By Angela Palumbo

Peloton Interactive stock was soaring on Thursday after fiscal third-quarter financial results reinvigorated investor confidence that the at-home fitness company could score a much needed comeback.

Peloton reported adjusted earnings of six cents a share, which missed analyst estimates of 8 cents a share, according to FactSet. Revenue for the quarter of $630.9 million beat analyst estimates of $618.3 million.

In the same period last year, Peloton reported an adjusted loss of 12 cents a share on revenue of $624 million.

Connected fitness subscribers came in at 2.66 million, which was an 8% decline from the prior year.

Free cash flow for the quarter was $151 million, a 59% jump from the prior year.

Peloton also said it expects fiscal 2026 revenue to be between $2.42 billion and $2.44 billion, compared with analyst estimates of $2.43 billion.

"In Q3 we made great progress on deepening our relationships with our Members, growing our opportunities to reach new Members globally, diversifying our revenue streams, and planting new seeds for future growth," CEO Peter Stern said in the earnings release.

Investors seemed excited about what could grow from those newly planted seeds. Shares popped 8.4% to $5.64 on Thursday. Meanwhile, Planet Fitness stock was tumbling 33% to $43.10 after the gym company gave disappointing financial guidance.

These are stock moves that look similar to what was happening at the height of Covid-19. Still, Peloton stock has a long way to go before getting back to its pandemic era peak.

Peloton stock surged during the height of the Covid-19 driven lockdowns. People were drawn to the company's products as a way to get access to a gym-like experience from the comfort of their homes. Fiscal 2021 sales soared 120% from the prior year to $4.02 billion. The stock hit a record closing high of $167.42 on Jan. 13, 2021.

But when the world opened back up, Peloton was left behind. Shares have fallen 97% from that closing high. Sales have declined every year since their fiscal 2021 peak. Investors have been waiting for a catalyst to get them excited about the company again. Peloton is making changes to try to spur that investor sentiment.

In October 2024, Peloton announced that Stern would become the new CEO. One year later, the company announced price increases for members, overhauled its entire product line, and introduced artificial intelligence updates.

Early this year, Peloton implemented layoffs. Then on April 27, Peloton announced a partnership with Spotify Technology to bring its fitness and wellness content to Spotify Premium subscribers as part of the music streamer's new fitness category.

Peloton stock's jump on Thursday shows that investors are excited about the steps the company has taken, and what's ahead. It's up to management to keep the momentum going.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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May 07, 2026 13:08 ET (17:08 GMT)

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