Peloton Reports First Annual Profit Despite Projected Sales Drop

Peloton Interactive reported a net income of $63.2 million for fiscal 2026, marking its first-ever full year of net profit and operating income. This represents a significant turnaround from the $118.9 million loss recorded in the previous year, a gain the company attributed to price increases implemented last autumn.

Despite the profit, the company's stock dropped approximately 13% in premarket trading. This decline followed a projection that sales will fall nearly 4% in fiscal 2027, with expected revenue between $2.3 billion and $2.4 billion.

To address subscriber churn and diversify revenue, CEO Peter Stern announced a partnership with Spotify and appointed Sarah Robb O'Hagan as chief content and member development officer. Peloton also intends to expand into commercial gyms by launching its first commercial Bike and Tread this fall.