Peloton Posts Surprise Profit, Announces 6% Workforce Cut, Raises 2026 Revenue Forecast

Peloton Interactive reported a surprise fiscal fourth-quarter profit of 5 cents per share, beating analysts' expectations and marking a sharp turnaround from a loss in the prior year. The company posted revenue of $606.9 million, exceeding estimates despite a 6% year-over-year decline, and announced a strategic plan to cut 6% of its global workforce as part of a cost restructuring effort aimed at saving $100 million by the end of fiscal 2026. CEO Peter Stern emphasized the necessity of these layoffs and other cost-saving measures for the long-term health of the business, while also pivoting the company toward wellness with new personalized training and meditation features. Peloton forecasted fiscal 2026 revenue between $2.4 billion and $2.5 billion, slightly down from 2025 but above consensus estimates, reflecting investor optimism about stabilizing growth amid ongoing market challenges. The company also highlighted improvements in gross profit and margins in its connected fitness segment, signaling resilience despite the broader sales decline. Overall, Peloton's disciplined financial management and fresh service launches have restored profitability and bolstered investor confidence, as reflected in a significant surge in its stock price.