Peloton Announces Layoffs in New Cost-Cutting Plan

Shares of Peloton Interactive (PTON) reversed course and turned lower Thursday after the connected fitness company swung to a surprise fiscal fourth-quarter profit and announced a restructuring plan that includes layoffs.

Peloton, known for its stationary bikes and other exercise equipment, reported a GAAP profit of 5 cents per share when a loss of 5 cents per share was expected by analysts surveyed by Visible Alpha. Revenue of $606.9 million fell 6% year-over-year but topped estimates.

“Our operating expenses remain too high, which hinders our ability to invest in our future,” CEO Peter Stern wrote in a shareholder letter. “Today, we are launching a cost restructuring plan intended to achieve at least $100 million of run-rate savings by the end of FY26 by reducing the size of our global team, paring back indirect spend, and relocating some of our work. This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business.”

For fiscal 2026, Peloton sees revenue of $2.4 billion to $2.5 billion, with the midpoint above consensus estimates.

Peloton shares advanced 10% shortly after the opening bell but pared gains and turned lower around noon ET. The stock recently was down more than 1% and is about 20% lower this year.

UPDATE—This article has been updated with the latest share price information.