Peloton fiscal 2026 earnings bring first annual profit, weaker sales outlook
Peloton posted $63.2 million in annual net income, but its fiscal 2027 revenue forecast pointed to another year of declining sales.
By Theo Nakamura · Staff Writer
· 2 min read
Peloton fiscal 2026 earnings delivered the company’s first profitable full year, yet its shares fell after management forecast lower sales for the year ahead. For investors, the report shows a business that has improved profitability while still trying to return its revenue and subscriber base to growth.
Peloton reported net income of $63.2 million for the year ended June 30, compared with a net loss of $118.9 million in fiscal 2025, according to CNBC. CNBC described the result as Peloton’s first full year with both net profit and operating income.
The quarterly numbers were also better than the consensus figures cited by LSEG. Fiscal fourth-quarter net income was $61.6 million, or 13 cents a share, versus $21.6 million, or 5 cents a share, a year earlier. Revenue edged up to $607.7 million from $606.9 million. LSEG’s cited expectations were 13 cents a share and $598 million in revenue.
Why did Peloton shares fall after a profitable year?
The market reaction centered on Peloton’s outlook. The company expects fiscal 2027 revenue of $2.3 billion to $2.4 billion, nearly 4% below the prior year and below the $2.42 billion analyst estimate cited by LSEG, CNBC reported.
Management said sales are expected to decline as the company moves beyond the comparison with hardware and subscription price increases introduced last fall. Peloton nevertheless forecast higher gross margin and adjusted EBITDA, a company profitability measure, in fiscal 2027, along with another year of positive free cash flow.
That combination helps explain the tension in the report: Peloton’s near-term financial outlook calls for better margins and positive cash flow, but lower overall sales. A full-year profit records what the company achieved in the period ended June 30; guidance is management’s expectation for the period ahead.
Subscriptions remain the unresolved demand question
Peloton’s recent operating figures show why investors are focused on revenue. The company reported 2.661 million paid connected-fitness subscriptions in fiscal 2026’s second quarter, down 7% from a year earlier. In the third quarter, subscriptions were 2.662 million, down 7.6% year over year, according to Peloton’s results releases.
Chief Executive Peter Stern told CNBC that gross additions and connected-fitness sales were gradually improving while churn, the rate at which subscribers leave, was flat. He also said the combined effect had not yet produced net growth.
Peloton has announced a Spotify content partnership and plans to introduce commercial Bike and Tread products for gyms this fall. Stern said the company had interest from prospective gym partners but was not yet making sales, CNBC reported. Those initiatives may broaden where Peloton earns revenue, but the fiscal 2027 forecast keeps the immediate focus on whether demand can stabilize.
This story draws on original reporting from CNBC.
