Peloton forecast fiscal 2027 revenue of $2.3 billion to $2.4 billion after posting its first annual operating profit, but continued subscriber declines and a soft sales outlook pushed shares down more than 15%.
Peloton posted its first full fiscal year of net income and operating income as a public company in fiscal 2026, with net income of $63.2 million, operating income of $161 million, adjusted EBITDA of $468 million and free cash flow of $378 million. The profitability milestone was overshadowed by guidance for fiscal 2027 revenue of $2.3 billion to $2.4 billion, roughly a 4% midpoint decline from fiscal 2026 and below the $2.42 billion analysts surveyed by LSEG expected, sending the stock down more than 15% in premarket trading. Fourth-quarter revenue of $607.7 million topped expectations, while adjusted earnings per share matched forecasts at 13 cents and gross margin widened to 56.7%, but Peloton's paid connected-fitness subscriptions fell 8.8% to 2.553 million and overall membership dropped 8% to 5.5 million. CEO and President Peter Stern is trying to broaden Peloton into a connected wellness platform through commercial equipment, retail expansion, strength training, Spotify content and programs aimed at GLP-1 users, even as churn and hardware demand remain under pressure.