Q3 26 EPS
$0.06
MISS 20.42%
Est. $0.08
Q3 26 Revenue
$630.9M
BEAT +2.13%
Est. $617.8M
vs S&P Since Q3 26
+7.8%
BEATING MARKET
PTON +11.0% vs S&P +3.2%
Market Reaction
Did PTON Beat Earnings? Q3 2026 Results
Peloton Interactive delivered a mixed set of results for Q3 FY2026, beating revenue expectations while falling short on the bottom line, as the connected fitness company continued navigating its ongoing financial turnaround. Revenue of $630.90 millio… Read more Peloton Interactive delivered a mixed set of results for Q3 FY2026, beating revenue expectations while falling short on the bottom line, as the connected fitness company continued navigating its ongoing financial turnaround. Revenue of $630.90 million edged up 1.1% year-over-year and topped the $617.76 million consensus estimate by 2.13%, driven by stronger-than-expected Connected Fitness equipment sales across its Peloton and Precor brands. Earnings per share, however, came in at $0.06, missing the $0.08 consensus by 20.42%, even as the company swung to GAAP net income of $26.40 million from a net loss of $47.70 million a year ago. The margin shortfall was tied largely to opportunistic promotional activity, which trimmed gross margin 210 basis points below guidance to 51.9%. Adjusted EBITDA climbed 41% to $126.20 million, underscoring meaningful cost discipline even as paid connected fitness subscriptions continued to erode, falling 8% to 2.66 million. Looking ahead, Peloton raised its full-year FY26 revenue outlook to $2.42 billion to $2.44 billion and lifted its free cash flow target to approximately $350 million, signaling cautious confidence in the trajectory of its recovery.
Key Takeaways
- • Outperformance in Connected Fitness equipment sales across Peloton and Precor brands
- • 22% reduction in total operating expenses year-over-year
- • Adjusted EBITDA increased 41% year-over-year to $126 million
- • Free cash flow increased 59% year-over-year to $151 million
- • Net debt reduced 70% year-over-year to $173 million
- • Pilates workouts increased 48% year-over-year
PTON Forward Guidance & Outlook
Peloton raised its full-year FY26 outlook. Total revenue is expected at $2.42 billion to $2.44 billion, a 2% decline year-over-year at the midpoint but an increase from prior guidance. Total gross margin outlook is approximately 52.5%, up 160 bps year-over-year but 50 bps below prior outlook due to promotional activity. Adjusted EBITDA is expected at $470 million to $480 million, up 18% year-over-year at the midpoint. Free cash flow is expected in the vicinity of $350 million, a $75 million increase from the prior minimum target. Ending Paid Connected Fitness Subscriptions are expected at 2.55 million to 2.57 million, a decline of 8.6% year-over-year at the midpoint.
PTON YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
PTON Revenue by Segment
With YoY comparisons, source: SEC Filings
“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. At the same time we continue to strengthen our financial foundation, highlighted by revenue growth, a significant increase in Adjusted EBITDA, and a dramatic reduction in Net Debt.”
— Peter Stern, Q3 2026 Earnings Press Release
PTON Earnings Trends
PTON vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PTON EPS Trend
Earnings per share: estimate vs actual
PTON Revenue Trend
Quarterly revenue: estimate vs actual
PTON Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 MISS | $0.08 | $0.06 | -20.42% | $630.9M | +2.13% |
| Q2 26 MISS | $-0.06 | $-0.09 | -53.85% | $656.5M | -2.76% |
| Q1 26 BEAT | $0.00 | $0.03 | +934.48% | $550.8M | +1.80% |
| Q4 25 BEAT FY | $-0.05 | $0.05 | +194.52% | $606.9M | +4.65% |
| FY Full Year | $-0.42 | $-0.30 | +27.90% | $2.49B | +1.18% |
| Q3 25 MISS | $-0.06 | $-0.12 | -110.53% | $624.0M | +0.44% |