Why Is Peloton Stock Moving Today?

Peloton shares are little changed in pre-market trading today, holding near the level the stock settled at after yesterday's 12.3% drop. That decline followed an August 6, 2026 report in which the company posted its first full year of GAAP net income — $63.2 million on $2.446 billion of revenue — and beat fourth-quarter estimates on both earnings ($0.13 per share versus $0.12 expected) and revenue ($608 million versus $597.83 million expected).

The selloff centered on subscriber retention rather than the profit milestone. Average net monthly churn rose to 2.2% in the quarter, up 40 basis points year over year and 100 basis points from the prior quarter — an acceleration, not just a continuation of an existing trend — and guidance for the first quarter of fiscal 2027 implies connected fitness subscriptions down 9.8% year over year at the midpoint. For a subscription business, a shrinking member base sets a lower ceiling on future revenue regardless of how the most recent quarter closed. Today's flat trading suggests the market has largely finished repricing around that guidance. For the full breakdown, see our dated report on the profit milestone and the churn concern.