Peloton Stock Gives Back Gains After Upbeat Earnings Report

Summary

Shares of Peloton Interactive Inc. NASDAQ: PTON have been attempting a comeback after hitting a 52-week low in mid-March. Peloton Interactive TodayPTONPeloton Interactive$5.29 +0.11 (+2.12%) As of 05/15/2026 04:00 PM EasternP/E Ratio132.28Price Target$8.25 The stock has climbed more than 40% since then, as the market has seemingly begun to buy into the idea that the company’s long-running turnaround effort may finally be gaining traction. Peloton’s latest earnings report added to that optimism, with shares rallying after the company reported fiscal third-quarter 2026 results on May 7. However, the stock has since given back most of those gains, leaving some investors wondering whether it’s actually time to get back on the bike.Get Peloton Interactive alerts:Sign Up Peloton Delivers Encouraging EarningsPeloton’s Q3 results for fiscal year 2026 (FY2026) offered some encouraging signs for investors. The company reported revenue of roughly $631 million, up 1% year over year and topping Wall Street expectations by nearly $13 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $126 million, up 41% from the previous year, while net debt declined 70% year over year. The company also returned to profitability, reporting net income of $26 million. Earnings per share of 6 cents improved from a loss of 12 cents in the year-ago quarter, though results came in a penny below expectations. Gross margin rose 90 basis points year over year to 52%, but came in below the company’s guidance due to promotions on its connected fitness equipment. Commercial Business and Spotify Partnership Offer Growth OpportunitiesThe commercial business unit was a strong performer during the quarter, with a 14% year-over-year rise in revenue. The company is looking to build on that momentum with the release of new commercial products, including a bike and a treadmill, expected in the second quarter. In the company’s earnings call, Chief Executive Peter St...