Peloton Q4 2026 Earnings: First Profitable Year, but Weak 2027 Sales Outlook

August 6, 2026 · Published August 7, 2026

Peloton posted its first-ever full profitable year and topped profit estimates, but shares fell as it guided to shrinking sales in fiscal 2027.

Key takeaways

• Peloton edged past Wall Street’s profit expectations for the quarter and essentially matched revenue forecasts, a sharp turnaround from years of losses.
• Quarterly net income rose to $61.6 million (13 cents a share) from $21.6 million (5 cents a share) a year earlier, and for the full fiscal year Peloton swung to roughly $63 million in net income from a $118.9 million loss — its first-ever full year of profitability.
• The profit improvement came from cost cutting rather than growth: subscription revenue (money from monthly App and Connected Fitness membership fees) rose 7% to $437 million, but hardware sales (bikes and treadmills) fell 14% to $171 million, leaving total revenue nearly flat versus a year ago.
• Paid Connected Fitness subscriptions fell 8.8% year-over-year to about 2.55 million, and the pace of members canceling (churn) ticked up to 2.2% a month, both signs the subscriber base is still shrinking even as the company gets more profitable per remaining customer.
• The TTM gross margin of about 52% and operating margin of about 4.5% show Peloton now keeps a modest profit after covering its operating costs — a milestone after years of operating losses — though the roughly 1% net margin means very little of each revenue dollar ultimately reaches the bottom line.
• Free cash flow (cash generated after running the business and capital spending) was $89 million for the quarter and $378 million for the full year, up $54 million from the prior year, giving Peloton more flexibility to pay down debt or invest without raising new financing.
• For fiscal 2027, Peloton guided to revenue of $2.3–$2.4 billion, a roughly 4% decline, while forecasting continued gross margin and adjusted EBITDA growth and at least $350 million in free cash flow — essentially projecting a smaller but more profitable business.
• CEO Peter Stern called fiscal 2026 “a defining milestone” driven by “substantial improvements in our cost structure,” and told CNBC “this was the year where Peloton sort of grew up,” framing the results as proof the turnaround plan is working.
• Despite the profit milestone, shares fell nearly 13% the morning results came out, as investors focused on the guidance for shrinking sales and continued subscriber losses in fiscal 2027 rather than the earnings beat.

Q4 2026 in context

Figures for the quarter ended Jun 2026 and the quarter ended Jun 2025, as reported to the SEC. Fourth-quarter flows are derived as the fiscal year minus its first three quarters.

How the stock took it

Peloton Interactive Inc closed at $6.52 on Aug 5, 2026, the last session before the report, and at $5.68 on Aug 7, 2026, the first session after it — -12.9% across the report.

Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.

Fundamentals

Financial history →

Sources: company report · CNBC