Peloton Revenue Declines 6% to $551 Million, Stock Hits Historic Low
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Revenue Decline: In Q1 2026, Peloton's revenue fell 6% year-over-year to $551 million, indicating the company's struggle to regain growth post-pandemic, which raises investor concerns about its future prospects.
- Shrinking Subscriber Base: Despite refreshing its hardware lineup and leveraging AI for personalized training plans, Peloton continues to see a decline in its subscriber numbers, highlighting weak market demand and insufficient strategic moves.
- Significant Stock Drop: Currently trading at $6.61 per share, Peloton's stock has plummeted 96% from its all-time high in January 2021, leading investors to question whether it represents a value trap, even with a price-to-sales ratio slightly above 1.
- Improved Financial Health: Although revenue is down, Peloton reported positive GAAP earnings last quarter, indicating some financial improvement; however, the challenge remains whether it can achieve growth over the next five years.
Analyst Views on PTON
Wall Street analysts forecast PTON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PTON is 9.85 USD with a low forecast of 6.50 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 6.600
Low
6.50
Averages
9.85
High
14.00
Current: 6.600
Low
6.50
Averages
9.85
High
14.00
About PTON
Peloton Interactive, Inc. is a global fitness company. The Company is a category innovator at the nexus of fitness, technology, and media, with a subscription platform that combines hardware, distinctive software, and exclusive content. Its segments include Connected Fitness Products and Subscription. The Company’s Connected Fitness Products portfolio includes the Peloton Bike, Bike+, Tread, Tread+, Guide, Row, and various Precor products. Access to the Peloton App is available with an All-Access or Guide Membership for Members who have Connected Fitness Products or through a standalone App Membership with multiple Membership tiers. Access to the Strength+ App is available with an All Access, Guide, or App+ Membership or through a standalone Strength+ subscription. The Company’s subscriptions provide access to Peloton content and its library of live and on-demand fitness classes. The Company’s subscriptions are offered on a month-to-month or prepaid basis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
