Peloton (PTON) Stock Forecast & Price Target

Peloton Interactive Inc. is projected to achieve a 0.1% sales increase to $2.49 billion for FY26 while raising its adjusted EBITDA forecast to $450 million, reflecting a substantial growth in segment gross margins and operational efficiencies. The company has noted strong engagement metrics, with average monthly workout time rising 5% year-over-year and an overall 50% increase in engagement since inception, indicating a loyal customer base. Furthermore, Peloton's commercial segment has shown resilience due to recent innovations, and the improved guidance for EBITDA and free cash flow suggests a positive trajectory for financial performance heading into FY26.

Peloton Interactive Inc. has experienced a decline in both its Connected Fitness Products and Subscription segments, with revenues down 4.5% year-over-year for Connected Fitness Products and a more notable 6.5% drop in Subscription revenues. The company's gross profit margin also fell below expectations, coming in at 51.5%, significantly impacted by a decline in Connected Fitness segment margins, which dropped to 6.9%. Additionally, the guidance for FY26 indicates an expected revenue decline of about 2% year-over-year, alongside anticipated drops in connected fitness subscribers due to increased churn related to membership fee hikes.