Peloton (PTON) Stock Forecast & Price Target

Peloton Interactive Inc. is poised for growth with an anticipated sales increase of 0.1% to $2.49 billion for FY26, alongside an upward adjustment of its adjusted EBITDA forecast to $450 million, signifying a positive trajectory in profitability. The company has demonstrated strong engagement metrics, with average monthly workout times rising by 5% year-over-year and cumulative engagement increasing by approximately 50% since its inception. Additionally, Peloton's improved guidance for adjusted EBITDA and greater subscription gross margins, alongside the strength of its commercial segment, underscore a favorable outlook for its financial performance moving forward.

Peloton Interactive Inc. has exhibited declining revenue trends, with Connected Fitness product revenues decreasing 4.5% year-over-year and subscription revenues falling 6.5% year-over-year, suggesting challenges in both product sales and user retention. The company’s gross profit margin was reported at 51.5%, lower than the consensus expectation of 53.1%, indicating potential inefficiencies and the adverse impact of a seatpost recall on margins. Furthermore, Peloton is forecasting a revenue decline of 2% year-over-year for FY26, reflecting ongoing struggles in subscriber growth, which is expected to continue amid rising churn rates associated with increased membership fees.