Peloton shares plunge as weak demand hits revenue forecast

Peloton Interactive, Inc. PTON announced on February 5, 2026, that its third-quarter revenue is expected to fall between USD 605 million and USD 625 million, a range that sits below the average estimate of Wall Street analysts. The company cited weak demand for its fitness equipment as the primary reason for the forecast. This guidance was released alongside results for the second quarter ended December 31, in which Peloton Interactive, Inc. PTON reported a wider-than-expected loss and a revenue miss. Following the announcement, the share price of Peloton Interactive, Inc. PTON plunged by approximately 25% in the United States US, reaching its lowest level in roughly 18 months.

The disappointing results and guidance have materially weakened the near-term financial outlook and market valuation for Peloton Interactive, Inc. PTON during its ongoing corporate turnaround. The company noted that the at-home exercise equipment sector is facing a period of softer demand, which has specifically impacted sales of exercise bikes and treadmills. This trend has also affected the performance of the company's subscription services, which are a key part of its business model.