Peloton Interactive stock was falling hard Thursday after the at-home fitness company beat earnings estimates but signaled that it expects a sixth consecutive fiscal-year drop in sales as it continues to lose subscribers.
Peloton reported its latest batch of financial results before the stock market opened on Thursday. Adjusted earnings for the fiscal fourth quarter were 13 cents per share, which beat analyst estimates of 12 cents per share, according to FactSet. Revenue for the quarter of $607.7 million also came in above Wall Street expectations of $596.6 million.
Paid subscriptions came in at 2.55 million, an 8.8% decline from the prior year.
Peloton said that it expects fiscal 2027 revenue to be between $2.3 billion and $2.4 billion, which would be a 3.9% drop from the prior year at the midpoint.
CEO Peter Stern is confident that the company will soon see revenue growth, though.
"We are expecting an improving trend of both equipment unit sales and revenue, driven by new product introductions before the end of the calendar year," Stern said on the earnings call. He added that "the product introductions in fiscal 2027, combined with the entry into new categories in fiscal 2028 and beyond, provide the foundation for revenue acceleration."
Wall Street didn't seem convinced. Peloton stock was falling 12% to $5.76 on Thursday and was on pace for its largest percentage decrease since Feb. 5, 2026, according to FactSet.
Peloton was once a pandemic darling, with the stock rising as high as $167.42 on January 13, 2021. Sales surged as people looked for ways to exercise at home amid the Covid-19 lockdowns. But when the world opened back up, Peloton's business declined. Sales have fallen each year since their fiscal 2021 peak of $4.02 billion.
The company has been implementing changes in an effort to win back customers and investors. In October 2024, Peloton announced that Stern would become the new CEO. Then in October 2025, the company raised prices, overhauled its product line, and introduced artificial-intelligence updates.
Wall Street had been optimistic. The stock has gained 56% from its all-time closing low of $3.71 on March 13. But Thursday's stock move signals that another year of sales declines isn't going to cut it for investors.