidance anticipates a revenue decline of approximately 2% year-over-year, along with a projected decrease in connected fitness subscribers due to increased churn associated with recent membership fee hikes.