Peloton (PTON) Q1 2026 earnings

Peloton On Thursday, it posted its second straight profitable quarter as it issued strong guidance for the crucial holiday shopping season, leveraging its relaunched product portfolio to drive growth.

The connected fitness company reported a surprising net income of $13.9 million in the three months ended Sept. 30, compared to a loss of $900,000 a year earlier.

For the current quarter, Peloton’s strongest quarter in terms of hardware sales, the company expects revenue to be between $665 million and $685 million, a slight increase from the same period last year and substantially better than Wall Street’s forecast of $665 million, according to LSEG.

Peloton also raised its revised EBITDA forecast for the full year, now expecting it to be between $425 million and $475 million, up $25 million from its previous forecast on both ends. Much of this forecast exceeds analyst expectations of between $400 million and $450 million, according to StreetAccount.

Shares jumped about 11% in extended trading on Thursday.

Despite the good news, Peloton is still dealing with issues from its past. Earlier on Thursday, it said it had initiated another recall of its early product lineup. The Consumer Product Safety Commission said the company is recalling 833,000 of its original Bike+ devices after receiving reports that the seat post could break and separate while riding — the same issue that led to a recall of its base Bike model in 2023.

Peloton’s latest recall cost the company $13.5 million during the quarter reported Thursday, contributing to a 0.3 percentage point decline in gross margin.

For the fiscal first quarter of 2026 reported Thursday, Peloton beat analysts’ expectations for both top and core results.

Here’s how the fitness company performed in its fiscal first quarter compared to what Wall Street expected, based on a survey of analysts conducted by LSEG:

• EPS: 3 cents versus 0 cents expected
• profit: $551 million versus the expected $540 million

Sales fell to $551 million, down about 6% from $586 million the previous year.

Under new CEO Peter Stern, who took over in January, the connected fitness company has finalized cost cuts and turned its attention back to growth now that it’s back to regularly generating free cash flow and operating profitably.

Last month, Peloton relaunched its product lineup, introducing a line of commercial equipment and raising prices on subscriptions and devices ahead of the holiday shopping season.

The revamped range, which touches on bike, rowing machine and treadmill products, features an AI tracking camera, speakers, a 360-degree rotating display and hands-free control, among other new features.

Peloton is betting that consumers will be willing to spend big on products to get cheerful holiday gifts, either for themselves or loved ones. But just over a month after launch, it’s still unclear how well it will perform. The company’s first fiscal quarter ended the day before the new products were launched.

Throughout the retail industry, the personal electronics category has been under pressure.

While Peloton operates in a category of its own, shoppers have been pulling back on purchasing other big-ticket items and being cautious about where their dollars go in an uncertain economic environment.

During Peloton’s conference call at 5 p.m. ET, investors will be looking for details on how the new products have performed so far, as well as any additional color on how the latest recall will impact its financial results.

Following Peloton’s recent recall, the company said at the time that it saw a decline in membership and higher-than-expected costs as a result.